Two such mechanisms are particularly relevant to the EU’s trade policy as used to manage globalization. First, the empowerment of international institutions in the field of commercial diplomacy has played a crucial role in such management. The multilateral system is far more powerful in the area of trade than in any other policy area. Centered on the World Trade Organization (WTO) and trade rounds such as the ongoing Doha Round, the multilateral system of rules surrounds and impinges on the EU’s commercial diplomacy. Multilateral institutions impose rules which apply to all states and thereby create order. They help to tame the “anarchy” of the international system. The WTO is a particularly key multilateral institution because it has a powerful dispute settlement regime and thus can impose a degree of economic order. (Zangl 2008) However, its predecessor, the General Agreement on Tariffs and Trade (GATT), was also an important multilateral institution. It was strengthened when the EU was established because it was the only institution which brought the EU and the US together to negotiate over trade. It became a key institutional fulcrum for US-EU trade relations.
In recent years, the globalization of capital markets and advancement in information technology have increased international economic interdependence in areas such as stock prices and economic cycles. Bessler and Yang (2003) employed error correction modeling to analyze the interdependence of stock prices in nine of the world’s major stock markets, located in Canada, France, Germany, Italy, Switzerland, Japan, Hong Kong, the UK, and the US. They concluded that US stock prices have made a sustained and powerful impact on stock prices in other countries over the long term. Yang et al. (2006) examined the interdependence between four emerging Eastern European stock markets and those in the US and Germany. Their results indicated that long-term price relationships and dynamic price transmission in these markets strengthened after the Russian financial crisis, but that Germany had no noticeable influence on emerging stock markets in the wake of the crisis. Chen, Firth, and Rui (2002) studied the interdependence of stock prices in Central and South American countries, namely, Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela. Using error correction modeling, they determined that the Asian and Russian financial crises did not make a dramatic impact on the interdependence of Central and South American stock prices; however, but they hold that long-term cointegrating relationships disappeared after the Russian crisis. Focusing on Taiwan, Chang and Nieh (2001) also used error correction modeling to analyze the interdependence of stock prices in Taiwan and three trading partners, Hong Kong, Japan, and the US. They identified one cointegrating vector for the four markets and determined that the Japanese stock market, rather than the more distant US stock market, exerted the strongest influence on the Taiwanese stock market. In most cases, the above studies obtained results indicating the existence of cointegrating relationships among stock markets in different countries over the long term.
Despite the fact that globalization has raised new dilemmas and brought back old problems, it also creates several possibilities for positive change, ranging from depolarization and more interdependence among nation-states to the strengthening of the position of international organizations by increasing their democratic legitimacy and ability to apply international law in the capacity of mediators in conflicts. In this scenario, the UN, whose role has been largely marginalized over the past decades, could become a key player. If nation-states were willing to attribute real power to the UN, this supra-national organization would be in a position to keep other powers, both public and private, in check. This shift would create a framework for a pluralist, multi-polar world order, and a platform for universal values in favor of peace, human rights, democracy, citizenship, public health care, poverty alleviation and environment conservation.
Declines in biodiversity and abundance of coral reef fishes, especially those that perform critical ecological functions, may further reduce resilience of coral reef ecosystems. Concern regarding the loss of key functional groups on coral reefs mostly centers on herbivorous fishes, and particularly grazing species (Bellwood et al. 2004), which play a critical role in controlling macroalgae that might otherwise limit coral recruitment and recovery (Hughes et al. 2007). Hughes et al. (2007) showed that exclusion of fishes, led to rapid overgrowth of macroalgae. High cover of macroalgae did not directly undermine the local abundance of scleractinian corals, but did prevent ongoing coral recruitment necessary to replenish adult corals lost to bleaching (Hughes et al. 2007). These findings point to the importance of maintaining intact reef fish assemblages, but it is unclear exactly which fishes were important in maintaining low macroalgal cover, and therefore, high coral cover. Strong interdependence between fishes and corals is often assumed, rather than clearly established (Pratchett et al. 2008), and it is likely that the functional importance of some fish and corals has been underestimated.
