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Unformatted text preview: September 4, 2009 Lecture 1 Internationalization v. Globalization Internationalization : extent to which different national economies interact with one another through the exchange of goods and services. Indicators: trade/production Exports+imports/GDP Looking at such an indicator over time, we see the degree of economic openness of the country Focus on extension of economic activities across national boundaries (i.e. arms length trade) Quantitative Globalization (economic): involves more than simply increased international trade Set of processes through which economic activities are increasingly interconnected Functional integration of production activities (MNCs) Goods use parts manufactured in different areas Emergence of new set of actors on global stage (institutions, WTO, WB, IMF) Qualitative changes facilitate global integration The Debate: Competing explanations 1) Hyperglobalizers : New world economic order; borderless economy See the nation state as having lost influence; not the primary container of economic space Global actors more important where goods and people flow with no barriers Triumphalist accounts: F.Fukuyama, T. Friedman. o In 1992, Fukuyama writes end of history. Sees falls of berlin wall as where capitalism is new economic model o Friedman, world is flat saying that geography doesnt matter, field has been leveled by globalization 2) Skeptics : Economic globalization=overblown, a myth or mislabeling of internationalization 3) Transformationalists: Globalization=on-going transformative set of processes that are open ended; not the end form Uneven patterns of development (i.e. wealth) National economic space does not equal national territorial borders (more than arms length trade) Emphasis on local-global connections Is economic globalization new? Skeptics will argue globalization is old process Pre 1500, china and India traded wit SE Asia, eastern Europe, Islamic world and Mediterranean Trade in spices, NR, etc 1500 to 1800 Commodity integration grew slowly (a little over 1%/annum) Different trade from today- not competing, not substitutes Mainly spices, silk, silver, slaves (sugar and cotton) Commodities with a high rate of value compared to weight and bulk From 1720 to 1780 international trade doubles in value 1780 to 1840 international trade increases threefold 1884-1914 1848- unified world is not generally known 1870-1914- some argue world economy was more integrated than it is today Past integration was shallower Current deeper integration is organized primarily within MNC production networks New Elements 1) Technological Communications (internet, cell phone, fax) Transportation (air trave)- things and people can move quickly. This has reduced barriers and the friction of distance 2) Markets Millions of dollars can move around the globe instantly and electronically...
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This note was uploaded on 02/01/2010 for the course GEOG 208 taught by Professor Akin during the Spring '10 term at McGill.
- Spring '10