Causes of Economic Globalisation

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  • Causes of Economic Globalisation
    • The collapse of the bretton woods system
      • major currencies were allowed to float (dollar not based on the price of gold as it was)
        • destabalised global system as imports and exports more comepetitive
        • increased role of TNC's
    • The Bretton woods system
      • Prevent economic protectionism
        • Britain betweeen the Wars had traded exclusivly with the empire called the 'Stirling Zone'
          • Deindustrialisation during the 1920's ruined Britain's trade arrangment and economy
      • fixed exchange rates
      • support for Keynesian (heavy financial investment via loans
      • Created a consumerist capitalism
    • Collapse of the Communist world and the opening of the Chinese economy
    • Structuralist View
      • Capitalism is a global ideology,
      • Globalisation is the end goal of Capitalism
      • "it is profitable to remove all national boundaries and to captivate the whole world market" Karl Marx
      • like imperialism in the nineteenth century was to maintain profit levels globalisation is a result of the global economic depression in the 1970's
    • Liberal view
      • against the Structuralist view
      • Globalisation is the product of the human desire for self betterment
        • the desire for money and proserity goes beyond national and cultural differences
      • focus on the role of technology
        • international movement of goods is much easier
          • aeroplane (1903) telephone (1876)
        • PC's have created a global finance markets and global stores (Amazon, Ebay)
      • Hyperglobalists (radicals)
        • Globalisation was inevitable when the internet, mobile phones and computerised financial trading became available
    • Realist View
      • focus on Mercentilism and the importance of the state in the global economy
        • economics has not beaten politics
          • the global economic system has been shaped by the political intersts of the USA
            • globalisation is a result of US economic decline in the 70's and 80's to give american TNC's greater global reach
            • shift toward globalisation happened through the world bank and world trade organisation
              • globalisation is the result of the power that the US has in these structures (an example of structural power)
          • Globalisation has not sidlined the state but is a tool for powerful states to get their objectives
          • Globalisation represents the spread of Neo-Liberal ideology and is political
  • The collapse of the bretton woods system
    • major currencies were allowed to float (dollar not based on the price of gold as it was)
      • destabalised global system as imports and exports more comepetitive
      • increased role of TNC's

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