Globalization in a Theoretical Perspective

Globalization in a Theoretical Perspective

Throughout the study of International Political Economy, countless theories and perspectives have been introduced. These theories or ways of looking at the international political economy allow society to analyze how different factors interact. People can then make assumptions about human nature, society, markets, countries, and individuals. This paper introduces an overview of three different theoretical perspectives: Smith, Friedman, and Marx and their examination of globalization. Globalization is a great economic phenomenon based upon the development of trade, ideas, and other cultural aspects. Globalization minimizes geographical distance and connects the world, both culturally and politically. Individuals who support globalization believe that the integration of world markets will facilitate growth in economies around the world.

At this time, globalization is the prominent socio-economic system, a global free economy which has generated fast economic growth and prosperity, benefiting some more than others. This capitalistic system was born in the middle ages and slowly began to replace feudalism. Its focus was to pursue private concerns, generate surpluses, and re-invest to facilitate economic growth. Among its pioneers was Adam Smith. He advocated an international economy through his concepts of a free market and the invisible hand. In the beginning of the 20th century, Keynes put his own twist on the free market theory. He believed in close monitoring of private business activities, not control. Keynes thought the best economic system would be one that operated freely with occasional fiscal and monetary measures to regulate economic cycles. Keynes gained much support for his economic theories, even that of Milton Friedman, an American Nobel Prize winner. However, starting in the 1960s, Friedman began to preach his own ideas. He believed in a complete hands off economy without any intervention or monitoring...