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    Contem - 2 Global Economy

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    THE STRUCTURES 1, Chapter 1 | OF GLOBALIZATION Lesson1 | Global Economy Nowadays, goods can be sold and bought all over the world. Just because people grow cotton in Alabama or wheat in Kansas, or create computers in California or cars in Michigan does not mean that they have to sell them to the people in their town, state, or country. In the age of lightning-speed communication and transportation today, products like wheat, cotton, cars, and computers can be sold to people all over the ‘world. Ina blink of an eye, transactions are made through gadgets, apps, and Internet, and goods are carried by ships, airplanes, trains, and trucks all over the globe. Indeed, various forms of computers and computer applications have made the worlwide buying and selling all the more easier by calculating payments in split- seconds and innovatively keeping track of shipments. The Internet has been helping significantly also by making people aware that such worldwide buying and selling can be done with ease. GLOBAL ECONOMY The phenomenon explained above manifests a global economy today. Global economy refers to the system of trade and industry around the globe that has developed as the outcome of globalization, that is, the manner in which economies have been developing to function together as seemingly one system. The concept also denotes global economic activities among various countries that are deemed interconnected and thus can affect other countries either positively or negatively. ‘Through global economy, countries today can plan to get their goods from anywhere in the world, not just from locations they have always acquired them. A typical example of this is cars: America used to produce almost all the cars vended to Americans; nowadays, most cars driven by Americans are produced by Japanese companies. Ironically, some Japanese companies have put up auto plants in America; so technically, some cars are American-made sold to Americans by Japanese companies. 37 Global economy is oftentimes equated to the international spread of capitalism, especially in recent decades, across national borders and with slight restraints By governments. Capitalism's global economy has become divisive as some critics claim that its mectianism, free markets, and free trade take occupations away from productive workers in affluent nations while producing factories in the poor ones. However, its advocates contend that the free movement of capital motivates investment in poor countries and generates jobs in the process called globalization. DEFINING ECONOMIC GLOBALIZATION ‘The International Monetary Fund (IMF) defines economic globalization as “a historical process, the result of human innovation and technological progress. It refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders. The term sometimes also refers to the movement of people (labor) and knowledge (technology) across international borders” (Benczes, 2014). This phenomenon has some interrelated dimensions: (@) the globalization of trade of goods and services; (2) the globalization of financial and capital markets; (3) the © Professor Emeritus Tamés : . Since coebaneotice globalization of technology and communication; and (4) the nothing but a process making globalization of production. the world economy on : fj aa ; t fi rna- ‘organtesystem’by extending _—_-Eeonomic slobalization is _distine from inte! transnational economic tionalization. While internalization is simply about the processes and economic extension of economic activities of nation states across relations to more and more A é : ceontres ond by deepening the borders, economic globalization is said to be functional economic interdependencies integration among globally distributed activities. That is, jerwong there, economic globalization is a qualitative transformation [image source: konyv7.hu] a rather than merely a quantitative change. Professor Emeritus at the Corvinus University of Budapest Tamés Szentes expounds economic globalization by explaining that in economic terms, “globalisation is nothing but a process making the world economy an ‘organic system’ by extending transnational economic processes and economic relations to more and more countries and by deepening the economic interdependencies among them” (Benczes, 2014). Among other things, this explanation asserts that economic activities and processes in economic globalization, such as production, can be interpreted only in a global context, that is, in an integrated world economy. is also used to denote the growing interdependence of world economies as a consequence of the increasing scale of cross-border trades of merchandises and services, flow of international capital, and fast and wide-ranging spread of technologies. The concept reflects the ongoing expansion and mutual integration of market frontiers, and is considered by some as an irreversible trend for the economic development in the whole world at the The term economic globalization turn of the millennium. Globalization has significant impacts on the economic scenario of bot! countries and the global economy. Undertaken in the light of globalization, international economic relations have gained principal importance and are claimed to have led to prompt development and decline in poverty in many developing countries like India and China. EconomyWatch.com enumerates some important aspects of globaliz international economic relations (“Globalization and International Economic Relations,” 2010): 1. Globalization ensures easier movement of goods and services across nations. ‘This is an absolute necessity for fostering international economic relations. 