Points covered: - What is “globalization”? - End of the nation-state? - Race to the bottom

What is it and is there reason for scepticism? Hirst, P., Thompson, G. and Bromley, S. (2009). Globalization in Question, 3 rd edition (Cambridge: Polity Press).

: Value of exported goods increased from US$58bn. to $10159bn. Value of imported goods increased from $66bn. to $10511bn.

Between 1948 and 2005 some regions’ share of world trade declined: Africa’s (excl. S. Africa) share decreased from 7.3% to 2.9% (exports) and 7.6% to 2.4% (imports).

Large industrial countries (US, UK, Germany, France, Japan) are only just catching up with their ratio from There is nothing unprecedented about the current trade : GDP ratio.

What is mobile? 1) Foreign direct investment (FDI) 2) Finance 3) Goods (trade)

What is not mobile? People: there is far less mobility of people today than in the late 19 th and early 20 th centuries.

Developed countries accounted for 84% of world FDI outflow (2006). Where is it going (inflows)?

Multinational companies (MNCs) are the main source of FDI to developing countries. What is the impact on host countries in the developing world?

MNCs very often have a positive effect on host developing countries via: 1) Technology transfer 2) Skill enhancement 3) Increased exports 4) Employment

Employment effects of MNCs: a) Job creation b) Higher wages than domestic employers c) Better working conditions d) More benefits

What is FDI? Includes Merger and Acquisition activity (M&A): $880 billion in 2006 (or 72% of FDI total).

Since FDI figures might mislead, do net financial flows provide a better picture?

Is the nation-state powerless against the power of international capital?

Ingredients of the RTB (Mosley, pp ): a) Competition amongst ‘jurisdictions’ for mobile resources (capital). b) Jurisdictions create policies favourable to international capital.

Symptoms of the RTB: c) Policy convergence across jurisdictions. d) Policy reaches lowest common denominator (the ‘bottom’). e) Undermining democracy.

Mosley (pp ): Little evidence of a systematic RTB although some evidence that certain countries and sectors are affected adversely. Why?