indicators they were near the bottom. Rapid growth in the recent past and global integration of China first, and of late that of India, has had a marked favorable impact over these two economies. They are considered different from other developing, emerging-market or transition economies because not only they are large, populous economies but also have become the most rapidly growing economies in the world.. Their rapid growth spell made them into prime catch-up candidates, therefore, they are frequently referred to as the ‘mega-emergers’. In 1980 they accounted for a paltry 2 percent of global output, which almost quadrupled to 7 percent in 2005. It is well within the realm of probabilities that these two economies achieve a good bit of convergence with the mature industrial economies in the foreseeable future (Section 2.2). However, notwithstanding the rapid growth, their per capita incomes are still low. According to statistics published by the World Bank in 2008, China’s per capital income was $2,360 in 2007, while that of India $950. These per capita incomes are far lower than those of the United States ($46,040), United Kingdom ($42,740), Japan ($37,670) and Germany ($38,860). In 2007, average per capital income of the Euro Zone economies was $36,329. 10 This income disparity between China and India on one hand and the industrial economies on the other portends to the possibility of large gains from trade for both China and India. They could earn large benefits from the gap in wage levels, adjusted for productivity. The two economies have recently started exploiting these possible gains from trade. In 2007, China’s GDP was $3,280 billion, at market exchange rates, making it the fourth largest economy in the world and India’s GDP was $1,170 billion, making it the twelfth largest economy in the world. 11 When economies of these sizes begin to integrate globally, they are bound to have a large impact on global trade and financial flows as well as the pace of globalization. Indications are that their future roles in the global economy are going to be larger. According to the projections made by Maddison (2005), by 2030 Chinese economy will account for a little more than 18 percent of the global GDP, measured in purchasing power parity (PPP) terms. At this point, it will have overtaken the US economy. In this projection exercise, India’s GDP was about half the GDP of China.
Globally, Muslims are part of diverse cultures, socio-economic classes and ethnicities. They comprise the second most populous religious demographic in the world. Globalisation has intensely positive and negative connotations in the Muslim world. Globalization has given many Muslim populations access to greater knowledge and increased communication. 9 Muslim world in the new trend of global flows are significantly facing various Challenges. On the one hand, they, many people, many politicians, religious leadership and especially those are called as fundamentalism; tend to preserve Islamic traditions as an essential and stable lifestyle. According to a poll about global attitude toward globalization, the picture that emerges from the pattern of responses to the full set of survey questions among
Yet equally at a broader level, a key concern for geographers has been how economic globalization continues to produce a changing global economic map with economic activity growing and declining across different national economies and regions. The major characteristic of this geographical change has been what Peter Dicken calls a ‘global shift’ in the last forty years, beginning in the 1970s and which has become more and more pronounced in recent decades (Dicken 2010). During the 1970s and 1980s, it became evidence that a number of newly-industrializing countries (NICs), mainly in south-east Asia had rapidly growing
positive or negative impact on the lives of women? There are no easy answers to these questions. Generally, it has been submitted that globalization affects women differently in different parts of the world and that some women are more vulnerable than others (poor/marginalized women in affluent nations; women of the Global South). Moreover, a common understanding is that the impact may include both positive and negative aspects (Frostell 2002; Gray, Kittilson, Sandholtz 2006; Sánchez-Apellániz, Núñez, Charlo-Molina 2012) and no scholarship on globalization and women takes a full positive view.
This paper examines the contribution of common external shocks and economic interdependence to stock market comovements among Central and Eastern Euro- pean economies during the Russian crisis. It also investigates the extent to which country-specific shocks spread across these countries beyond the normal channels of interdependence during episodes of financial market turbulence. Different measures of U.S. monetary policy ranging from market-determined interest rates to policy in- terest rates and measures of monetary policy surprises show that the measurement of common external shocks is not innocuous. The results indicate that common external shocks affect Central and Eastern European economies to a significant extent. More- over, the transmission mechanism of country-specific shocks changes in the face of abnormal high-volatility events. The latter result contradicts some existing empirical evidence.
