Some perspectives on globalisation

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Authors

Brink, S.M.

Journal Title

Journal ISSN

Volume Title

Publisher

Faculty of Economic and Management Sciences, University of Pretoria

Abstract

Much has been written about globalisation. Something truly insightful rarely comes to light. This article is no such attempt, it merely attempts to reconcile disparate views and tie some loose strands on the subject of increasing international integration. More specifically, the features and implications of current trade and investment patterns are awarded attention. The prominence of technological innovation is emphasised, as is the role of FDI in the diffusion of technical progress. Globalisation has implications both for developing and developed economies; for instance, its effect on growth, the consequences for macroeconomic stability and the effect on income inequality - particularly for low-skilled workers. Trade invites arbitrage in social values; social tension and populist demands for protectionism arise from this. Also, globalisation heightens economic risk and while the pressure on governments to mitigate this rises, their ability to respond effectively is dwindling, eroding the social consensus required to maintain open markets.

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Keywords

Developed economies, Developing economies, Economic risk, Investment patterns, Trade models, Trade patterns

Sustainable Development Goals

Citation

Brink, SM 2001, 'Some perspectives on globalisation', South African journal of Economic and Management Sciences, vol. 4, no. 3, pp. 458-475. [http://www.journals.co.za/ej/ejour_ecoman.html]