Globalization-How it works

Globalization-How it works - Relative power is still the...

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Globalization: How it Works Because of the new era of globalization, the economic policies of states can not be examined within a vacuum. Webs of interdependence mean that when a state alters its economic policies, the effects will spillover beyond the borders of that one particular state. Furthermore, states will be constrained in the types of economic policies they can pursue because the potential detrimental long-term effects such policies might have on the state’s economy vis-à-vis the world economy. Realists will argue states should take an inward-first approach. Economic issues should be resolved domestically, which will give states greater influence internationally – then states should enter the world economy and seek to get other states to follow along – this is usually done through bilateral trade negotiations.
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Unformatted text preview: Relative power is still the major issue in play for realists. Liberals argue that an outward-first approach should be taken. States should cooperate and coordinate economic policies at the international level, and then bring their domestic economies in line – the liberals are more willing to allow the erosion of state sovereignty in the name of mutual benefits. Identity theorists examine the goals being pursued by economic policy and evaluate whether these goals are good for a wide range of international issues. Identity theorists will focus, for example, on the effect of the Washington Consensus on the developing world, the possibility of pursuing sustainable development policies, what ideologies are driving the international economy, etc....
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This note was uploaded on 11/18/2011 for the course POLISCI 1003 taught by Professor Olson during the Fall '11 term at GWU.

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