Assignment Code: BPSC-110/ASST/TMA/2022-23

Course Code: BPSC-110

Assignment Name: Global Politics

Year: 2022-2023

Verification Status: Verified by Professor

Answer all questions in the three Assignments and submit them together.

Assignment - I

Answer the following in about 500 words each.

Q1) Explain different theoretical approaches of globalisation. 20

Ans) The different theoretical approaches of globalisation are as follows:

Hyper Globalists

The first wave of globalisation theory is referred to as a "hyper" globalist view of the economy since it contends that the importance of national economies has decreased as a result of increasing capital mobility, economic interdependence, and the presence of multinational corporations. Francis Fukuyama (End of History), Thomas Friedman (World Is Flat), and Kenichi Ohmae are some of the proponents (End of the Nation State).

They contend that due to technological advancements like the computerization of financial transactions, political restrictions on the flow of money have diminished. They contend that because of the "denationalisation" of economies brought about by the current phase of globalisation, nation-states are doomed. As social democracy and the welfare state are reduced to make room for corporate interests, this has effects on them. As people all across the world absorb global culture, this also causes a deterioration in national culture. According to hyper globalists, transnational, global forces dominate the economics, politics, and culture of all countries.

Sceptics

The second wave is made up of sceptics who think there isn't much new about globalisation and that its effects are being overstated for political purposes. Grahame Thompson and Paul Hirst are among its leading proponents (Globalisation in Question: The International Economy and Possibility of Governance). Globalization is viewed by sceptics as an ideological weapon employed by academics and politicians to further the interests of corporations rather than as a revolutionary technical and economic force. They contend that there is proof of nation states' ongoing influence both domestically and internationally.

Additionally, sceptics contend that national cultures cannot be replaced by global cultures since national identities have histories that capture the public's attention. Economic sceptics claim that there are differences in how globalisation is being implemented around the world. For instance, Sub-Saharan African nations have far lower levels of economic integration than major economies like East Asia and Europe. Globalization has caused poverty and inequality in many African countries to rise. According to sceptics, various cultures react to globalisation in various ways. Sceptics’ approach yields findings that emphasise factors like power, inequality, conflict, and the significance of nation states.

Transformationalists

The third wave is made up of transformationalists, who hold a position that is intermediate between hyper globalists and sceptics. They present a nuanced view of globalisation that contrasts with the globalists' claim that it will obliterate everything. The chief proponents of this position are David Held and Anthony McGrew (The Global Transformations Reader: An Introduction to the Globalization Debate), Anthony Giddens (Runaway World), and Ulrich Beck (Risk Society).

According to them, issues like the environment, drugs, crime, and advancements in international transportation and communication are transforming national economic, political, and cultural forces to share sovereignty with other entities. Politically, the nation state is no more an independent, self-governing entity and power is widely dispersed. States are viewed as activists, and instead of having their authority reduced, it is being reconstructed. National culture, as expressed in things like films, food, religion, and fashion, has been so thoroughly influenced by global sources that it can no longer be distinguished from global culture.

Q2) Describe the functions and impacts of MNC and TNC in the process of globalisation. 20

Ans) The functions and impact of MNC in the process of globalisation are as follows:

1.  

2. MNCs build production facilities and offices where labour costs are low and there are abundant resources. They will occasionally establish production in collaboration with regional companies from around the world. A local business gains from this type of cooperative production in two ways. First, MNCs can give money for additional spending to quicken output. Second, MNCs offer the newest technologies to boost and enhance output.

3. Many multinational firms are so wealthy that they have more money than some developing nations' entire budgets. This is why they buy up neighbourhood businesses to increase productivity. By placing orders with start-ups in developing nations, MNCs gain control over manufacturing. They serve as transmission platforms for better technology.

4. They have provided sophisticated manufacturing techniques, technology, and improved skills to emerging nations. They aid in the migration of money from countries with abundant resources to those with scarcity.

5. They support the growth of human resources and the advancement of knowledge.

6. MNCs manufacture their services and goods abroad in addition to marketing them internationally. Small segments of the production process are shared globally. Convergence of commercial and development efforts as a result.

7. By developing branches and affiliates, they help to provide substantial job opportunities. The balance of payments account of the host country benefits from MNC activities.

