Summary Of The Political Economy Of Globalization

The two course readings that I have selected for this assignment are “The Political Economy of Globalization by Layna Mosley” and “Making Globalization Work” by Joseph Stiglitz. The title that I have selected for this essay is “Globalization and the end of the nation state” due to the fact that the readings by Layna Mosley and Joseph Stiglitz will help me address the impact of globalization in both the developing and developing nation. For instance, globalization may have a positive impact on a developed nation and can have a negative impact on a developing nation. In the reading “The Political Economy of Globalization” by Layna Mosley it talks about how governments have embraced the neoclassical economic claim that economist openness improved

For example, there were many issues and problems with the Uruguay Round trade agreement. Some of the complaints about the Uruguay Round trade agreement were that poor countries were actually worse off and that the poorest region with an average income of just over 500 per capita per year, lost 1.2 billion a year, focus was on the liberalization of capital flows and investments rather than on the liberalization of labour flows (Stiglitz, 2006, p. 77). The liberalization of capital flows is what the developed countries wanted and that liberalization of labour flows could have benefited the developing countries. Rich countries such as the United States and Europe dominate countries that are developing due to the fact they have lots of power and control over goods and services. Another key example that can be mentioned is the trade agreement between the United States and Morocco over AIDS drugs. United States made a big push to delay the introduction of generic drugs and wanted the agreement to protect U.S drug companies (Stiglitz, 2006, p. 104). However, if generic drugs came out in Morocco, it would only cost a fraction of brand name drugs (Stiglitz, 2006, p. 104). Nevertheless, the United States had to prevent this from happening as their profits would have fallen dramatically (Stiglitz, 2006, p. 104). The restriction of generic drugs made in the agreement by the Untied States will increase the patent production to nearly thirty years and that these generic drugs will become less accessible in Morocco (Stiglitz, 2006, p. 104). The generic drugs in Morocco would have helped and saved many people that are suffering from various diseases. The United States had an advantage over Morocco due to the fact they placed a patent on the