Globalization: An Institutionalist Perspective

Globalization has taken on at least two different meanings in the current literature. It is defined here as a process of institutional change in the modes of intercourse among nations and regions of the world, prompted by technologies that increase the volume of exchange of knowledge, culture, and commerce. This positive position reflects that of Thomas Friedman (1999), who sees globalization as the integration of capital, technology, and information across national boundaries. On the other hand, there are many who look at globalization as the takeover and augmentation of world commerce by increasingly powerful and rich multinational corporations (MNCs), driven by narrow and self-serving corporate goals and values without regard to human welfare. To them, globalization appears to be out of control and the MNCs without accountability.