2. Easier movement of people between countries has also been made possible by globalization which is conductive to international economic relations. This also helps people in one country to migrate to another for employment, thereby addressing the problem of unemployment in many countries. 3. Globalization leads to free trade between countries. Since the early days of globalization, numerous bilateral trade agreements have been signed h individual ation and between countries. 4, Globalization has ensured easier and faster flow of information across geographical boundaries. The success of economic relations is often dependant on information. Globalization has led to reduction in cultural barriers which has proved to be conductive for economic co-operations among nations. 6. Movement of capital between countries due to globalization has also played an important role in international economic relations. Globalization has given rise to several multi-national corporations who undetake economic activity across geographical borders. Globalization has helped to address environmental issues which are strategic to international economic relations. 39 ACTORS THAT FACILITATE ECONOMIC GLOBALIZATION The following are the major actors or players of present-day global economy as they facilitate economic globalization: 40 2. Intergovernmental organizations (1G0s) also known as international governmental organizations, are organizations that have national governments as members (referred to as member-states), Remarkable examples are the United Nations (UN) and its various agencies. The world’s economic coordinating institutions, such as the World Bank, the International Monetary Fund (IMF), and the Group of Eight (G-8), are also IGOs, Other IGOs are military coalitions, such as the North Atlantic Treaty Organization (NATO), and political alliances, such as the Arab League and the African Union. Other examples include the Organization of Petroleum Exporting Countries (OPEC), the International Atomic Energy Agency (IAEA), and the World Trade Organization (WTO). International governmental organizations (IGOs) are formed by treaty, involving two or more nations, to work in good faith, on concerns of common interest. IGO’s endeavor for security and peace, and take care of social and economic issues. -_ International nongovernmental organizations (INGOs) are nonstate institutions. They have the same mission as non-governmental organization (NGOs), but are international in scope and have headquarters around the world to deal with definite issues in several countries, Anon-governmental organization (NGO) is an institution that is neither a part of a government nor a traditional profit-oriented business. According to the UN, “any kind of private organization that is independent from government control can be termed an NGO, provided it is not-for-profit, non-criminal and not simply an opposition political party” (“Non-Governmental Organization,” n.d.). INGOs are commonly geared toward advocating human rights, promoting the interests of the poor, relieving suffering, providing social services, takingon community development, and protecting the environment. Usually established by ordinary citizens, INGOs may be funded by foundations, businesses, or private philanthropies, although some avoid formal funding and prefer instead to be run by volunteers. Some examples of INGOs are Greenpeace, the International Olympic Committee, and the International Committee of the Red Cross. INGOs arose from the need to coordinate special activities across national borders. The Red Cross, for instance, was organized in 1863 to institute and monitor the laws of warfare. In other matters, like aid for refugees or disaster assistance, many nations also depend on INGOs to provide necessary services that states are unwilling or unable to offer. In the 20th century, specialized INGOs also emerged in such areas as tourism, sports, business, and communication. Public surveys reveal that NGOs and INGOs “often enjoy 2 high degree of public trust” (“Non-Governmental Organization,” n.d.). Notwithstanding its activity within one country, NGOs endeavor towards solutions that can profit undeveloped countries that face the backlash of economic globalization. NGOs and INGOs ‘carry out several services and humanitarian tasks, bring citizen concerns to governments, promote and monitor policies, and advocate political participation through provision of information. Multinational corporations (MNCs) are companies w that have facilities and other assets in at least one Ya country other than its home country. MNCs have pp” Aaa offices and/or factories in various countries and typically have a centralized head office where Cxz, they coordinate global management. These 2 LOE C corporations generally derive at least a quarter ff their revenues outside their home country. nanan penne ey own faciities ond other Almostall majormultinationalsare American, assets in at least one country Japanese, or Western European, uch as Honda, th na a ries in Nike, Toshiba, Coca-Cola, BMW, Wal-Mart, and various countries, they typically AOL.