next Global Political Economy

Global Political Economy

• government often enter regional trade agreements for political reasons.
• these include: enhancing security; improving their international bergaining position etc
• economic motivation for regionalism include acces to a larger domestic market; etc
• the new regionalism differs from the previous wave in that participating countries are typically using agreements to increase their integration into the world economy.
• corporation may prefer regionalism to global trade liberalization if it anables them to capture economies of scale while avoiding exposure to global competition
• the new regionalism is of such recent origin that the evidence regarding its effects remains inconclusive
• floating exchange rates have performed an important role in faciliting balance of payments adjustments, but critics argue that they have also been subject to short-term volatility and longer-term misalignments.
• the international monetery and financial system has undergone three important transformations since the late 19th century, in response to changing economic and political condition
• financial globalization has also had important distributive consequences along class, sectoral, and gender lines.
• financial markets have always been prone to bouts of instability.
• financial crisis generated policy innovations inside industrial states, and the pettern is repeating itself in many emerging-market nations.
• collaboration efforts, often through intrenationa; institution, can assist developing countries as they open their financial markets.
• international financial crises are usually more difficult to manage than domestic ones because of jurisdictional ambiguities.
• some basic level co-ordination is required in crisis management.
• for managing markets, the IMF has often tahen a lead role in attempting to resolve crises.
• Policy debates continue on effective mechanism for the restructuring of unsustainable debt in some developing nations.
• Economic globalization is conceived as having three logics: technics, economics, and politics.
• 3 types of theory associated with economic globalization: structural, conjuctural, and constructivist
• Understanding globalization as a historical process involves examining it in terms of three s[eeds of social change.
• 3 theories of economic globalization are therefore in principal complementary, producing a layered explanation from its structured to its contingent origins.
• The impact of globalization on the autonomy, capacity, and sovereignty of the nation state is much disputed.
• The globalization of production is not new, but the magnitude with which it takes place and the degree of fragmentation in global value chains is new.
• The increasing levels of global production cn be measured in both the dramatic increases in FDI and the increasing importance of trade in components.
• The increase in global production is a result of economic liberalization, improvements in transportation, and advances in technologies that facilitate modularization.
• Since the early 1980s, china has become a manufacturing powerhouse, and one of the world’s leading destinations for FDI
• The rise of global production creates new opportunities for developing countries, but also real risk’ first; for those that are unable to attract FDI, and second; for those able to attract FDI but unable to maximize the benefits for indegenous firms.
• Good governance was the key, including tackling corruption, holding free elections, and developing and envorcing property rights and contracts.