Global Political Economy
The impact of the issue of globalization:
On the onset of globalization, theories arise as to the studies of globalization in its essence. One could be as thinkers of globalization that might agree on the three principles that leads to the study of globalization. One is liberalism in which people having these principles tends to go deeply on its basic concern to the development of his or her personal freedom and social progress. Likewise Neo-liberalist has it concerns on political view that emphasizes the importance of economic growth and asserts the social justice is best maintained by minimal government interference and free market forces.
The set of theories that take into consideration as to our basis of comparison is that, we could get into more detailed comparison. We could stand to the fact that our principles of providing the main task to assert that economy are very important. This followed the fact that minimal government interface and free market forces best maintain social justice. Looking back to the theory, “ Politics prevails over economics “ by Waltz (1999,700), we can assert that economics prevails over politics.
As a Marxist-Leninist, I could asserts that “law of the declining rate of profit”
(Encarta, Microsoft) is unconvincing. The reason I say so, because the mere fact existing of globalization will enhance a wide increase of economy. “Globalization has been has been the most outstanding characteristics of international economic affairs” (Vincent Cable, “The Diminished Nation- State; A study in the loss of Economic Power,” in what future in state? Daedatus124, no.2 (Spring 1995): 24). We don’t get lost of it since it is only the time when there is a slight decrease of econo0mic growth as well. But if you look into the recent view of our economy, it seems it is more defining rather than politics interest at hand.
Nowadays, the recent beliefs that the worlds still are on its determinants of economic affair, that is, national policies and domestic economies. Nothing to worried of since there was a great bloom of our economy. If one stand at its point to improve more the local economy possibly it will expand into a wide range of economic development.
History will tell that there was still a great interest to economic point of view to be still cultivating economy in its positive perspective. Looking back in the year 1987, the domestic economic development somewhat turns to be equal weights with that of international economy but that was only a minor importance. This was due to autonomous desires, self- contained, international political economy. But not so devastating enough that economy fluctuates as well. Nation economy as it is at ease nothing to worry on this date of crisis let say. This was just a little thing to worried of, since it is so normal enough economy experienced as such. The idea of such declining economy is just the results of so many principles that people think of deficit economy as well. Noting that this principles like the liberalist, Marxist and nationalist are perspective of the national economy. They are just trying to argue on their own point of view but the factual status of the economy as well. They tend to assert principles that people might think their assertion are really the mere fact of the economic situation but its not.
In did we can differ our own understand on the contemporaries that analyzes economy as defecting. We can still believe that nation state is the dominant actor in both domestic and economic affair. To analyze on the economic inquiry, the principles raised are very helpful to take a look on the nation state of economic condition. To note that both economic and political is the necessary factor to analyze the international economy as well. The mere fact that economy becomes deficit, it’s not proper to conclude right away as manner it will be since there so many factors to look into not just only the principles behind to considered though.
Changes In The World Economy:
Economy in World seems to be affected by American economic globalization. In world’s political economy with historical and theoretical insights characterized many contemporary conditions. Also current developments of American’s economy are placed on the top of the world’s history of economy. In fact American’s economy was put into landmarks for economic historical condition.
During the cool war of Americans and its allies, the Europeans and Japanese as well turns to be starts of economic functioning. That is because the allies become the subordinates in security reason so as to continue to develop the economy at that time. Thus after the cool war it booms the beginning of the blooming economy because American leaders and economist closed in to a very good cooperation to each other, main reasons why economy widely develop at that time. More likely the third world countries join ventures to the economic condition in America as well to facilitate and cooperate with the marketing system at that time. That is the less develop countries do contribute at their best in the world trade market. It began the blooming of per capital income in the trade industry as well.
