GLOBALIZATION zIssue: Just how new and different??? zKey components of a position on this issue.

1. Rooted in ‘long 16th C’ changes zTrade pattern changes zfoundations for industrialization znew international division of labor yCore vs. Periphery

2. Growth of international investment zTransnational Corporation (TNC) as one product zgradual shift from trade to production

3. Late 20th C distinctiveness zInternationalization processes create SHALLOW INTEGRATION zGlobalization processes create functional integration and DEEP INTEGRATION

4. Need to examine Production Chains zTNCs coordinate and reorganize

5. Role of groundwork laid post WWII zBretton Woods system yadoption of free trade ytieing of currencies to $US to provide financial lubricant ycreation of an international institutional framework xInternational Monetary Fund xWorld Bank xGATT > WTO

6. No diminishment of geographic clustering

Useful Sources zMichael Webber and David Rigby The Golden Age Illusion zDean Baker, Gerald Epstein and Robert Pollin, eds Globalization and Progressive Economic Policy.

Production zEconomic growth ysix times from 1950 to 1990 yjust under 3 times per capita zunevenness of growth

Average annual growth rate of real GDP,

Pre - vs. Post -1974

Why the break in 1970s??? zOPEC quadruples oil prices in 1973 zother commodity prices had been rising steeply zacceleration of labor costs in industrialized countries zincreasing instability of international monetary system

Economic Growth over the Longer Run

Global Shifts in Production

Other shifts zDecline in US share zrise of Japan zrapid decline in shares of Eastern Europe since 1990 zmost of developing country growth shown by Asian NIEs and ASEAN4

International Economic Integration Trade

Merchandise exports as Percent of GDP

Rate of Change in Merchandise Exports/GDP

Manufacturing exports as percent of total exports

Shares of World Manufacturing Exports by region,

Capital Flows--Foreign Direct Investment

The Patterning of FDI