"The most important causes of globalization differ among the three major components of international market integration: trade, multinational production, and international finance" (941).
This piece explores the drivers of globalization. The author argues that it is not problematic to claim that globalization is changing the world; the biggest issue becomes anything other than that platitude.
"Throughout, I define globalization somewhat narrowly as the international integration of markets in goods, services and capital" (942).
"I examine four contending perspectives on the big picture: What explains the rapid pace of international market integration in recent decades?" (942). The first point of view claims that this global integration is not unique or new, as current integration is finally catching up to levels before WWI. "I argue, however, that notwithstanding the aggregate similarities between the two periods, core features of the contemporary world economy are without historical precedent" (942).
The second point of view is that of technological determinism. "The case for technologically determined view of globalization is far stronger with respect to international finance than to multinational production or trade" (942).
The third perspective: the costs of government closure from international trade are exclusively high and this promotes countries to open their doors to the benefits to be gleaned from increased economic interdependence. However, the author argues, "It is hard to argue that increasing opportunity costs of closure provide a persuasive account of the globalization of finance" (943).
The fourth point of view: "The final big picture perspective on globalization also accepts the critical role of government policy, but argues that the phenomenon is essentially a political construct that does not improve the economic conditions of society as a whole" (943). Has there been an ideological driver (maybe Reagan/Thatcher?) that pushed us in this direction?
The details of these arguments I did not document.
"Figure 4 summarizes my assessment of the contending big picture arguments about the causes of globalization" (975).
(976)