-Supporters of multinationals claim that have a centralized head office : where they coordinate global they generate technologically advanced g00ds management and high-paying jobs in countries that otherwise [Image sowrce:mnco005, + would not have access to such things. On the biogsept.com). other hand, detractors allege that multinationals exert unjustified political influence over governments, abuse developing nations, and produce job losses in their own home countries. Multinational corporations are said to have brought increased automation to developing countries, which may injure Jess- automated local firms and thus oblige their workers to develop new skills in order to adapt into the changing economy, leaving some behind. ‘There are four categories of multinationals: (a) a decentralized corporation with a strong presence in its home country; (b)a global, centralized corporation that acquires cost advantage where cheap resources are available; ©) @ global company that builds on the parent corporation's R&D; (@) a transnational enterprise that usesallthreecategories. RaDmeansresearchanddevelopment) that is, the work a business conducts toward the innovation, introduction, and {improvement ofits products and procedures. It involves exploratory activities cts and procedures or to lead to the generation of new to improve current produ‘ products and procedures. a { : q 42 Globalization is seen by some as a cause of a phenomenon called the race {0 the bottom which implies that multinational companies are persistently attempting to increase or maintain their influence in countries that ‘are already dependent solely on foreign investment, Multinationals are alleged to target export-reliant countries. In turn, these underdeveloped countries undercut their competitors by dropping their labor standards, thereby lowering their labor costs for the investing MNCs. To be able to do what they want, multinational corporations purposely move into countries with the most relaxed laws and regulations for labor standards. This phenomenon generates sweatshops with harsh labor conditions, job insecurity, and low wages. Transnational corporations (TNCs) refer to incorporated or unincorporated enterprises consisting of parent enterprises and their foreign affiliates. A Parent enterprise is that which controls assets of other entities in countries other than its home country, typically by owning a particular equity capital stake. Examples include General Electric, Royal Dutch, Ford Motor, Allianz, AXA, and ExxonMobil. MNCs and TNCs are types of international corporations, Both MNCs and TNCs maintain management headquarters in one country, known as the home country, and operate in a number of other countries, known as host countries. Most TNCs and MNCs are gigantic in terms of budget and are vastly influential to globalization. They are also seen as major drivers of government policies, local economy, environmental and political lobbying. Not all MNCs are transnational companies whereas TNCs are a type of multinational corporations. MNCs have an international identity as belonging toa specific home country where they are headquartered; TNCs are borderless, as they do not consider any certain country as their base, home, or headquarter. An MNC has investment in other countries, but does not have coordinated Product offerings in each country as it is more engrossed with adapting their products and service to each distinct local market. A TNC, on the other hand, has invested in external operations, has a central corporate facility, but gives decision-making, R&D, and marketing powers to each individual foreign market. Istvan Benczes, head of the Institute of World Economy at the Corvinus University of Budapest (CUB), believes that the major actors of contemporary globaleconomy are the TNCs. In fact, heclaimsthat contemporary globalization is seen by some as equated principally with TNCs, considered the foremost driving forces of economic globalization of the last 100 years as they account for roughly two-thirds of world export (Benczes, 2014). While some consider ‘TNCs as (still) representing national interest, others identify TNCs with the mechanisms through which the rich can exploit the poor. THE MODERN WORLD-SYSTEM A world-system is “a socioeconomic system, under systems theory, that encompasses part or all of the globe, detailing the aggregate structural result of the sum of the interactions between polities” (“World-system,” n.d). World-systems are typically larger than single states, but do not have to be global. The Westphalian System is said to be the foremost world-system functioning in the contemporary world, standing for the system of sovereign states and nation- states formed by the Westphalian Treaties in 1648. Westphalian sovereignty, or state sovereignty, is the principle in international law which states that every nation state has exclusive sovereignty over its territory. (© Istvan Benczes: He believes Fg . OEY: that the major actors of This principle that nothing should authorize intervention contemporary global economy in matters essentially within the domestic jurisdiction of 0"¢ the TNCs as they are seen as the foremost driving forces of any state is enshrined in the United Nations Charter. This e/orer slobalization on Jost sytem upholds that every state, no matter how large or 100 yeors. small, has an equal right to sovereignty. ee feneae source voridecoromn tl Some sociologists nonetheless begin to doubt the Westphalian System as the real modern world system, especially that globalization has made nation-states appear to be like borderless territories.’ Immanuel Wallerstein, a senior research scholar at Yale University and director of the Fernand Braudel Center at Binghamton University, defines the modern world-system as “specifically a capitalist world economy,” with capitalism explained as “the endless accumulation of capital"(Wallerstein, 2004). Capitalism is typically defined as an economic and political system in which the industry and trade are controlled not by the state but by private owners for profit. It is an economic system which recognizes private property rights. Both globalization and capitalism promote free exchange of goods and services. Capitalism benefits from global trades and global labor, and so globalization is fueled and financed by international capitalists. Wallerstein defines the world-system as a geographical division of labor in which the basic linkage is economic, although it is fortified by political and cultural factors. For him, it is “a social system, one that has boundaries, structures, member groups, rules of legitimation, and coherence” (2004). ‘Thus far, there have been only two varieties of world-systems: (1) world-economies and (2) world empires. A world-empire (e.g., the Roman Empire, Han China) are huge bureaucratic structures with a sole political center and an axial division of labor, but multiple cultures. A world-economy is a large axial division of labor with multiple political centers and multiple cultures. Therefore, world-systems can be categorized as politically unified (e.g., world-empires) and not politically unified (e.g., world-economies). Small non-state units, such as tribes, are considered micro-systems. 