The next section reviews the evidence on both globalization and inequality over the past two decades, and how they have evolved across regions and income groups. The following sec- tion discusses the channels through which trade and financial globalization may be expected to influence inequality within countries and analyzes the empirical evidence to identify the main factors explaining changes in inequality. The concluding section offers some policy sug- gestions. Box . discusses in more detail the analytical and measurement issues arising from different methodologies used to collect and summarize inequality data across countries and regions. Box .2 looks in more detail at what might be learned from more in-depth analyses of individual country experiences and discusses how the conclusions of such studies do not easily lend themselves to generalization across countries. 6
happened historically over the past couple of decades. This will be the main focus of this paper. To examine policy configurations in the context of international macroeconomics, this paper focuses on a central hypothesis in international finance, namely the “impossible trinity,” or the “trilemma.” The hypothesis states that a country may simultaneously choose any two, but not all, of the following three goals: monetary independence, exchange rate stability, and financial integration. This concept, if valid, is supposed to constrain policy makers by forcing them to choose only two out of the three policy choices. Given that Asian emerging market economies have collectively outperformed other developing economies in terms of output growth stability, it is possible that their international macro-policy management, determined within the constraint of the trilemma, has contributed to preparing these economies for higher output vulnerability- possibly exacerbated by recent globalization.
Compared to the baseline scenario, the model specification for the “accelerated globalization” scenario yields differences for the growth rates of imports and exports that vary widely between nations (Table 14). Here neither the growth rates of foreign trade components nor the course of development in the globalization index for the ex-post time period is decisive on its own; what is key, instead, is their interaction. For example, the Baltic states exhibited import growth rates of at least 6.7 percent per year between 1990 and 2011. At the same time, the 1.4 point average annual increase of the globalization index came out relatively high compared to other world countries. As a difference to the baseline forecast, how strong the import growth turns out in relation to the increase in the globalization index is crucial for the scenario parameters, since imports are exogenized through a specification in the model.
As this research focuses on indicators of mortality to highlight an important side of global health outcomes, it is interesting to look at some of the drivers directly related to mortality (or factors linking globalization and mortality) identified in the current body of research in this field. Martens  claims that increased income levels can result in a decrease in mortality rates, which ultimately impacts life expectancy rates positively. Burns, Kentor, and Jorgenson  focus on infant mor- tality and discuss a country’s level of internal develop- ment and the related dependencies on the world economy (affecting domestic institutional structures) as a main driver. However, the level of a country’s develop- ment and the resulting impact on infant mortality is not fully uncovered. Other factors they found to be related to infant mortality are the macro level effect of export commodity concentration, GDP per capita, health expenditures per capita, secondary education, and organic water pollution. They identified several mediat- ing factors between global dependence and infant mor- tality: quality of water and health care, level of internal development such as GNP per capita, the role of ecol- ogy (pollution and misuse of land) as well as public health factors (lack of resources for public health can be
According to many opinions, globalization is advancing and, should the underlying trends of recent decades continue, the world economy may be expected to achieve high levels of IEI in the near future. The analysis carried out in this study corroborates this perception, based on instruments that enable careful interpretation of the nature of the process and their driving factors, contributing also to measuring their speed and, above all, to characterizing how economies have evolved in terms of degree of openness, degree of connection, and degree of integration. The point of departure for the research was the axiomatic definition of a Standard of Perfect International Integration (see Arribas et al., 2007), the arrival point for a world economy in which all countries would trade with no frictions, costs or any other type of impediment. Building on the measurement of the evolution from 1967 to 2004, we analyze the dynamics of the integration process with a set of techniques extensively used by the empirical literature on growth, in order to project those tendencies which have existed over the past decades onto the future and to assess the perspectives for IEI.
The decline of capital taxation is associated with e ciency gains. We show that, when agents are heterogeneous, equity concerns can change the policy recommendation driven by e ciency. Given the empirical evidence on the roots of heterogeneity inside each country, either in developing or developed economies, the elimination of capital taxation would lead always to a decline in inequality and to an increase of welfare of the poorest, in a small open economy acting unilaterally. On the contrary for a group of open economies following the same policy, the opposite occurs: with the elimination of capital taxation inequality worsens and it hurts the poorest of each country. Therefore globalization can be important to support a positive tax on capital.