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Class Discussion - Essay Example

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Name: Instructor: Course: Date: Class Discussion Question 1: The Most Convincing Interpretation The most convincing of all interpretations is the theory of regionalism. Economic regionalism refers to institutional arrangements planned to aid the free movement products and harmonize foreign financial policies between nations in the same geographic region…
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Download file to see previous pages There is no other better way that could explain of economic globalization that this. According to Mittelman (53), globalization goes through macroregionalism supported by economic and states forces that seek to open larger markets as a way towards greater competitiveness. This is certainly true. Others have referred to the process of continental globalization in line with North America indicating that regionalism is the force through which globalization is conveyed (Scholte 7). Likewise, Mittelman’s analysis points to the emergence of global regions as the key factor leading to globalization. Take Europe for instance. The continent houses a majority of the world’s economic giants because of its regionalism policy advocated by the European Court for Human Rights. This body advocates for a ‘Social Europe’, the proposal of a federalist post-national Europe, which a majority of European nations have embraced, (Scholte 7). In these, the countries see the likelihood of a non-neoliberal, progressive regional system of authority in which the freeing of the markets for capital, goods, and labor occurs in the context of a rights-based, progressive, social system. These regional financial arrangements are rather different and range from foreign exchange reserve pooling and government financing to currency swap arrangements. What is widespread to all these schemes, in spite of their intrinsic variety, is that they all wish to promote regional integration along with financial and macroeconomic stability. Even though, there is a considerable stream of academic contributions on economic regionalism, people’s understanding of financial regionalism is fairly limited, despite its potentially wide-ranging effects in shaping the global financial structures (Veseth 40). Take for instance a continent like Europe, where the newly projected European Stability Mechanism is projected to be a legal tender union lending arrangement to offer direct assistance to countries in Europe and other regions. In Europe, just after the Second World War, the interdependence of the continent’s economies led to the formation of the European Payments Union, a forerunner of a much advanced framework, which culminated with the creations of the currency union in 1999. The organizations have been able to influence globalization all through Europe (Scholte 7). Latin America, on the other hand, boasts the oldest, even though less renowned tradition of regional assimilation efforts among the developing nations. These economic relations, in South America, also go as far back as the 50s. Hoping to produce a regional common market for countries in South America, lawmakers, in the region, have succeeded in setting up clearing arrangements for intraregional expenses, FLAR and two development banks. FLAR refers to a small and cozy membership of seven small, as well as medium-sized, economies with strong traditional ties. They also portray a wide set of common interests (Veseth 50). In reality, FLAR offers a direct proof to the potential of regional associations to offer greater ownership to member countries that would otherwise put a lot of efforts to be heard in the international, 188-member IMF. The search for alternative futures for the region, in the Americas, in many ways, reflects the talks taking place within the broader "anti-globalization" movement. They perceive ...Download file to see next pages Read More
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