The essence of global political economy

Abstract

Evaluates the interplay between market forces and political realities as the economies of Europe become part of a new global order. Capital is becoming more mobile and business increasingly international and borderless. Modern management seek opportunities to reduce costs of production. The transnational firm (TNC), a globally integrated organizational network, has emerged in this global search for low‐cost production bases. Consequently the realm of European economic policy analysis is now very much couched within a political economy dimension which is determining the direction of economic activity at the global level with ramifications for the European economy and its nation‐states. The hallmarks of that political dimension include the interrelationships between sovereign governments and the transnational corporations and the creation of geo‐political entities like the European Union. Impelled by global competition and the power of business, the drive towards European integration has furnished much‐needed debate on the effectiveness of indigenous government policies on their respective economies and on the relatively greater impact of modern corporations on the economy.