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Nevertheless, the various definitions of globalization have pointed out certain key aspects that relate to issues of territoriality, shifting authority…
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Download file to see previous pages The onset of international business growth and ease of access to information worldwide because of the improvement of technology, state boundaries became less important because geographic and social boundaries changed and became accommodative. The new era of globalization, which became popular particularly in the 1970s brought changes, opportunities and new considerations and challenges because it created a free market in the world compared to when globalization was an unknown phenomenon. Globalization has facilitated the formation of a common market all over the world based on a liberal exchange of goods, services and money. Therefore, economic globalization refers to the increase of integration of markets across political boundaries. The oil industry captures the aspect of globalization through the growth of MNEs and a free international market for oil products (Golove, 1996:135).
Globalization has affected the oil industry in a variety of ways. Oil-exporting states occupy an inconsistent position in the international system because of several aspects. First, in terms of economy, these states are highly globalized and are highly dependent on international trade, labor and finance. All these states are the source of a commodity that is significantly vital to all sections of the world making them influential states in the world. However, these states are not politically globalized because they are not likely to sign major treaties or join intergovernmental organizations. Most of them defy the global norms of human rights in search of cheap labor (Mitchell, Marcel & Mitchell, 2012:23). All over the world, economic globalization is related to political globalization because economic globalization only works through international trade, business, and finance and labor exchanges.
Political globalization also ensures that economic globalization grows because it opens local ...Download file to see next pagesRead More
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