How Does Globalization Affect Economic Governance?

Fifteen years ago at the watershed of the two centuries, business organizations across the globe faced a new environment, which was a far cry from the world of regulated domestic economy that was characteristic of the last century. Today, international markets have turned much more mercurial and volatile. Industries are undergoing quantum change, thanks to the unprecedented globally wide recession.
The challenge is to marshal the cumulative and collective managerial experience in order to countenance the changes created by the new market environment. Inside an organization, the hierarchies have crumbled down. Predictable career paths have vanished. New networks comprising suppliers and subcontractors have sprung up to surface.
Industry and commerce will never return to the regulated
International Monetary Fund has defined globalization as “the growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services, and of international capital flows, and also, through the more rapid and widespread diffusion of technology.”
In order to understand the structure and grammar of globalization, at least in respect of its impact on economic governance, it is essential to examine the critical driving forces and key building blocks behind the process. The growing interdependence mentioned in the aforesaid definition has taken place only because of the increasing acceptance and enthronement of economic liberalism as the preferred method of managing the market forces.
In fact, managing the market forces, in the context of a liberal approach is a paradox and self-contradiction. Liberal economics demands little politics. The role of the political rulers must be confined to the provision of an enabling environment and a conducive climate, in which trade and commerce will feel free, and find their own way to the fulfillment of their