Globalization: Causes and Impact

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Globalization Causes and Impact

• If we are interested in its causes, we take
  globalization as the dependent variable.
• If we are interested in its impact, we take
  globalization as an independent variable.
• What exactly is globalization????
• How do we define what we hear and observe?

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Define globalization!!!Militarily
privatization of war machine?Politically
democratization?Socially convergence of tastes
and values?Regionalism globalization? A
stumbling block, or a stepping stone?Finally
Economically greater integration!!!Do we hear
the word integration oftenyou know why
nowfinanceinvestmenttrade productionlabor
Globalization refers to the increasing linkage of
national economies through trade, financial
flows, and FDI by multinational firm.Integration
of many aspects of production, both vertically
and horizontally, from comparative advantage to
competitive advantage
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Globalization a historical perspectiveLimited
nature of globalizationmeasured in national
numbers relative to the world totals before
WWIthere was a deeper degree of globalization in
finance, investment, tradelabor was more
mobile then!!!ConclusionsIn absolute terms
yesIn relative terms questionableWill
globalization be reserved? Historically yesA
proposition globalization continues to be based
on a political foundation that could disintegrate
if major powers fail to strengthen their
economic and political ties
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Let us try to look for causes globalization as
a dependent variableA standard
formuladependent variable f independent
variable(s)A schedule of independent
variablesInternational level no -- because the
inquiry is tautologicalNational level maybe
spread of market ideasSocietal/Corporate level
profit maximization a constant variable, then
and nowIndividual level have people changed as
economic persons?What is the cause of last
round of globalization technology a first cut
What is the cause of this round of
globalization again technology, and added depth
and extensivenessBut what can we say about
causes of technological innovation back to
institutionsMarket as an institution or what
else
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Let us grapple with impact globalization as an
independent variableBut what is the (or
alleged) problem, or do we have a problem?3
perspectivesfree market a rosy picture --
peace and prosperity nationalist skeptical
loss of jobs, welfare, polarization of wealth
communitarian loss of community, environmental
degradation
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Impact globalization as an independent
variableIssues and perspectives
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A critical viewGlobalization as a whole is
exaggeratedInternational finance is admittedly
the most compelling case. Many popularly debated
issues have not defined perimeters nor
established causality, or have missing
variables(1) National policies and strategies,
implications for both developed and developing
countries(2) Loss of national sovereignty
history has not shown better records gold
standard before WWI(3) Job loss vs job
creation(4) Wage rates and productivity(5)
China an exceptional developing
countrytrade/investment/production/exchange rate

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Bring state back in!!!!