Globalisation in the Modern Financial Markets - Term Paper Example

According to the most accepted theory, ‘globalization is understood to involve a profound transformation in our social condition; Influential accounts portray globalization as "time-space compression" or as the increasing predominance of "transcontinental or interregional flows and networks of activity, interactions and the exercise of power.";  Others emphasize human aspects: "the widespread recognition of a worldwide human commonality or of world society as a whole as the framework of human action.

"’ (Larner et al., 2004, 497)The above presented view of globalization can be also combined with the one of Guillen (2001, 235) according to whom ‘Intuitively, globalization is a process fueled by, and resulting in, increasing cross-border flows of goods, services, money, people, information, and culture; it can also be viewed as a decoupling or "distanciation" between space and time; it could also possibly be stated that globalization entails a "compression" of space and time, a shrinking of the world’.

These definitions can be considered as contained an integrated description of globalization as a phenomenon of the modern international markets. However, they could be criticized for a rather ‘strict’ and ‘absolute’ form of expression.On the other hand, Chung (2002, 289-290) proceeded to another theoretical approach of globalization according to which the globalization should be considered as geography – related activity. More specifically, in his study, it is stated that ‘Geographers now generally agree that globalization should be viewed as a set of mutually constitutive tendencies comprising both material processes of transformation and counter-movements and contested ideologies and discourses that operate across a variety of geographic scales.’.Regarding the above view of Chung, Guillen (2002, 240) formulated an alternative approach to the globalization concept, a more society – related one, and stated that ‘A second contested issue in the literature on globalization has to do with its consequences as to the convergence of societies toward a uniform pattern of economic, political, and even cultural organization;’.