One World? Julia Karmanova EBM2-62 G lobalization One World? Julia Karmanova EBM2-62

Main ideas: International economic integration reasons Globalization: driving forces Positive and negative views

Old news Development of production forces The rise of trade link The 50 years before the First World War - reductions in trade barriers and sharp falls in transport costs The First World War - period of fierce trade protectionism and restrictions on capital movement The Second World War – Bretton Woods system; GATT and WTO

Modern globalization manifests itself in production internationalization capital internationalization formation of the global infrastructure increase of the international migration of labor internationalization of impact of production and consumption on environment

Driving Forces Technology Liberalisation Information Social integrity Politics

Consequences of globalization Positive Better division of labour between countries It will allow firms to exploit bigger economies of scale Capital can be shifted to whatever country offers the most productive investment opportunities Negative There will be a “race to the bottom” Pressure to compete will erode the ability of governments to set their own economic policies Increased power of financial markets can cause economic havoc

There are obstacles to development of global integration Conclusion Globalization provides opportunities for addressing general problems of mankind There are obstacles to development of global integration