25. Global trade and finance This chapter explores various economic aspects of contemporary globalization. This ‘supraterritorial’ dimension is described under headings of ‘global trade’ and ‘global finance’. I will cover the limits to economic globalization causing major problems in world politics.

Ⅰ. A globalizing economy The view of global economy is divided into three ways conceptions. 1. Cross-border transactions (1) skepticism about economic globalization (2) economic globalization is temporary 2. Open-border transactions (1) defined as part of long-term evolution towards a global society (2) yield prosperity, liberty, democracy and peace for all humanity in contrast with the protectionism

3. Transborder transactions (3) Recent history has indeed witnessed considerable opening of borders in the world economy trade sector – through the GATT, the amount of trade expanded currency sector – through the IMF, most states reduced or eliminated restrictions investments flows is getting mover liberal 3. Transborder transactions Human lives are increasingly played out in the world as a single place Globalization involves the growth of a transborder economy

Ⅱ. Global trade 1. Transborder production 2. Transborder products Through global sourcing, the company draws materials, components, machinery, finance, and services from anywhere in the world. 2. Transborder products A considerable proportion of trade now involves the distribution and sale of global goods, often under a transworld brand name such as Macdonald, Coca-Cola

Ⅲ. Global finance 1. Supraterritorial money Global finance has experienced its greatest growth since the 1980s 1. Supraterritorial money The growth of global markets have each encouraged and been facilitated by the spread of global monies. 2. Supraterritorial banking After 1973 following the petrodollar deluge, eurocurrency deposits and euroloans mainly proliferated.

3. Supraterritorial securities Globalization has also altered the shape of securities markets (1) Become more detached from territorial space <EX> eurobond, euroequity (2) Many investor portfolios have acquired a transborder character (3) Electronic interlinkage help surpraterriotrial securities 4. Supraterritorial derivatives Derivatives exchanges have proliferated worldwide since 1982 and much derivatives business has become relatively distanceless and borderless.

Ⅳ. Limits to economic globalization Many assessments of globalization are suffused with hype and exaggeration. So I will tackle four main issue with regard to globalization. 1. Irregular incidence (1) Globalization has not been experienced everywhere and by everyone to the same extent (2) Transborder markets and investments can be shown to have contributed significantly to growing wealth gaps

2. The persistence of territory It has involved but a small percentage of overall world production. In addition, many global products are prepared within a single country although their distribution extends world-wide 3. The survival of the state The expansion of transborder trade and finance has made claims of sovereign statehood obsolete, but the significance of states themselves. 4. The continuance of cultural diversity While economic globalization has weakened cultural diversity and national attachments in some respects, it has promoted them in others.

Ⅴ. Conclusion The growth of supraterritoritoriality remains a highly significant development in the contemporary world economy. But we also have to know well about theses limitations to economic globalization. The challenge for analysis is to tease out the interplay in economic globalization between territoriality and supraterritoriality, between territorial states and other governance arrangements, and between territorial identities and transborder affiliations.