Theory of globalization: fundamental Basis

Abstract

Globalization is a theory whose aim includes the interpretation of the current events on the international sphere in terms of development, economic conditions, social scenarios, and political and cultural influences. Globalization, as a set of theoretical claims, underlines especially two main increasing trends: (a) worldwide active communication systems; and (b) fluent economic conditions, especially high mobility of financial resources and trade. Through the process of globalization, the assumption is that more nations are depending on worldwide conditions in terms of communication, the international financial system, and trade. Therefore the world scenario is more integrated in international economic transactions (Sunkel: 1995; Carlsson: 1995; Scholte 1995). Effects and influences from these 'integrational aspects' can be studied from two major perspectives: (a) countries´ external level -or systemic approach-; and (b) domestic or internal conditions within nations -sub-systemic approach. In this last mentioned case, the units of analysis will be those corresponding to national variables of economic growth, or social indicators. In terms of the globalization process that is taking place under current worldwide economic conditions, two main topics in international political economy are: (a) the structure of the international economic system; and (b) how this structure has changed (2). They can be addressed through the application of the theory of globalization from the development perspective. This globalization approach suggests that the structure of the global system, and the roles that countries play within the international division of trade and labor, is crucial in understanding a wide array of social, political, and economic changes within particular countries. The basic claim is that international connections, roles, and relationships are important variables in any analysis which tries to explain various dimensions of development -economic growth, for example- trade, financial links and communications among countries.(3) The fundamental premise of globalization is that an increasing degree of integration among societies plays a crucial role in most types of social and economic changes. This premise is widely accepted. However, there is much less consensus on its fundamental organizing principles and laws of motion. Neoclassical economic theories that are based on comparative advantage (Klein, Pauly and Voisin 1985), international relations approaches that stress geopolitics (Keohane 1993, and Thompson 1991), and world-systems perspectives that emphasize 'unequal exchange' (Amin 1989; Frank 1979; Wallerstein 1991) offer contrasting models of the international system.