Globalization A Unified Legal, Economic And...

The most common definition of globalization is the process of global economic integration, creation of a unified legal, economic and informational space. However, this simplified definition does not address how boundaries and borders are reshaped, the shift of power from states to corporations, capital mobility and the impact it has on certain sectors of population. With globalization, there is a market without borders.† Economic integration privileges the right of corporations. Corporations have the right to expand beyond borders, and exploit greater economies at scale; capital can be shifted to whatever countries which offer the most productive investment opportunities. It is important to note that while globalization†¦show more content†¦A particular regard must be given to the imperialist regime, this form of regime emphasizes hierarchy in world politics, but with networked reach over space increasingly supplementing or replacing direct territorial control. With th is regime, central state authority is diminished, and power is shifted to outside actors. These outside actors can range from distant, but powerful states or organizations such as the IMF and the WTO. The U.S. governing class, in alliance with the financial elites of its trading partners applied NAFTA’s principles to the policies of the World Bank and IMF. Precisely, IMF and World Bank structural adjustment plan is usually comprised of two parts – the loan and the acceptance of the conditionalities in return for the loan. The acceptance of the conditionalities of an IMF loan is a pledge to adhere to the neoliberal economic policies of the IMF which focus on privatization, reduced protection of domestic industries, cutting subsidies to domestic industries, liberalization of the economy and resource extraction/export-oriented open markets. They push countries, particularly developing countries, to open up their markets with as little restrictions as possible. Once this i s implemented, the state loses its control what happens within its borders. The state s ability to act in opposition to market forces is devastated by the fact that the state must reduce regulatory standards in order to attract capital. With