ABSTRACT
The last chapter concluded that the transformationlists' depiction of globalization was the most accurate of the three schools. In terms of levels of trade and finance and production (FDI) we have witnessed significant increases in the last few decades and that this trend is set to continue for the foreseeable future. It was also pointed out that the qualitative changes that have occurred in all three areas during this period have been as important as the quantitative increases. In the sphere of finance the development of innovatory instruments, such as futures, options and swaps has attracted high levels of investment in such derivatives, but just as importantly it has provided investors with the opportunity to retain a greater proportion of their capital for further financial transactions (which may or may not include investing in a greater number of derivatives). In terms of trade and production, it was argued that: there has been a substantial increase in intra-industrial and intra-firm trade; the slicing up of the supply chain has also led to a substantial increase in the volume of inter-firm trade; this geographical reconfiguration of the supply chain also partly explains the rise of so-called ‘supertrading economies’. 1
