Conclusion
Although the post-war period of development across the globe was designed to improve global participation in the emerging world markets, the processes and structural forms that were established have served to enrich the dominant economies, with reduced benefit flowing to those in under-developed economies.
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Reviewing the key components of how global economy developed over the recent past, it is clear how the "sum" turned out to be what we regard as "globalisation." |
The Free Enterprise system, and terms of trade promoted industrial integration in cheaper market systems, providing transnational corporations with a docile, inexpensive workforce, fewer legislative requirements. Also there was reduced government scrutiny because nations competed to retain industry with the associated benefits in terms of reduced welfare, new infrastructure and improved balance of trade.
Technological developments are part of the globalisation process derived from research aimed to improve competition and increase market access.
Although there have been many measures taken to improve the benefits of global trade to the developing world, these are unlikely to alter the fundamental relations, which underpin these measures.
The emergence of altered power available to democracies, because of the mobility of TNC's, has potential to cause conflict. Governments, which are compelled to agree to trade terms, may face loss of power if their decisions prompt a voter backlash.
The International Monetary regulators have shown that they do make errors, and that when crises emerge the solutions will favour dominant economies. Also, it is apparent that the flexibility of these new market forces, produces new hazards for financial management, at all scales.
Multinational Corporations have displayed a lack of international citizenship in environmental management, worker health and safety, child exploitation and responsible consumer marketing.
Although these enormous companies have significant resources and flexibility, it seems that there are considerable concerns about the implications of the current trends for International Trade. It is likely that their current economic freedom may soon be curtailed.