Economic Globalisation Essay Example | Topics and Well Written Essays - 2000 words

Economic Globalisation - Essay Example Opponents, however, are more likely to view globalisation as a nefarious plot for the global promotion of the capitalist interests of multinational/transnational corporations culminating, not only in the increased poverty of LDCs but, in the subjugation of nation-states to multinational corporations. While conceding that both perspectives are exaggerated, the following paper shall, through a review of the definition of economic globalisation and the role of global trade and multinational corporations therein, establish economic globalisation as primarily favouring the capitalist interests of transnational corporations. Globalization, by the very nature of its definition as the globalisation of capital, favours capitalist interests, is founded upon the promotion of free trade and actively promotes the interests of multinational corporations. ... Of all the various definition forwarded for globalisation the most accurate, and comprehensive, is probably that forwarded by Held and McGrew (2002, 249-250) and which maintains globalisation to be an economic phenomenon whose intent is the globalisation of capital and the imposition of a capitalist economic agenda upon the International Political Economy (IPE). Globalisation, according to the latter definition, is the removal of capital controls to facilitate the unobstructed movement of funds and resources across national borders (Soros, 1998). Such globalization of capital is further significant because it implies reduced control over trade, foreign investment and multinational corporate activities. As stated by the pro-globalization economists, the removal of capital controls implies, "not only an increase in productive capacity but also improvements in methods of production and other innovations; not only an increase in wealth but an increase in freedom" (Soros, 1998). As may be inferred from the presented definitions, economic globalisation is the removal of artificial barriers to trade, involving the imposition of capitalism upon the global political economy and, as such, ultimately serves the interests of multinational corporations through the facilitation of their capacity it engage in trade, as in the unfettered movement of capital goods across national boundaries. Consequent to economic globalisation, and bearing in mind the stated definition, "The modern system of independent nation states and distinct national economies is being replaced by a single transnational political economy. Power and authority are steadily shifting to global institutions and corporations. National