Globalisation Globalization

To what extent is globalisation economically determined?

Introduction:

Waters (2001) defines globalisation as a social process where the constraints of geography on economic, political, social and cultural arrangements diminish. The idea of globalisation is a clear target for ideological suspicion. It seems to justify the spread of western culture and capitalist society which propose that there are forces operating beyond human control and working to alter the world. Karl Marx states that globalisation has caused a dramatic increase in the power of the capitalist class because it opened new markets for it. Indeed, the discovery of America and the advent of navigation routes to Asia founded a ‘world market’ for modern industry. The bourgeoisie took advantage of such opportunity where they could expand a market for their products across the globe. (Waters, 2001)

Globalisation began at the time of colonisation and the industrial revolution. This was the start of globalisation; it briefly stopped during the First and Second World War because most of the industrial nations were involved in both wars. The current process of globalisation is created by the role of economy in globalising the world. It is very important to apply Marx’s theory of globalised capitalism in order to understand how the economy can produce globalism. Globalisation is economically determined through the establishment of international organisations and companies which function multilaterally by members from all over the world. The most important ones are the World Trade Organisations, International Monetary Fund, and Corporations. This essay explores how the economy plays a major part in shaping globalisation by revealing this role in areas like Trade, Finance a...

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... to have the amendment ratified, the IMF and the US treasury remained champions of capital account liberalisation until the subprime crisis struck in 2008. The IMF continued to goad countries it dealt with to remove domestic impediments on international finance, and the United States pushed its partners in trade agreements to renounce capital control ” (Rodrik, 2011, p.95)

This statement unmasks how the pressure from this organisation and America led to the application of this new policy in non capitalists countries. Moreover, it shows a flaw in this system which caused an international crisis. For example in 2008, many developed nations experienced such confusion in the markets when a lot of people were made redundant in America and Europe. Those employees later struggled in paying their mortgages to the banks. Most of the capitalist institutions, corporations in