Economic Theories Of Globalization

In general, globalization is the sharing of culture and money and products between countries that is happening because of international trade and advances in transportation and communication. Globalization might be seen as a recent development but really International trade has influenced changes across the borders for centuries. Globalization is also a social process where people become more aware about cultures and people across geographical, political and social borders. The economic interdependence of different countries as well as advancements in communication technology and the progress of technology in general all contributed to globalization.

There are many theories of globalization;

i. World system theories.

This focuses on the importance of the world as a unit rather than looking at an individual country. It divides the world into 3 regions, core counties, periphery countries and semi-periphery counties. Core counties include areas like Western Europe and United States. These counties have a strong central government with enough tact to support it. They are economically diversified, industrialized sand relatively independent about side control. They have strong middle and working classes and focus on higher scope production of material goods rather than raw materials. Periphery counties are those in Latin America and Africa and tend to have a relatively weak government. They tend to depend on only one type of economic activity like extracting raw materials. There