POLS 317 Chapter Notes - Chapter 13: Infant Mortality, Reference Group, Portfolio Investment
2 Mar 2018
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Economic globalization - the implementation of neoliberal economic policy reforms (deregulation and privitization policies) by gov"ts and an increase in the worldwide flow of goods, services, labour, and capital. Gov"ts see it as the main way to develop economicaly and politically. Imf, world bank, wto - more states participating that didnt before. Economic globalization and gov"t respect for hr: two opposing views. Optimistic view: globalization and the road to development. Globalization enters countries through mnc"s and financial investors using foreign direct investment and portfolio investments. Fdi - building plants in another country and acquiring a controlling interest in an existing overseas company (longterm) Portfolio investment - puchase of stocks and bonds <10% of the outstanding stock in foreign firms. Countries that embrace globalization will increase economic wealth and socioeconomic welfare. Developing countries have more access to advanced tech, exposure to sophistiacted management and marketing skills, stronger economic grwoth, expansion in employment market (also mnc jobs pay more than local)
