The global economy in the globalization process

A stimulus word characterizes the current world economic-political discussion: “Globalization”. The term is on everyone’s lips, triggers highly different reactions and must serve as the cause of many problems and worries. The proponents connect with him downright euphoric expectations, what z. For example, global cooperation, prosperity and world peace. For the opponents of the term is associated with fears, z. For example, with the fear of unemployment due to relocation of production to low-wage countries or the fear of welfare cuts and global environmental destruction. They criticize u. a. that the companies operating world-wide can escape all national control and consider this a cause of possible economic and political instability.

As a result of subjective assessments, these contradictory judgments are for the most part only partially covered by real facts. This is not least a consequence of the fact that the term “globalization” is rarely clearly defined, which is why it must also be used to explain very different experiences. However, one thing is clear: no one today can escape the process of globalization. We all have to deal with him.

Global economic interdependence is in principle nothing new, since the exchange of goods has always been an important element in relations between states. What is new about globalization, however, is the dynamics, intensity and scope in which cross-border economic activities take place.

“The driving force of globalization is capitalism with the free play of market forces – the more powers are left to the market and the more a country opens its economy to free trade and competition, the more efficiently and dynamically it becomes. Globalization in this context means the spread of market capitalism to almost every country in the world. “

Economic globalization takes place on several levels and markets.

Globalization on the goods markets. To the

To exploit the advantages of the international division of labor, barriers to trade were increasingly reduced worldwide after the Second World War. International contracts to remove barriers to trade, such as As the GATT agreements, led to a hitherto unknown expansion of world trade. In 2006, for example, the volume of world exports was 26 times higher than in 1950, while the world economic output only increased eightfold and the domestic production, from which the export goods originated, increased only fivefold.

These values are, on the one hand, an expression of the intensified international division of labor; on the other hand, they illustrate the “pacemaker role” that trade plays in global economic development. More recently, however, “traditional” foreign trade in metals has been increasingly supplemented by trade in services.

A foreign key engine of direct investment Globalization is the foreign direct FDI (G) investment ADI, which has increased particularly since the 1980s. Initially, world trade and direct investment developed in step with one another, evidence that direct investments were primarily export-accompanying activities at the time, has in the meantime become an independent factor in the international division of labor.

More and more companies are taking advantage of the cost advantages offered by other countries. In the meantime not only sales are globalized, but also production.

The development of global economic links in the financial sector is also proceeding with extraordinary dynamism. This tendency on the financial markets is mainly due to the liberalization of capital movements and the advances in modern communication technology. Today, they enable companies and private investors to place their assets worldwide where it generates the highest returns. Gigantic sum hunt virtually without time delay and transaction costs around the globe. GATT In 2007, an average of US $ 5,000 billion was traded daily.

Occasionally one gets the impression that globalization has fallen from the sky and an uncontrollable destiny. In reality, however, it was the interaction of several cases that triggered and controlled the modern globalization process.

Economic causes. Foreign trade liberalization, d. H. the dismantling of trade barriers by GATT and the WTO and of foreign exchange and foreign trade

Restrictions on capital movements and the de-regulation of national economies, such as The dismantling of state regulations and the privatization of former state-owned companies were major economic causes of globalization. The decisive maxim for liberalization and deregulation is that the state should only play a subordinate role in economic life. Ultimately, only the forces of the free market would be needed to regulate all functions of national and international economies on a regional and global level. This is where the criticism of many opponents of globalization comes in.

Of decisive importance for the growth of the world trade were the cost reductions in the transportation industry. The development and improvement of means of transport, eg. As faster modes of transport or the use of standardized containers that allows a closed chain from the sender to the recipient without time-consuming and kostenspieli¬ges reloading have to facilitate the transport over long distances to simplify and cheaper. Today, goods transports can be processed within hours, for which earlier generations often needed months.

Advances in telecommunications and message delivery. Innovations, such. As sat-tellitenverbindungen or the transmission and storage of information (Optoelektro¬nik), have made it possible to span the world with a dense communication network, so that information and knowledge can be made available anywhere in the world in a matter of seconds. In this way, transaction costs can be reduced and companies are enabled to work 24 hours a day, 24 hours a day, at different locations around the world. B. accelerate development and production processes.

Political causes. The collapse of socialism and the end of the Cold War not only led to a reduction in the political tensions in the world, but also to a reorientation of the formerly socialist state-trading countries into market-economy structures. This opened markets for people, goods, services and capital. In addition to the Central and Eastern European countries (CEECs), the emerging and developing countries also increasingly appeared on the world market and thus gave important impetus to world trade. In particular, China is expected to become the largest exporter in the world in 2008.