| In simple terms, the phenomenon of | | | | Embodying the Results of the Uruguay Round of |
| ‘globalization' is perceived as increased | | | | Multilateral Trade Negotiations in April, 1994 that |
| inter-connectedness of the world (Papers4you.com, | | | | developed the official foundation of first real concept |
| 2006). However there are three primary defining | | | | of borderless global economy (LeQuesene, 1996). |
| pillars of globalization that includes cultural, political and | | | | The primary aim of Uruguay Round was finalizing |
| economic dimensions (Potter, 2002). It was argued | | | | ways to reduce tariff barriers in developed countries |
| that ‘cultural globalization' is increasing | | | | as well as reduce non tariff barriers like elimination of |
| convergence of cultural styles on a global norm, with | | | | safeguarding, antidumping restrictions and voluntary |
| that norm being codified and defined by the global | | | | export restraint (Meredith & Dyster, 1999:291). |
| capitalist system. Now cultural values and norms are | | | | Currently, WTO is a body looking after ensuring |
| shared and adopted among people in a way where | | | | economic globalization primarily through trade |
| we are giving rise to one global culture. Similarly it | | | | liberalization. |
| was asserted that ‘political globalization' is | | | | These attempts resulted in boom of what is known |
| regarding as erosion of the former role and power of | | | | as ‘global economic convergence', that is |
| the nation-state. | | | | ‘global integration of product' (through world's |
| On the other hand, Potter (2002:192) defines | | | | top manufacturing companies' global operations by |
| ‘economic globalization' as economy where | | | | conducting planning, production and joint research |
| "distance has become less important to economic | | | | with companies of myriad nationalities and outside |
| activities, so that large countries sub-contract to | | | | their home countries) and financial markets through |
| branchplants in far distant regions, effectively | | | | currency trading, baking and loans and investment in |
| operating within a ‘borderless' world". However | | | | bonds and equity leading towards global |
| Inoguchi (2001) attempted to differentiate between | | | | homogenization (Kenworthy, 1997). |
| international and global economy. International | | | | References |
| economy suggests importance of national economies | | | | Inoguchi, T., (2001), ‘The World Economy', in |
| working as units under national states as a result the | | | | Inoguchi, T., (eds) (2001), Global Change- A Japanese |
| international economy concerns activities that take | | | | Perspective, Hampshire: Palgrave. |
| place among various ‘national economies'. | | | | Kneworthy, L., (1997), ‘Globalisation and |
| However global economy describes unity of globe | | | | Economic Convergence', Competition and Change, |
| where geographical distance is no longer obstacle to | | | | 1997, Vol 2 |
| economic activities. It also implies aggregation of the | | | | LeQuesne, C., (1996), ‘The Uruguay Round', in |
| movement of goods and services worldwide | | | | LeQuesne, C., (eds) (1996), Reforming World Trade, |
| together with their concomitant activities including | | | | the Social and Environmental Priorities, Oxford: Oxfam |
| movement of technology information and currencies | | | | Meredith, D., & Dyster, B., (1999), ‘International |
| without ‘tyranny of distance'. | | | | Economic Impacts on Australia in the 1990s', in |
| The economic globalization was flourished in 1990s | | | | Meredith, D., & Dyster, B., (eds) (1999), Australia In |
| and many examples can be taken to validate this | | | | The Global Economy- Continuity and Change, |
| argument (Papers4you.com, 2006). For instance | | | | Cambridge: Cambridge University Press. |
| Western European integration was first step towards | | | | Papers For You (2006) "P/B/653. Negative effects of |
| economic globalization by European countries through | | | | globalisation", Available from [19/06/2006] |
| signing Maastricht Treaty in 1991 that lead to creation | | | | Papers For You (2006) "S/M/81. IN THE MIST OF |
| of single market in 1992 and set base for European | | | | GLOBALISATION: CLASSICAL STRATEGIC |
| Union that was on full operation in 1999. Similarly 12 | | | | MANAGEMENT IN THE 21ST CENTURY-IS IT |
| members of European Community and seven | | | | WORKING?", Available from [19/06/2006] |
| members of EFTA formed European Economic Area | | | | Potter, C (2002), ‘Global Convergence, |
| for free trade including 380 million people and | | | | Divergence and Development', in Desai V and Potter, |
| accounted for 40% of world trade (Meredith & | | | | R. (eds) (2002), The Companion to Development |
| Dyster, 1999). | | | | Studies, London: Arnold. |
| How ever it was the signature on First Act | | | | |