Q.1 What are the main assumptions and concepts associated with liberalism? Main assumptions and concepts associated with mercantilism? What are main characteristics of components of the Bretton Woods system?
Liberalism mainly associates with freedom of choice and action for all rational actors in all spheres of activity. Economically, liberalism has traditionally stood for a free market with minimum Government intervention or interference, minimum barriers to entry and exit of markets, and protection of free and open competition. Mercantilism was traditionally the opposite end of the spectrum from liberalism and was opposed to liberalism influenced economics. It stood for heavy Government intervention in the market and economy to protect the major business organizations from open competition. They justified this policy as protecting the national strategic economic interests of the country from foreign competition and penetration of domestic market by foreign business. Thus they also favored monopoly capital and monopoly of a handful of companies over the market (Ray 94).
Mercantilist economics also gave a heavy impetus on trade and mercantile activities as opposed to industrial production. The majority of economic activity according to mercantilism should be concentrated in trade of natural resources, rather than finished products. The Bretton Woods system reinforced the perspective of liberalism on the global economy by protecting inter-monetary policies among all the developed countries. The main component of it was all countries were obliged to maintain a balanced currency exchange rate that was pegged to gold and to allow the IMF to have a say in financial disciplinary policies. The inter-monetary policies between countries and the balanced exchange rates was the main focus of this system. The main focus was on ensuring a balance in currency exchange rates on a global basis to make it easier to import and export products between countries. However it was agreed to only by the major Western economies (Dunn and Mutti 159).
Q.2 What are the environmental challenges confronting the international system? What is meant by assessment of the challenges? How has the global community sought to address the challenges?
The push for financial development in late decades has prompted considerable expansions in riches for substantial quantities of individuals over the globe. Yet, notwithstanding enormous increases in worldwide monetary yield, there is confirmation that our present social, political and financial frameworks are compounding disparities, as opposed to lessening them. The worldwide economy does not look as powerless as amid the colossal retreat. Be that as it may, there is a sentiment remaining on an incline, with the degree for a restored emergency and retreat. Notwithstanding the financial issues said, there are likewise worries over circumstances like the vagrant emergency and natural vulnerability further diminishing certainty and speculation. The issue is that following quite a long while of retreat and low development, there are less holds for managing another emergency. The worldwide economy and Europe particularly could truly profit by an arrival to typical development (Dunn and Mutti 237).
Worries about vitality security and atmosphere manageability are joining at last acquiring agreement sight on the requirement for activity in the United States, yet prospects for breaking the worldwide stalemate are still years away. While some creating nations are succeeding in bringing several millions out of neediness, an excessive number of are still buried in a fate winding of contention, destitution, and sickness notwithstanding the section of new humanitarians, advocates and worldwide organizations into the field of advancement. The money related fears of collapse, falling oil costs and lower certainty is reflected in worldwide securities exchanges which have been unpredictable and falling following the start of the year. All alone, a fall in offer costs doesn't inexorably bring about issues in the genuine economy. In any case, it is another element that hits certainty and urges firms to keep down on speculation.
The truth we have entered another year of the 21st century with a particular absence of happiness is not really astonishing. The worldwide disposition has not by any stretch of the imagination recuperated subsequent to the 2008 worldwide subsidence, 2011 was an entirely awful year, and there has been a general sense that 2012 could be much the same or surely more regrettable.
Obviously, there are still numerous splendid spots and opportunities. The worldwide business sector is still more open than it has ever been and new mechanical developments keep on providing abundant roads for enterprise. This silver covering, be that as it may, can't veil the dim billows of low monetary development, high unemployment, unpredictable money developments, budgetary uneven characters, a foundering multilateral exchange framework, nourishment and water instability, persevering destitution, social turmoil, natural decay and a dangerous atmospheric devation, among others.
2011 saw an intensification in worldwide motivation setting or basically a stop is interested in verbal confrontation. What might be difficult to claim is that there has been advancement. The foundations of worldwide administration — including the G20, the UN Framework Convention on Climate Change, the World Trade Organization, and the World Bank and the IMF — have lost energy, as well as authenticity and believability.
In spite of the fact that the world is encountering a significant change with more riches and influence being exchanged toward the South — particularly to Asia — the North is still in control. In any case, the North now perceives that it can't legitimately address worldwide difficulties without the backing and investment of the South. The South, in the mean time, stores up resentment.
Q.4 How is globalization defined? What are the countertrends and arguments against globalization? What does the future hold, will the “State” continue to dominate the global system?
Globalization is an advanced wonder, which can be examined from different perspectives. Generally, we may say that globalization is incorporation of provincial economies, social orders and societies in a globe-spreading over system of correspondence and exchange. This term is a piece of a verifiable procedure of private enterprise which is another worldwide request with regards to a solitary world. Globalization is some of the time used to allude particularly to financial globalization. This point will be created along the article. Be that as it may, there is no one and only globalization, there are numerous globalizations such us mechanical, socio-cultural, political, organic, etc (Ray 86).
There are many arguments in favor of globalization. Progresses in correspondence and transportation innovation, consolidated with free-showcase belief system, have given merchandise, administrations and capital uncommon portability. For instance, Northern nations need to open world markets to their merchandise and exploit copious, modest work in the South. To do this, these nations use universal money related establishments, for example, the International Monetary Fund and the World Bank Group, and provincial exchange assentions to urge poor nations to "coordinate" by diminishing levies, privatizing state undertakings and unwinding ecological and work principles (Ray 141).
There are issues during the time spent globalization: if different nations produce merchandise superior to anything other, possibly a considerable measure of residents from this last nation will be sacked; in the event that one state gathers less assessment, organizations could go there to get more benefit. The procedure of globalization involves alterations in national and universal economies, to which nations must adjust. Salary appropriation: by and large merchandise are delivered in a country through the importation of them is less confined. Then again, globalization advances the focus and the rise of substantial multinational organizations. The likelihood of offering its items worldwide and lessen creation costs through misuse of economies of scale, cause that little organizations decreasing their business potential. This can bring about the diminishment of worldwide rivalry and that one or a couple organizations command the business sector.
References
Dunn, R. and J. Mutti. International Economics. Abingdon, UK: Psychology Press, 2004. Print.
Ray, James. Global Politics Tenth edition. New York: Houghton Mifflin, 2011. Print.
