Global Trade



Key Term: Global Trade

Globalization is the process of world populations becoming interconnected and interdependent (Logsdon and Wood, 2005, pp. 55-67). Globalization creates four major transformations. First, globalization stretches social, political, and economic activities across the frontiers of communities, nations, regions, and continents. Second, globalization intensifies the magnitude of the flows and networks of trade, investment, migration, and cultural transmission (Radin, 2004, pp.415-47). Third, with the development of new worldwide transport and communication systems, globalization speeds up global interactions and diffusion of goods, ideas, capital, information, and people (Robinson, 2001, pp.157-200). Fourth, the pace of the first three transformations deepens the impact of distant events on everyday life. This deepening involves the rise of awareness that increasingly many parts of everyday life are connected with things that happen at a distance.

Review of Articles

1. Logsdon, J. and Wood, D. J. Global business citizenship and voluntary codes of ethical conduct. Journal of Business Ethics vol. 59 no. (1)(2005). pp. 55-67.

2. Mittelman, J. H. (2002). Making Globalization Work for the Have Nots. International Journal on World Peace vol. 19. no. (2). pp. 3-4.

3. Radin, T. J. (2004). Global codes of conduct: Role models that make sense. Business and Society Review vol. 109 no. (4). pp. 415-447.

4. Robinson, W. (2001). Social theory and globalization: The rise of a transnational state. Theory and Society vol. 30 no. (2) pp. 157-200.

The global economy has come from the world economy a system in which nationally organized circuits of production and exchange formed the backbone of economic activity (Radin, 2004, pp.415-47). The new global economy which involves a massive decentralization of production processes and a simultaneous centralization of command and control processes—has defined the new circuits of accumulation (specific constellations of social relations that facilitate the extraction of private profit). One of the main reasons for increased global economic integration is the falling cost of communication and transportation. New modes of communication and transportation have helped to establish new modes of production and distribution networks. Now production is organized around networks that are flexible and highly efficient.

The process of economic globalization has been driven and justified by this ideology of shrinking the state. Some scholars believe that the state is no longer relevant because the real power has shifted to transnational capital (Robinson, 2001, pp.157-200). Other scholars, however, believe that the state is still relevant, although it is undergoing restructuring. Those who argue that the ...