Socialist Wallerstein has done a lot of work in this area. He has what he termed World System Analysis, which is a perspective or theory, which says that there are unequal economic and political relationships in which certain industrialized nations and their global corporations dominate core of the world’s economic system. WORLD SYSTEMS THEORY (WST) -BEGINNING OF THE 21ST CENTURY WST • studies the entire global economy as a world system. • claims that we cannot understand the fate of a country without understanding its place in the overall system. • claims that countries are not poor because of their own characterics, they are poor because of their position relative to other countries in the global capitalist system.
Arguments in favour such as the higher standards of living, freedom or economic growth are being disputed with others claiming the loss of identity and jobs, environmental degradation and the vicious circle where poor and developing countries remain poor or underdeveloped and explored by the rich ones (or their multinational companies). At first, it all may seem that these events only lie on the economic side of the question. Yet, as David Harvey (1989) explained, “globalization is a complex and multidimensional (economic, political, social, technological, and cultural) process that involves a compression of time and space”. In layman’s terms, it includes changes not only in economy, but also in politics, society and culture since it is slightly difficult to separate our human bodies from what we see, the way we think about it and how it all interact with our own values and preconceptions. On the one hand, Economic Globalisation focuses on international migration, foreign direct investment (FDI), portfolio investment and international trade.
Often it is socio-political pressures driven by protectionism, racism and colonialist ideologies that lead to tighter controls and stricter enforcement. Clearly, migration is affected by international as well as national politics; international factors interact with domestic structures and policies, influencing labor migration flows, and who gets to be invited or barred. In spite of this however, the question remains as to why no regime has developed a system to regulate migration that is comparable to the liberal regulations for trade, money, and finance. According to Hollifield, “[t]he answer maybe obvious: liberal states have had few incentives to cooperate in controlling migration, because states and employers were able to obtain foreign labor without international cooperation” (1992, p. 2). Moreover, the political-economic characteristics of labor, as a factor of
From the perspective of a poor countrie a threat is the fact that now it is more open to being exploited and controlled by the developed countries. The control can be exercised over some political systems and even social aspects. Poor countries often have to submit because failure to do so could lead to deleterious effects including the withdrawal of financial assistance, FDI and possible trade restrictions through trade embargos. It is notable that even when developing countries receive financial aid from developing countries and international financial organisations, they are not at liberty to spend the finances in the projects that they desire to develop. The projects to be undertaken using the funds are often dictated by the donor countries; most often to promote their own self interests.
INTRODUCTION Globalization is a very large entire marketplace towards integrated and interdependent world for improving efficiency and yields and reducing production. It is a complex process which link people, businesses or other organizations around the world to develop trade, investment, technology, education, information and communication or begin to operate as an international scale. It is same as Robert’s finding (2011), which stated that globalization is the process of interaction or integration among people, companies, government by different nations, through international trade and investment and aided by information technology. On the other side, the information in the Investing Answer (n.d.) has defined that globalization is an integration
However, laid down policies and especially foreign policy can go a long way in determining the relationships forged as a result of globalization. There are many advantages and disadvantages associated with globalization. United States of America as a developed economy is faced with many advantages in terms of economic gains. On the other hand, its citizens are faced with many predicaments such as loss of employment and low quality products in their retail shelves among others. In many ways, globalization works in tandem with foreign policy (Lindsay et al., 2003).
The pricing decision in international marketing is very complex. Different pricing strategies are required for different markets. Whatever pricing strategies the organisation follows, it should reflect the true value for money. The international business environment is very complex and it is influenced by many variables due to the fluctuations in the internal as well as external business environment. When one talks of international business, it is indispensible to have a proper knowledge of the price structure of products in different markets.
Increased international trade has brought not only enormous growth but also disruption across the globe. International trade raises incomes, creates jobs, reduces prices, and increases workers’ earning power. However when large economies experience depressions, the world is affected by the effects because the global economy is so interconnected. When trade decreases, jobs and businesses are lost and it would be a serious social problem. In the same way that globalization can be important for international trade; it can also have devastating effects because it affects international trade significantly(‘Trade and Globalization’).
In this regard, regionalization is considered a distinctive feature of regionalism (Malamud, 2010). Indeed, the general integration of societies within a region ostensibly to creating a socio-economic integration a key feature of regionalization is similar to an informal framework of collapsing immigration policies and creating multiple trade channels, which are a characteristic of regionalism. Thus, when global economies become overly connected, there exists a tendency for this integration to ultimately spill over to political and social integration exemplifying the thin line between the dynamics of regionalism and
Kurihara (2013), according to different investigations it is resulted that the precariousness of exchange rate has adverse impact upon worldwide trade in both empirical and theoretical terms. The conclusion by investigating the link of international trade and exchange rate precariousness in underdeveloped and developed countries and empirical link of international trade and financial improvement in developed countries, it is founded that precariousness in exchange rate has negative impact upon international trade in under developing countries and financial development has positive impact upon international trade in developed countries.