43 WALLERSTEIN’S WORLD SYSTEMS THEORY World systems theory, an approach to world history and social change, was developed by sociologist Wallerstein, nt indicates, among other things, that a country's economic system cannot be understood without reference to the world system of which it is a part.Wallerstein's world systems theory proposes that there is a world economic system in which some nations profit while others are exploited. Wallerstein proposesa theoretical model to comprehend the modern world system,- fundamentally capitalist in nature, which followed the crisis of the feudal system and the advent of Western Europe to world supremacy. For © Immanuel Wallerstein: His him, the new capitalist world system has been based on an world systems theory states that a country’s economic international division of labor that defines relationships system cannot be understood among various regions and the kinds of labor conditions without reference to the world system of which itis a part; it within each region. In his framework, the kind of political proposes that there isaworid * System was also directly related to each region’s position economic system in which within the world economy. some nations profit while others are exploited. As a foundation for comparison, Wallerstein offers four Image source: https:// various categories: 1) core, (2) semi-periphery, (3) periphery, ‘commons.wikimedia.org/ wiki/File:Profesor_immanuel_ and (4) external, into which all regions of the globe can be Wallerstein dialoga. con. located. The categories pronounce every region's relative prensa_(5999944086) jpg) position within the capitalist world economy and some 44 internal economic and political features. All parts of the f system are reliant on and interact with each other that any change in the system will influence the system as a whole: . Fe The Core, The core countries control and exploit the peripheral countries for labor and raw materials. They dominate the economic arrangement of their historical time and endeavor to maintain or magnify this authority, One central clement of a core nation is its capacity to produce and allocate products. This is often coupled with resilient state machinery connected to a unified nati culture. A core natin’s culture usually serves as an ideolo its dominance. The core nation’s government supports economie in: merchants, private businesspeople, and financial instituti play a dynamic role in core countries. The state also affor defend and expand economic interests. Contemporary over financial institutions, high technology, and high- economic gain, core countries compete among themseh of the modern world-system. ‘ional gical justification for fluence exerted by ions, which typically rds military force to Core countries take Profit businesses, For ves within the context 2. The Periphery. The peripheral nations are dependent on core countries for capital. Historical examples include some colonies from the 16" to the 20" centuries and those termed as underdeveloped or semideveloped for @ short time in the 20th century. Peripheral areas usually lack strong central governments or are directly or indirectly controlled by other states, export raw materials to the core, and depend on forced labor practices. Peripheral nations serve the interests of the core nations as they provide cheap sources of labor, agricultural crops, luxury goods, and raw materials. On occasion, peripheral nations gain importance, serving as strategically situated posts to protect trade routes between the core and other peripheral countries. Peripheral areas have often been a source of conflict among core nations. Core methods of domination range from various forms of economic dependency, colonialism, and anticolonial imperialism. The core seizes much of the capital surplus engendered by the peripheral areas through uneven trade relations. 3. The Semi-Periphery. The semi-peripheries lie between the two extremes. Semi-peripheral areas represent either core nations in decline or peripheral countries attempting to improve ‘their relative position in the capitalist world economic system. Hence, the semi-peripheries share characteristics of both core and peripheral countries. Often, the semi-peripheries also serve as buffers between the core and the peripheries. As such, semi-peripheries display tensions between the central government and a strong local landed class. Wallerstein explains that the semi- peripheriesare exploited by the core but often are themselves exploiters of peripheries. Semi-peripheries serve as intermediary trading areas between the core countries and the peripheries. They also have lesser manufacturing sectors for either local or international trade, and some capital amassing. External Areas. External areas maintain their own economic systems as they manage to remain outside the modern world-system either by choice or neglect. Russia serves as a good example. Unlike Poland, Russia's wheat has served principally to supply its internal market. Although it traded with Asia and Europe, its internal commerce remained more significant than its external