“Economic globalization has entailed only a few key development in trade, finance and foreign direct investment by multinational corporations.”(Oxford: Polity Press, 1999). It was that global economic output is less as to the rapid growth of international trade. So in turns there was that a great expansion merchandise trade (goods), trade services, trade information and etc which is so positively a good hint that economy changes to very much develop at that time. Thus maintaining the essence of economic development is vastly inherited till the time of increased in other aspect of economy in the country.
In addition of the vast changes as to more development of the economy, we can also take into accounts a good thing in the system of transformation that said to be one of the determine factor of the vast development of the countries economy as well. There was that low cost of transformation that seems makes easy to the people to transport their products anywhere they want to bring these product of course of those a very high quality products as well. Top cite further example as well during the intense increased of economic development is that the existing expansion of the world trade and the great increased in the competition of the different countries trade and industries comes out to be a very remarkable one since the consumers and the export sectors benefited a lot of openness. The later improves their efficiency in the trade business.
The expansion of the global trade leads into a number of economic development. Since before the vast growth of economy in America underwent into its deficit and crisis beforehand, it seems at this time of global trade positive change brought the decrease of about 40% of the barriers in industry dropped. It also found out that national economies open to imports trade products as to the bearing of the deregulations and privatization. This remarkable change brought America’s economic expansion. Thus commodities brings into its lower cost that people, the consumers enjoys a lot of the result of the good changes of the economy as well.
The financials system of America improves a lot since there was that deregulation of financial and the creation of the new financial instrument went into a very good success. This much more improve the American’s highly integrated international financial system more advanced among the rest of developing nation as well. The volume of trade of foreign exchange was almost eightfold increases compared to before the time of crisis have experienced. If you do compared it to currency to Europe somewhat, the later is more less than American currency. Likewise the European and the other countries like East Asian countries experienced financial crisis. Lets take into accounts money currency in the Philippines turns to be very less currency compared to money currency in America. So the vast less comparison of money currency tells that it’s out of control. The mere fact is the results of globalization. Thus actual situation sees that other nation tends to be the major investor and the Americans becomes the largest home and host economy. There was a rose of industrializing countries that Americas will the leading nation to be the developing nation as compared to other developing countries like Europe. Actually America’s has it’s a large investment compared to other countries as mention. So America tends to invest a great portion of finance in the technological system as well. Actually the greatest portion of their investment has been in the services especially in the high tech industries such as automobiles and communication industries. Intact, communication is tradable that leads to new issue international commerce.
Conclusion and Analysis:
The history prevails that America has a vast experiences as to crisis of economy before
1987. But beyond the time, there was that rapid growth of the development in the
american economy. The blooming of America’s economy brought up the recovery of loses. The surplus of gains that America has helped to bring Capita Investment widened enough, so as it caters other services to subordinate countries at the same time. In fact now days, people thinks that crisis is just their own personal negative motives somehow brought about it’s own point of view. Thus the idea reverses on the point of view on Waltz. So we can believe that economy prevails over politics. More likely, a state of Americans economy can be explained as “Current developments are placed in historical and the perspective “(By: Gilpin, Robert).
I actually agree on the point of views presented by Gilpin, since a matter of fact if we look into America’s status compared to other countries say Philippines, I could say that America is very far in advancement as compared to Philippines. Many of Filipinos in reality would like to go USA for a greener pasture. This means that America is the answer of their dreams to have a better life as well. In real situations if you compare the currency in Philippines with that of America it seems Philippines is 50 times below money currency of America. It reflects the fact that Philippines are just subordinate to American country. Facing the fact America is a powerful country since they are more advanced among the many countries in the world. The economic condition as compared to underdeveloped countries is widely seen and easily traced that Economic Progress of America is vastly progressive.
Vincent Cable, “The Diminished Nation- State; A study in the loss of Economic Power,” in what future in state? Daedatus124, no.2 (spring 1995): 24
2. Vincent Cable, “The Diminished Nation- State; A study in the loss of Economic Power,” in what future in state? Daedatus124, no.2 (spring 1995): 24
3. By: Gilpin, Robert idea at (www.googles.com)