Economic Globalization And Globalisation

Globalisation:

The history of globalisation goes back to the second half of the 20th century, the development of transport and communication technology led to situation where national boarders where a limiting factor for economic growth (Hamdi, 2013). Meanwhile, globalisation has become an umbrella word for a number of political, environmental and economic trends which present challenges on a global scale. In an economic sense, the term globalisation is defined as the increasing interdependence of markets and production in different countries through trade in goods and services, cross borders flow of capital, merging of corporations and the exchange of technology (Smeral, E. 1998). Giddens, 1990 states, that globalisation is the intensification

This phenomenon has been the primary driver for economic liberalisation, resulting in the lowering of tariffs, the encouragement of foreign investment and the deregulation of financial markets (Lee, 1996). As a result, globalisation whether it’s a liberal or capital approach can impact both financial markets and those who regulate these markets. As noted, financial markets are now largely integrated and linked through technology which means that regulators no longer have sovereignty over the movements of cross boarder capital (Walker, 1996). Globalisation evolved partly due to the trend for increasing international trade across national boundaries and the conduct of business in many countries. Simply, it is a process that refers to the growth of markets and industries on a global scale and this growing interdependence between national economies has resulted in a trend towards global markets, global production and economic competition (Brooks, 2011).

Effects of Globalisation in the interest of employees:

Understanding the effects of globalisation is critical for governments concerned about employment, working conditions and ultimately poverty

Similarly, neoliberalism argues that the state is in some cases the problem, because it has not allowed the correct policies to be implement. However, the state is also the solution as it will implement the right policies which will be carried out to improve an economies development (Kiely, 2005). Therefore, hyperglobalist state, that globalisation is the beginning and the end of the nation state and the denationalisation of economies, which will lead to economic boundaries becoming irrelevant and national governments will not control their own economies, but instead facilitate connections between parts of the world through supranational organisations such as the EU (Larner, 2000). There are a number of reasons why one would not expect this approach hyperglobalism to promote rapid growth. Firstly it gives rise to a problem of insufficient demand, lowering of both real wages and public spending. Secondly it creates instability on the macroeconomic level by renouncing state counter-cyclical spending and taxation policies, by reducing the social welfare programs and more flexibility with public regulation of the financial sector. Thirdly, the approach teds to intensify conflict which can influence and discourage capitalist investment (Kotz,