Effects of economic globalization #2

Although the national economy is becoming more open and resources are becoming more mobile, the coherence and inertia of national production systems still make the national space an appropriate reference element (models of workforce formation, workforce composition, pay and incentives correspond to production goals and organizational structures specific to each national production system). Even if translations are still possible, in order to be fully effective, they must be adapted to the environment in which they are applied.

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An interesting fact is what is happening to national economic sovereignty in the context of globalization. The State administration of national sovereignty, defined in previous periods as full control over economic activities carried out on the territory of the country, has been profoundly changed by globalization.


Although the hegemony of neoliberalism can be considered the driving force of globalization, it cannot be said that all the consequences of globalization were desired or even foreseen by the heroes of this ideology. For example, neoliberal ideology is based on the concept of democracy (with the nation as a political unit, the state as the exclusive authority within established borders, with legitimacy and power organized within national borders, based on the constitution and the separation of powers in the state). In this model, international space is organized within the framework of an interstate system. Neoliberalism believed that the advantages of the system would remain final: internal and external security would be guaranteed within democratic states, and a national and global market would be organized. However, due to globalization/

Experts noted that discussions about national economic sovereignty at this stage of the game are focused on the "strong core", national economic security. The approaches were clearly defined by the US administration in the 1990s:

- The main component of national security is represented by the economic component.

- Security is no longer connected only with the state as an entity, but also directly with individuals, members of the national community.

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