Economic Globalization

Satisfactory Essays
Economic globalization raises debate about whether integration will reduce the probability of conflict and war. Globalization in this context refers to an international trading market, where state economies become dependent on global trade. States prosper by being economically advanced, promoting trade would increase state capital. For economic globalization to be successful in reducing conflict it would follow neoliberalism’s free hand of the market, limiting government’s role in trade. The economic liberalization of trade globalization can reduce resource wars and civil wars influenced by natural resources. Integration would generate state interdependence preventing the risk of conflict between trading states. Independent states in the past have shown to be unstable and have been the political and economic causes of war on a global scale. Economic globalization and economic integration produces a neoliberal market, interdependent states, and stable governments reducing the probability of conflict and war.
Neoliberalism opens the global market for freedom of exchange limiting government intervention preventing the government from gaining capital from corrupt means, such high taxation rates on foreign goods so that the demand for domestic goods increase leading to economic growth. Neoliberal theory according to Adam Smith states, “most of the State regulations for promotion of public prosperity are unnecessary, and a nation in order to be transformed from the lowest state of barbarism into of the highest possible prosperity needs nothing but bearable taxation, fair administration of justice, and peace” (List, year, 49). A neoliberal approach to globalizing the economy restricts state policy on control over the trade of natur...

... middle of paper ...

... to Ikenberry, “the Anglo-American agreements rules for a relatively open and multilateral system of trade and payments but did so in a way that would reconcile openness with the commitment of national governments to full employment and economic stabilization” (1993, p.57). The Bretton Woods agreement was established to deter the reoccurrence of World War 2 and restore the postwar economy; by “international investments, capital movements, exchange rate parities, and commodity prices were all potentially legitimate means for solving economic problems, an important purpose of the international stabilization fund and the other proposed postwar institution was to separate legitimate from illegitimate economic practices” (Ikenberry, 1993, p.70. This view of solving the postwar economic problem presents the promotion of free trade to reduce the probability of conflict.