Distinguish between economic globalisation and political globalisation.
Economic globalisation refers to the process whereby all national economies have, to a greater or lesser extent, been absorbed into an interlocking global economy, meaning that no national economy is now an island. In this global economy, production is internationalised and financial capital flows freely and instantly between countries. However, economic globalisation should be distinguished from internationalisation. The latter results in ‘shallow integration’, in that increased cross-border transactions lead to intensified interdependence between national economies, while the former marks a qualitative shift towards ‘deep integration’ as territorial borders are transcended through the construction of a consolidated global marketplace for production, distribution and consumption.
Political globalisation, by contrast, is associated with the shift of decision-making from states to international organisations. Such organisations may have regional jurisdiction (such as the EU) or global jurisdiction (such as the UN). Most international organisations are modelled on the principle of intergovernmentalism rather than supranationalism, in that states take collective action without sacrificing national sovereignty. Political globalization is often seen as a means of managing or regulating economic globalisation. However, political globalisation could legitimately be understood to refer to the global spread of political ideas (such as human rights) or of political structures (such as liberal democracy).
Economic globalisation refers to the process whereby all national economies have, to a greater or lesser extent, been absorbed into an interlocking global economy, meaning that no national economy is now an island. In this global economy, production is internationalised and financial capital flows freely and instantly between countries. However, economic globalisation should be distinguished from internationalisation. The latter results in ‘shallow integration’, in that increased cross-border transactions lead to intensified interdependence between national economies, while the former marks a qualitative shift towards ‘deep integration’ as territorial borders are transcended through the construction of a consolidated global marketplace for production, distribution and consumption.
Political globalisation, by contrast, is associated with the shift of decision-making from states to international organisations. Such organisations may have regional jurisdiction (such as the EU) or global jurisdiction (such as the UN). Most international organisations are modelled on the principle of intergovernmentalism rather than supranationalism, in that states take collective action without sacrificing national sovereignty. Political globalization is often seen as a means of managing or regulating economic globalisation. However, political globalisation could legitimately be understood to refer to the global spread of political ideas (such as human rights) or of political structures (such as liberal democracy).