As noted in the research by P.J. Taylor (2002: 113), historically, the global economic environment was made up of a “…competitive world of rivalry between states, [where] each has had to look to its own ends and use any means available to satisfy them.”1 (P.J. Taylor, 2002). Following the demise of the cold war and the advent of the information era, however, this global economic landscape has changed dramatically. Indeed, it was in recognition of this change that the ex-Prime Minister of the UK, Tony Blair observed in his 2006 speech to the Australian government argued “you can't have a coherent view of national interest today without a coherent view of the international community” (Blair 2006, n.p).
However, one has to consider the merits of this argument in the context of the rivalries and alliances that still exist globally across national economies. The objective of this essay is to examine the impact that these phenomena have, using examples from four main economic and political activities for this purpose.
Advances in digital technology in the latter decades of the
1900s led to the globalisation of commercial activities and
operations, which in essence related ton the international
spread of corporate production processes (Castells 2001). It
was corporations in developed countries that were first to
take advantage of the cost benefits arising from
technological developments. With improved communication
provided by the internet and other technological advances,
these corporations soon began to move their production
operations to locations in emerging countries in order to
gain the competitive advantage available from the reduced
production and employment costs available in these
locations. To consolidate this global production network,
corporations therefore to develop alliances and joint
ventures with domestic businesses in these countries.