CHAPTER NINE
How Globalization Actually Works

Study
While chapter 8 looked at the causes of globalization, chapter 9 looks at the phenomenon itself to see examine it works—or at least how it should work, according the to the different perspectives. Realists, for example, take an inward-first approach that calls for countries to cooperate economically only after first fixing domestic problems. Liberals, conversely, stress outward-first approaches in which countries first make international economic agreements and then subsequently change their domestic policies to align with these agreements. Identity perspectives, meanwhile, focus on the sustantive goals of economic cooperation, seeking to determine whether these objectives are appropriate.

Study Questions

1. What are the differences between inward-first and outward-first approaches to international economics? Which perspective is likely to emphasize outward-first approaches? Inward-first?
   



2. What are the four border policies, and how does each affect a country's relationship to the world economy?
   



3. What are the primary functions of the IMF, the World Bank, and the WTO?