trade. Likewise, the substantial power of the Russian state helped regulate its economy and constrained external commercial influence. However, practically every region in the world had been consolidated into the modern capitalist world-system by the 20" century. In Wallerstein’s theory, what binds the three units or categories into a system is interaction that engenders an ever-changing systemic dynamic. While there is a hierarchy of core, periphery, and semiperiphery, the activities of one have an effect upon the others. Furthermore, while the structural process remains constant, the individual parts ofthe system change over time. 45 In other words, Wallerstein's world-systems theory 1S about @ eee which reached a climax in the modern, capitalist, world-system: "© oS theorizes that there is an end to this dialectics as this cannot go on “Or™t TT No system goes on forever. All systems are said to have lives: they come inl & “che at some point, survive according fo some rules, and then move far from fe sag - and cannot survive any longer. “Our system has moved far from equiliDrltt, Xo he processes, which one can describe, that maintained a moving equilibrium for five hundred years no longer function well, and that's why were in this structural crisis (Wallerstein, 2004). GLOBAL ECONOMIC INTEGRATION -y inch -Economic integration is an agreement among tifferent regions that usually includes the lessening or abolition of trade barriers, and the coordination of monetary and fiscal policies. Fiscal policy refers to the means by which a government adjusts its tax rates and expenditure levels to monitor and influence a country’s economy: Monetary policy involves the actions of a central bank, currency board, or other regulatory committee that determine the rate and size of growth of the money supply, which in turn affects interest rates. These two policies are used in various combinations to direct a country’s economic goals. Economic integration aims to.reduce costs for both producers and consumers and to increase trade between the countries involved in the agreement. Global economic integration is simply economic integration in a more or less global level. Global economic integration is said to be not a new phenomenon as even in ancient times, some communication and trade took place among distant civilizations. This process carried out through trade, factor movements, and communication of economically beneficial knowledge and technology has been on a mostly growing trend ECONOMIC INTEGRATION: REDUCE a > COSTS nscalrouces — TRADE + Figure 2.1. Economic infegration: An agreement that includes th f ele of rade barriers and coordination of monetary and fiscal policies to rani 3 costs for both producers and consumers and to increase trade among ceva [image source: investopedia.com) ed 46 since the travels of Marco Polo seven centuries ago. Despite intermittent interruptions, such as following the collapse of the Roman Empire or during the interwar period in this century, the amount of economic integration among various civilizations around the globe has largely been increasing. Global economic integration has various dimensions such as (a) through human migration; (b) through trade in goods and services; and (b) through movements of capital and integration of financial markets. The pace and behavior of economic integration in these dimensions are affected by three fundamental factors (Mussa, 2000). 1, Improvements in the technology of transportation and communication have reduced the costs of transporting goods, services, and factors of production and of communicating economically useful knowledge and technology. 2. The tastes of individuals and societies have generally, but not universally, favored taking advantage of the opportunities provided by declining costs of transportation and communication through increasing economic integration. 3. Public policies have significantly influenced the character and pace of economic integration, although not always in the direction of increasing economic integration. Taking a Stand on Global Economic Integration Contemporary sociolologists mention some potential benefits as well as costs of economic integration. These pros and cons may help people to build their stand on globalization. Some of the usually mentioned advantages of economic integration are the following: 1. As regards trade benefits, global economic integration characteristically leads toa decrease in the cost of trade, better availability and a broader selection of goods and services, and efficiency gains that cause greater purchasing power. 2, In employment, opportunities tend to increase because trade liberalization causes market expansion, technology sharing, and cross-border investment flows. 3, Because of tighter economic ties, political cooperation among nations can improve, which can help resolve clashes peaceably and thus lead to greater stability. Global economic integration upholds free trade which promotes global economic growth, generates jobs, makes companies more competitive, and lowers prices for consumers. Economic integration prompts transnational companies to invest and install plants in other countries, thereby providing employment for the people in those nations usually getting them out of poverty. 