Global Economy

• Gary Gereffi's journal, The Global Economy: Organization, Governance, and Development
• Gereffi mentioned that the global changes are attributed to how the global economy is organized and governed
• Developed countries and developing countries like the Philippines have to fully understand the impact of the contemporary global economy to improve their position in the global system
• There is no singular academic field that can completely explain the topic of global economy because it is interdisciplinary
• According to Geriffi, the global economy can be studied at different levels of analysis
• Macro level includes the international organizations and regimes that establish rules and norms for the global community
• Macro level is a contextual environment
• Since macro level blend both the rules and resources, they substantiate the widest parameters within which the global economy operates
• Existing international organizations

  • The world Bank
  • The international monetary fund
  • The world trade organization
  • International labor organization
• Meso level believed that the building blocks of the global economy are the countries and firms.
• At meso level, the global economy is seen as the arena in which countries compete different product markets
• meso level is a transactional environment
• At micro level, there is a growing literature on the resistance to globalization by the consumer groups, activists, and transnational social movements
• According to World Systems Theory the upward or downward mobility of nations in the core, semi periphery, and periphery is determined by a country's mode of incorporation in the capitalist world economy.
• shifts in world system theory can only br accurately portrayed by an in depth analysis of the cycles of capitalist accumulation in the longue duree of history
• Adam Smith, an 18th century political economist, defined "division of labor" as the specialization of workers in different parts of the production, usually in factory setting.
• Geriffi stressed that the division of labor also acquired a geographical dimensions during the influx of industrial economies as evolved.