The functions and impact of TMC in the process of globalisation are as follows:

The operation of transnational firms is the primary engine of economic growth under conditions of integration, internationalisation, and globalisation processes. Since there are numerous definitions of multinational enterprises, their prominence in the global economy increases the more comprehensively they are presented (transnational corporations - TNCs). A transnational corporation, according to the United Nations (UN), is one that has branches and/or branches with at least two countries, develops a management system to ensure that the branch is implementing the common strategies and policies, and uses linkage forms of subsidiaries that communicate with one another. The definition of a transnational corporation given by the United Nations is an economic entity made up of the parent company and any overseas affiliates, whether or not it has legal personality.

Transnational corporations are characterized by:

1. The sovereignty of TNCs is shown in the fact that these decisions are made independently of the countries where their investments are made. However, because they depend on the political climate or the economy of the nation, sovereignty does not provide them with much protection against the risk of investment.

2. The geographic distribution.

3. The adaptability of the organization's manufacturing processes.

4. The demand for investments determined the specialisation in product development.

5. A capacity for integration. The primary determinant of the TNCS's efficiency is specialisation in production. However, it necessitates excellent activity coordination, flawless information, technology, and human resource flow between branches and corporate offices.

6. The ability to undertake numerous operations simultaneously on various marketplaces while taking advantage of economic variances has the result of enhancing present or future performance.

Assignment - II

Answer the following questions in about 250 words each.

Q1) Examine the role and the functions of the International Monetary Fund (IMF). 10

Ans) The role and the functions of the International Monetary Fund are as follows:

The IMF is a group of 189 member nations that seeks to promote international monetary cooperation, ensure financial stability, ease trade between nations, encourage high employment and long-term economic growth, and lessen poverty worldwide.

To support the stability of the global monetary and financial system, the IMF performs three key tasks: surveillance, financial aid, and technical help.

Monitoring: The IMF keeps a careful eye on the economic and financial developments in each member nation. It also regularly, generally once a year, engages in policy discourse with each nation to assess its economic situation and make recommendations for policy. Based on data from individual consultations, the IMF also assesses trends and prospects at the international, regional, and local levels. Through the World Economic Outlook and the Global Financial Stability Report, the IMF releases such assessments of the multilateral monitoring on a semi-annual basis.

Financial Assistance: Through a variety of loan instruments or "facilities," the IMF provides loans to its members experiencing balance of payments issues in an effort to speed up the adjustment process and restore economic growth and stability. Typically, an IMF loan is given as part of an "arrangement" that calls for the borrower country to implement the precise policies and solutions outlined in a "Letter of Intent" in order to address its balance of payments issue.

The majority of IMF loans are generally supported by quota contributions made by its member nations. As a result, the overall number of quotas has a significant impact on the IMF's ability to lend. However, in order to augment the funds from its quotas, the IMF may, if required, borrow from a number of its financially strongest member nations through the New Arrangements to Borrow or the General Arrangements to Borrow.

Technical Assistance: The IMF offers technical assistance to help member nations improve their capacity to create and carry out successful policies in four different categories: monetary and financial policies, fiscal policy and management, statistics, and economic and financial law.

Q2) Ideology of neoliberalism. 10

Ans) Neoliberalism has significantly altered how people view economic growth. Global organisations including the UN, World Bank, and IMF have all backed the neoliberal model of economic development. Neoliberalism's ideology has led to the privatisation and deconstruction of the public sector in almost every nation. Additionally, the belief that the market is the best resource allocator has greatly influenced international trade policies.

The following are some of the fundamental presumptions and ideas behind neoliberalism:

1. Release of man's entrepreneurial freedom and abilities can best serve the purpose of human well-being.

2. An institutional framework that protects private property, the free market, and free trade is required for this.

3. Neoliberals support the government's involvement. To ensure the smooth operation of the market economy, it should guarantee the integrity of money, business contracts, international commercial and financial commitments, domestic stability, and military defence, as well as legal frameworks to ensure security for the business sector. According to neoliberalism, the government should use tax dollars to support and assist private businesses when they are in need.

4. State involvement in the social sectors of healthcare, social security, and education should end. Make private vendors for these products.

5. Where there are no markets, they should be created. Privatization is a viable option for achieving this goal. Where there is no private property, it should establish it.

6. The role of the state should stop at these economic activities. If it does, it will skew how the markets operate and harm the likelihood of economic growth. Therefore, the most important thing for the state to do is to keep itself to a minimum once the market is established. It serves as the classical economics' night watchman.

7. The Keynesian school of modern liberalism has recently been displaced by the more unique economic theory known as neoliberalism. Neoliberalism, in actuality, is not liberal. The worldview is very dissimilar from the values of personal freedom, democracy, and advancement of humanity.

