Globalization's Limits: Conflicting National Interests in Trade and Finance

by Chorafas,Dimitris N.

• ISBN13: 9780566088858
• ISBN10: 0566088851
• Edition: 1st
• Format: Hardcover
• Copyright: 2009-06-28
• Publisher: Routledge

Summary

So far there has been only praise for globalization. However, the export wave of China's manufacturing machine and, more recently, the Global financial crisis show that Globalization has limits.Globalization, the internationalization of trade, and financial integration are having enormous implications for businesses as well as for the whole economies of countries or blocks of countries. In this book Dr Chorafas argues that research is now producing evidence that there are limits to such globalization and amalgamation and that these need to be better defined and understood if some of the problems now being identified are to be prevented from applying the brakes, or worse, putting the process into reverse gear.The author examines the impact on countries such as the United States and European Union of occurrences like China's emergence as a massive manufacturing platform and the distortions of trade that result, affecting countries' GDP and creating problems such as uncontrollable current account deficits. He also considers the effect of Sovereign Wealth Funds as new entrants on the scene. These, he argues, are seen by some as 'the Trojan horses of state capitalism', particularly in what he defines as the 'absence of a global sheriff'.Globalization's Limits looks at the EU and the Euroland as a test of globalization. The conclusions Chorafas draws about the effect on member states of pan-European banking, and the Euro as common currency, have implications for Britain and for the rest of the world. Issues relating to missed opportunities and leadership beg questions such as 'Who, if anybody, is or should be in charge of global monetary policy?'

Table of Contents

United States, Europe, China and the world market

Globalization in Motion: China enforces the racial equality clause

China and India as emerging countries

Emerging markets raise concerns in OECD countries

Globalization''s prerequisites

Impact of a hollowing economy on the middle class

The argument against free trade

Globalization''s unexpected consequences

The Rise of Asian Giants: A snapshot of China''s position

Is China emulating Japan''s rising sun?

India versus China

Global firms from emerging countries

State planning as alternative to global firms

The great leap forward reminds Mao''s time

Pollution, too, got out of hand

Contrarian opinions about China''s commercial threat

Globalization and the European Union

Free market competition and the EU

Failed tests of globalization in the EU

Aftermath of globalization on the European economy

Italy''s decline as an industrial power, an example

Competitiveness should never be taken for granted

Italian textiles versus Chinese textiles, a case study

The Italian economy needs both fiscal discipline and discipline at large

Change, World Trade and Doha Round

The management of change

Economic integration and anticipation

China price and WTO

Doha Round, a case study in globalization''s unexpected consequences

Inflated food prices and increased health hazard

Conflicts of interest in global trade talks

The Globalization of Finance

Sovereign Wealth Funds

The sovereign wealth fund call

The sovereign wealth fund put

State capitalism, a way to get back money loaned to rich nations

Human resources, one of the SWFs'' main challenges

How to destroy a franchise

New investment strategies by SWFs

SWFs of China and Singapore, an example

Sovereign wealth funds and the Dollar

Risks and Opportunities in Globalized Financial Markets: Financial markets

Financial centres

Market Liquidity

The central banks'' liquidity control

Globalization of concentration risk

The difficulty of distinguishing bankers from speculators

Who Is responsible, capitalism or human nature?

Monetary Policy in a Global Economy: Responsibility for monetary policy, the Fed in August 2007

Monetary base and money supply, M1 and M3

Who establishes global money supply?

The financial industry''s money supply glut

Economic policy and global imbalances

Currencies and the global financial market

Redressing a falling currency, a case study

The Chinese sense of a crisis

China''s Banks and the Economy: Close ties to the government breeds corruption

Solvency and liquidity of Chinese banks

China''s soft belly Is financial staying power

How to prune the system of Its excesses

Economic nationalism can damage China''s economy

Mistakes which should have been avoided

Is China an ally or antagonist of the United States?

Euroland, Case Study on the Limits of Regional Globalization

Financial integration in the European Union: Is the EU a modern integrated economy?

The low road to financial integration

Lisbon agenda, the european commission''s action and inaction plans

Markets in financial instruments directive, by EU commission

Current issues relating to transborder integration

The lack of integration in Euroland''s banking industry

Banking regulation and the home-host challenge

Beware of model risk

The Euro, Curse or Blessing for the EU Economy?

Establishing a sustainable an credible common currency

Birth of the European Monetary Union and advent of the Euro

The Euro Is a currency without a country

Challenges with a single currency

A positive example, Germany thrives with the Euro

Italy''s and the Euro''s years of crisis are not over, you don''t own a property, it owns You

Exit the Euro, a simulation by standard & poor''s

Euroland''s Missed Opportunities: Political union would have been the better solution

Clash of dirigisme and of free economy

Treaty of Lisbon and ECB

The EU president''s accountability

Euroland''s stability and growth pact

Fireworks with financ

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