Page 347 - DPOL202_COMPARATIVE_POLITICS_AND_GOVERNMENT_ENGLISH

Comparative Politics and Government

Notes a world class thinker, maker and trader, by using its greatest assets: its concepts, competence
and connections.
• The World Bank reports that integration with global capital markets can lead to disastrous
effects, without sound domestic financial systems in place. Furthermore, globalized countries
have lower increase in government outlays and taxes, and lower levels of corruption in their
governments.
• One of the major potential benefits of globalization is to provide opportunities for reducing
macroeconomic volatility on output and consumption via diversification of risk. The overall
evidence of the globalization effect on macroeconornic volatility of output indicates that although
direct effects are ambiguous in theoretical models, financial integration helps in a nation’s
production base diversification, and leads to an increase in specialization of production.
However, the specialization of production, based on the concept of comparative advantage,
can also lead to higher volatility in specific industries within an economy and society of a
nation.
14.5 Key-Words

1. Globalisation : Globalisation in a literal sense is international integration. It can be
described as a process by which the people of the world are unified
into a single society.
2. Trans-national State : Involving or operating in several nations or nationalities; Multinational
corporations.
14.6 Review Questions

1. What do you mean by the term Economic Globalisation? Discuss.
2. What are the major policy concerns of the less developed countries towards the current globalisation
process?
3. Discuss the general receptions of the less developed countries towards globalisation?
4. What are the demands of the less developed countries in respect of trade and investment in the
current phase of globalisation?
5. Explain how globalisation affects developed countries.
Answers: Self-Assessment

1. (i)(a) (ii)(d) (iii)(c) (iv)(a) (v)(c)
14.7 Further Readings

1. B. Ramesh Babu ed., Changing Global Political/ Ideological Context and Afro-Asia:
Strategies for Development (New Delhi: South Asian Publishers, 1996).
2. Harry Magdoff, Globalization: To What End? (New York: Monthly Review, 1992).

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