1. Globalization

2. Economic Globalization: David Ricardo and Circular Flow
Households, firms, government; rest of the world
Factor market (land, labor, capital, entrepreneurial ability; rent, wages, interest, profit)
Product market (goods and services, revenue)
Trade as technology: Iowa car crop and creative destruction
Comparative advantage

3. Modernization vs. Dependencia
Dependency theory: avoid dependence 1st world capital, tech, expertise neo-mercantalism: import-substitution industrialization (Mexico) and export-led industrialization (China)
Confirmation: Asian Contagion
“Sustainable development”: 1st world development questioned (cultural + social impacts; environmental impact; “free trade butters” hypocrisy)
“Decoupling” (not so much)

4. Corporatism vs. Pluralism
Small # groups systematically recognized in policymaking (tripartite decision making—labor, biz, gov’t)
Authoritative peak associations for diff. sectors economy
Interest group unified w/in selves + cooperative w/others
Centralized, monopolistic interest groups
Liberal corporatism: consensual policy-making
Hierarchy (follow leader’s decisions) w/in group
Compulsory/near-universal membership
Decisions made by few leaders of group + gov’t officials (little input)
Stable relationships w/gov’t
Limits power civil society + limits legitimate action/advocacy to state controlled institutions
China, Mexico, Russia
“Neo-corporatism” in Europe

5. Costs of Globalization
Erosion state sovereignty
Outside pressure conform global norms
Internal pressure for autonomy (decentralization), secession, disintegration
Vulnerability actions others (NGOs, MNCs, WTO, IMF, World Bank, UN, etc.)
Cross-border/international problems (crime, disease, environmental, etc.)
“Race to the bottom”: Economic growth w/out development; internal inequality
Problems of rapid industrialization + urbanization
Women hurt more by transition (competition + liberalization reduction social welfare; undercuts subsistence ag., social constraints on new jobs, exploitation in cities/factories)
“Americanization” + cultural/political backlash (Nigeriazation of oil industry)

6. Benefits of Globalization
Interdependence cooperation w/in global/regional institutions (integration)
Rapid economic growth
Global products + services + information
Spread democracy + human rights
Increased ability organize w/in + across borders
Empowerment non-state actors
New avenues political access, redress grievances, voice
Global citizenship

7. Globalization Graphs Supply and Demand, consumer and producer surplus
Comparative Advantage (lowest cost of production)
Exchange rates (derived demand) and balanced trade
Interest rates