The Rational Expectations in Globalisation: Gauged Globalisation

Abstract

The forward march of globalisation seems muted since the financial crisis of 2008. Literature shows globalisation entering a more cautious and regulated phase. We‟re creating a “a new gated globalisation” argues Greg (2013). According to him, „walls have been constructed‟ to obstruct the free flow of trade and money. However, such walls have “gates” that countries can open or close as they please. The present paper argues that Greg‟s „gated globalisation‟ has become „gauged globalisation‟ because only those gates are opened from which all benefits can be rationally forecasted and then gauged properly by participating players. For better and comprehensive understanding of globalisation we need a good interface of Internalisation, Liberalisation and Universalisation. Through spread and backwash effects, the present paper explains the interface between globalisation and technology and examines the viewpoints regarding the two first at national level and then at global level. The discussion shows that globalisation and technology is not bad; in fact, the bad view is generated by the wrong understanding of the interface between the two.