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The pioneer in this territory was Ohmae (1990), who argued that the “interlinked economy” has wiped out national borders. This review lays out some of the issues that divide them, then focuses on unresolved debates over the political consequences of globalization.įirst, if the rise in cross-border economic flows as a proportion of the world's economy is uncontestable, should this be interpreted as the advent of globalization or as an extension and deepening of patterns of internationalization and regionalization? The case for globalization as a new and irreversible phenomenon is made most strikingly in works written for a large public readership.
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Researchers disagree even on the basic characteristics of the globalization process. But beyond the definition, there is little agreement.
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That means that the main determinants of income and employment can now only be understood at a global and no longer a national level” ( Glyn & Sutcliffe 1992:77). In a formulation that recurs across the spectrum of views on globalization, Glyn & Sutcliffe define it as “the idea that the world is now really a single economy in the macroeconomic sense. In this new literature of the 1990s, there is a common understanding of globalization as a set of changes in the international economy that tend to produce a single world market for goods, services, capital, and labor. As the magnitudes of trade, foreign direct investment, and short-term capital flows across national boundaries have skyrocketed since the 1970s, social scientists have returned to Angell's questions. Between World War I and the 1980s, cross-border economic exchanges remained at far lower levels than they had reached at the turn of the century. This line of theorizing about the politics of open economies was cut off in its infancy by the disastrous failure of predictions such as Angell's and by the fact that national economies closed up at the time of the war. … the result of daily use of those contrivances of civilization which date from yesterday-the rapid post, the instantaneous dissemination of financial and commercial information by means of telegraphy, and generally the incredible increase in the rapidity of communication which has put the half-dozen chief capitals of Christendom in closer contact financially, and has rendered them more dependent the one upon the other than were the chief cities of Great Britain less than a hundred years ago.įrom this financial interdependence, Angell deduced the irrationality, indeed the unlikelihood, of war, for he thought it had become too costly to the fabric of international economic exchange to be a conceivable option. This vital interdependence…cutting athwart frontiers is largely the work of the last forty years. Angell ( 1913:54–55), reflecting on this theme on the eve of the war, had already identified the very same factors that today are imagined to be the motors of globalization. But the idea that globalization undermines the autonomy and leverage of the nation-state appears in writings from this earlier period of internationalization. How do we understand the impact of these complex transformations on our societies as risks, rewards, and security are redistributed in a global economy? How do we understand the impact of these changes on politics?īefore World War I, it was only the rare observer of the international economy who wondered about the effects on domestic politics of soaring levels of cross-border capital movements, migration, foreign direct investment, and the new transportation and communication technologies that accelerated movement of information and goods among countries. New partnerships, commodity chains, alliances, and mergers link producers, suppliers, and customers. Corporations that were once vertically integrated are shrinking their boundaries and focusing on core specializations. At the same time, economic institutions are also changing. Producing across national boundaries has shifted research, development, and manufacturing activities involving higher and higher degrees of skill and value into other societies. The rise of incomes in developing countries has created large new consumer markets. Over the past decade, the liberalization of trade, finance, and investment across the world has opened vast new territories to dynamic economic actors. The rise of public and scholarly interest in globalization and politics is a new phenomenon.