Q3) How does globalisation affect the states jurisdiction? 10

Ans) The idea of state sovereignty and its jurisdiction have been impacted by the way the modern international order is being transformed by globalisation. At the expense of the law of the sovereign state, there have been two significant advances. First, sectors that were traditionally monopolised by the state, such human rights, social and environmental regulations, economic development strategies, and trade and investment, have seen a proliferation of specialised regimes of public international law. Second, the importance of laws passed by international bodies, multilateral organisations like the World Bank, and transnational enterprises has grown.

Rather of simply negating or diluting sovereignty, globalisation really has a much more complicated effect on the state's legal system. State law has a remarkable ability to adapt to various circumstances and to restrain the actions of transnational players, but global forces are likely to change it. These interactions will probably lead to a revision of the idea of "law." Sovereign states are necessary to enable globalisation, regardless of its rate or depth.

Different rules and practises can still be implemented, but only by sovereign states. Intergovernmental organisations, multinational NGOs, transnational enterprises, transnational networks of state agencies, private foundations, and migrants are just a few examples of the transnational entities that today play significant roles on the global stage. It is true that the competing interests of non-state entities like NGOs have to some extent "compromised" national sovereignty. Indeed, new institutions that span many territories have taken the place of numerous national regulations that restricted the movement of labour, goods, services, and capital.

Assignment - III

Answer the following questions in about 100 words each.

Q1) Examine the phenomenon of merger and acquisition (M&A) in the global economy. 6

Ans) M&A deals involve the transfer of ownership of businesses, other commercial entities, or their operating divisions, or their consolidation with other enterprises. Companies can expand, contract, or even vanish through M&A. The nature of a firm's business or its competitive position may also alter as a result of an acquisition. An acquisition occurs when a company buys the stock, equity interests, or assets of another corporation, whereas a merger is the combination of two entities into one entity. The lines between a "merger" and an "acquisition" remain hazy in business parlance because both types of transactions typically end in the consolidation of assets and liabilities under one firm.

Q2) Examine the organisational structure of World Bank. 6

Ans) Although it is not answerable to the General Assembly or the Security Council, the World Bank is connected to the UN. The board of governors, which meets once a year, is comprised of representatives from each of the bank's more than 180 member states. Typically, the governors are the finance ministers or central bank governors of their respective nations. Although the board of governors has some impact on IBRD policies, the bank's 25 executive directors really have the majority of the decision-making power. The United States, Japan, Germany, the United Kingdom, and France are five major nations that choose their own executive directors. Each area, made up of the other nations, elects one executive director. The World Bank's president, who also serves as chairman of the Executive Board, has always been an American.

Q3) Digital Globalisation 6

Ans) Digital globalisation is the condition of a digital form of globalisation that links countries, industries, businesses, and people all over the world through flows of data, information, ideas, and knowledge as well as through flows of goods, services, investment, and capital that are enabled or supported by digital technology. Common technologies that facilitate these flows include ICT, the internet, cloud services, and data analytics, while platforms that are digitally enabled, like e-commerce and online marketplaces, actively encourage trade and transaction flows. MNEs—whether they are new or established—do not just react passively to the effects of digital globalisation. Who participates in globalisation, how cross-border commerce is conducted, and where profits are generated and concentrated shift as a result of digital globalisation.

Q4) IBRD 6

Ans) The World Bank is in charge of the development bank known as the International Bank of Reconstruction and Development (IBRD). In order to help nations, fight poverty and advance sustainable development, the IBRD provides financial instruments and policy recommendations. 189 member nations jointly own the International Bank for Reconstruction and Development. The International Bank for Reconstruction and Development's mission is to support middle-income country leaders on their journey to greater prosperity by offering funding and economic policy guidance. It will frequently assist in financing infrastructure projects that increase a nation's economic potential while assisting governments in managing the public purse and fostering the trust of international investors.

Q5) Impacts of Globalisation on Cultures 6

Ans) Culture is not static; it is evolving. A simple difference between homogeneity and heterogeneity cannot effectively capture the effect of growing communications on cultural transformation. Instead, the growth of communications both expands certain chances for cross-cultural connection and restricts others. In the international system, new opportunities and difficulties are likely to arise as cultural norms alter and adapt. Cultural divides that exist today may converge into larger regions of commonality, which would make collaboration and communication easier. New cultural fault lines, on the other hand, are also likely to form, dividing peoples in novel and unexpected ways and offering fresh grounds for disagreements and conflicts.