5. There are more inflow of information among two countries and cultural intermingling where each nation learns more about other cultures. Socially, people have become more open and tolerant towards each other as those who live in the other parts of the globe are not considered aliens. "7 | | | | | etka ae 6 Many consider swift travel, mass communtcations, and speedy dissemination of information, suchas through the internet, as benefits ofeconomic Integration and globalization, In spite of the advantages, economic integration has also assumed costs like the following: 48 1. Economic integratiori results in the erosion of national sovereliinty, Members of economic unions are normally mandated to adhere to rules on trade, Monetary policy, and fiscal policy, which are developed by an unelected external policymaking body, 2. Big multinational corporations can exploit tax havens in other nations to avoid paying taxes. They are also accused of soci! injustice, unfair working conditions (including slave labor wages, child labor, and prisoners used to work), as well as lack of concern for environment (such as mishandling of natural resources and ecological damage). 3. Transnational companies and multinational corporations are progressively influencing political decisions. There is thus a threat of these corporations Tuling the globe as they gain more and more power due to economic integration and globalization. 4. Some claim that economic integration and globalization lead to the infiltration of communicable diseases. Fatal diseases like HIV/AIDS are disseminated by tourists even to the remotest corners of the world. Increase in human trafficking is also attributed to globalization. 5. Globalization and economic integration are said to have made the rich richer and the non-rich poorer. Global economic integration may be wonderful for managers, owners, and investors, but "hell" on poor laborers, Although competition among countries is supposed to drive prices down, in many cases, this is not happening as countries manipulate their currency to get a price advantage. 6. For developed countries, jobs are lost and moved to lower cost countries. Laborers in developed countries face pay-cut demands from establishments who threaten to export jobs. This produces a culture of fear for many middle class workers who have slight leverage in this global game. Name: Professor: ‘Score: Date: Define the following terms using your own description. 1. Global economy 2. Economic globalization 3. Non-governmental organization 4, Multinational corporations 5. Transnational corporations 49 6. World system 7. World Systems Theory 8. Economic integration 9. Monetary policy 10. Global economic integration 50 Use the following guide questions and/or instructions for meaningful class discussion, 1, How do you understand economic globalization? What are the key concepts related to it? 2. Identify the actors that facilitate economic globalization. Briefly discuss each of them. 3. Define the modern world system. Briefly discuss Wallerstein’s world systems theory. 4, Articulate a stance on global economic integration. Defend you stance. 5. Identify some important aspects of globalization and international economic relations. The following are suggested undertakings in the class. 1. Discuss the students’ outputs on the E-Learning Assignment about the article, Global Economic Integration: Benefits and Costs. 2. Debate: The students debate the motion, “That global free trade has done more harm than good.” 3. Each student chooses one actor of globalization. He or she then shows creative manner how the particular actor facilitates economic globalization. E! LEARNING ASSIGNMENT, Read the article “How to Start a Cool Discussion in OurHappySchool.com” in https://ourhappyschool.com/tle/how-start-cool-discussion-ourhappyschool-com. 1. Read and strictly follow the five instructions under “Simple Steps.” Post a topic for discussion that is related to market integration and International Financial Institution (IF) (¢.g., Please comment on this, “The Philippines benefits from the International Monetary Fund (IMF). Agree or disagree? Why?”) 2. Submit to your instructor the two outputs from this e-learning activity: (1) screen shot of the published comment thread and (2) your brief essay. Have fun! a 51 Name: Professor: Score: Date: Identification. Write on the line before the number the concept being described. 1. This refers to the means by which a government adjusts its tax rates and expenditure levels to monitor and influence a country’s economy. 2. It is said to be the functional integration among globally distributed activities. 3. These are organizations that have national governments as members. 4, It involves exploratory activities to improve current products and procedures or to lead to the generation of new products and procedures. 5. This is said to be the foremost world-system functioning in the contemporary world. 6. These are huge bureaucratic.structures with a sole political center and an axial division of labor, but multiple cultures. 7. He proposes a theoretical model to comprehend the modern world system which is fundamentally capitalist in nature. 8. The policy that involves the actions of a central bank, currency board, or other regulatory committee that determine the rate and size of growth of the money supply. 9. These are typically larger than single states, but do not have to be global. 40. The Head of the Institute of World Economy who believes that the major actors of contemporary global economy are the transnational corporations. 11, itis typically defined as an economic and political system in which the industry and trade are controlled not by the state but by private owners for profit. 12. The nations that are dependent on core countries for capital, 13. Thisis the principle in international law which states that every nation state has exclusive sovereignty over its territory. 14. A phenomenon which implies that multinational companies are persistently attempting to increase or maintain thelr influence in countries that are already dependent solely on foreign investment. _______ 16. These are nonstate institutions h ____ 18. Itis simply about the extension of economic ___ 19, It denotes global economic activiti n profit undeveloped

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