NANTAI NVERSTES DISCUSSIONS ON GLOBALIZATION GLOBAL TRADE AND

NİŞANTAŞI ÜNİVERSİTESİ DISCUSSIONS ON GLOBALIZATION GLOBAL TRADE AND FINANCE İktisadi, İdari ve Sosyal Bilimler Fakültesi iisbf. nisantasi. edu. tr NİŞANTAŞI ÜNİVERS İTESİ ©

A GLOBALIZING ECONOMY • The globalization of world politics involves, among other things, a globalization of economics. • The globalization of economic activity can be understood in several different ways. • Sceptical interpretations emphasize that current levels of cross-border trade, money movements, and investment flows are neither new nor as great as some claim. • Globalist interpretations argue that large-scale relaxations of border controls have taken international economic activity to unprecedented levels. • Geographical interpretations highlight the proliferation of economic transactions in which territorial distance and borders present limited if any constraint. NİŞANTAŞI ÜNİVERSİTESİ ©

GLOBAL TRADE • The second half of the 20 th century witnessed the development of transborder production and associated intra-firm trade in a number of industries. • Many states have created special economic zones in order to attract so-called global factories. • Much contemporary commerce involves transborder marketing of global brand-name products. • The growth of a substantial global dimension to world trade may have deterred protectionism. NİŞANTAŞI ÜNİVERSİTESİ ©

GLOBAL FINANCE • Globalization has changed forms of money with the spread of transborder currencies, distinctly supraterritorial denominations, digital cash and global credit cards. • Globalization has reshaped banking with the growth of supraterritorial deposits, loans, branch networks, and fund transfers. • Securities markets have gained a global dimension through the development of transborder bonds and stocks, transworld portfolios, and electronic round-the-world trading. • Globalization has likewise affected the instruments and modes of trading on derivatives markets. NİŞANTAŞI ÜNİVERSİTESİ ©

LIMITS TO ECONOMIC GLOBALIZATION • Global trade and finance have spread unevenly between different regions and different circles of people. • Transborder commerce has to date often widened material inequalities within and between countries. • Although lacking sovereign powers, states exercise significant influence in global trade and finance. • While economic globalization has weakened cultural diversity and national attachments in some respects, it has promoted them in others. NİŞANTAŞI ÜNİVERSİTESİ ©

SOURCES • John Baylis & Steve Smith (2001) The Globalization of World Politics: An Introduction to International Politics. Oxford: Oxford University Press. NİŞANTAŞI ÜNİVERSİTESİ ©