Theories of Globalisation

The 3 theories behind globalisation include:

• 1). Hyperglobalists
• 2). Globalisation Sceptics
• 3). Transformationalists

The first theory of globalisation is HYPERGLOBALISM:

• This is the belief that new globalised economic and cultural patterns are inevitable.
• This is because of the increasing computerised financial trading communications.
• Such as moble phones, the internet and new technology becoming largely available.
• They also see the new epoch of economic and cultural globalisation largely eroding the relevance of nation states and state sovereignty, placing a greater importance on transnational organisations.
• E.g. TNCs, such as Apple and Nike have more influence than nation states, as they are greater economically and culturally.

Globalisation sceptics are another theory of globalisation who believes:

• That globalisation is a fantasy.
• This is because they dismiss the integrated global economy.
• They argue that the overwhelming bulk of economic activity takes place within national borders, not across, dismissing the idea thaqt TNCSs have more power and influence.
• Therefore, they believe that foreign investment flows into the control of a few advanced economies.
  • E.g. The USA and China economies control the global economy.
• They believe that multinational corporations are still tied primarily to their home states or regions, and these produce benefits for these states or regions.

The third theory of globalisation is transformationalist:

• This accepts the changes in the economic and cultural patterns and processes of world politics.
• Whilst they dismiss the fact that traditional features have been removed altogether, by globalisation.
• This means that they believe that everything has not changed.