Significance of Megatrends in the Economy: Societal Consequences of Globalization

Globalization as a new phenomenon is structurally different from internationalization and multinationalization. It takes multiple forms and encompasses several processes. Four new specific features are discussed: (a) the shift from the history of 'the wealth of the nations' to the history of 'the wealth of the world'; (b) the notion that globalization implies the end of 'nation capitalism' and the gradual emergence of a 'global capitalism'; (c) instead of a truly genuine globalization, one sees a process of 'triadization' of the economy on a world level; and (d) the emergence of the enterprise as the most powerful player. The multiplicity of aspects and novelty of globalization means that there is a need for a 'theory' of globalization. To that end a brief systematic assessment of various major implications and consequences of today's globalization is presented. The fundamental weakness of present globalization is the growing dissociation between economic power organized on a world basis by global networks of enterprises and political power which remains organized at the national level.