According to Rodrik, the term "international integration of economics" is preferred when speculating from an economic perspective. Globalization is broad in its meaning, and therefore can be used to refer to different meanings in different contexts. From an economical perspective, the international integration of economies is thus preferred. Another reason why Rodrik prefers the use of the term "international integration of economies" is that the term cannot be judged basing on values, which are either positive or negative, contrary to globalization which usually varies in an imprudent way (Rodrik 177).
There are some circumstances that the term globalization has been used. The main context where globalization applies is a significant reduction in the formal barriers, at the international level. Formal barriers entail a number of attributes such as cultural differences, linguistic barriers, exchange rate uncertainties, tariff barriers and technology influenced internationalization. In this context, globalization basically referred to a decline in the barriers that tend to hinder international communication and unification of international economies. The values of globalization in the reduction of formal barriers can be considered to be positive, principally because they are significant in determining the trends of economic integration and international communication and political systems (Rodrik 179).
Global federalism and the golden straitjacket are the approaches to international economic integration. Global federalism is widely associated with mass politics, which involves significant restrictions of the national politics. Global federalism therefore attempts to align the jurisdictions of the international market and the border barriers that would somewhat be a hindrance to the international economic integration. On the other hand, the golden straitjacket focuses on upholding the national politics at the same time conforming to international jurisdictions. The golden straitjacket ensures that national politics do not affect the economic transactions at the international level (Rodrik 183).
It is long overdue for nations to give up significant power of national politics in order to favor mass politics. Rodrik is right in saying that the technological progress will play a key role in the elimination of current obstacles to international economic integration. The global convergence of economies will divide those involved into losers and winners; with winners being key beneficiaries of the globalization. Winners will basically include multinational companies, exporters and importers (Rodrik 186).
