Globalization as extended the opportunities available for economic growth leading to extensive lobbying amongst world financial institutions. The high influence of exchange rates as also extensively affected business transactions. The price of commodities, air fare tariffs, foreign exchange levels and export and import licenses have been affected across world markets. The World Bank, major banking institutions, World Trade Organization and UN agencies have converged to control the world markets from various levels due their extensive consultations and economic persuasions on vital financial matters. The economic control by these organizations has also lead to political and social influences amongst various nations across the world. Most countries’ sovereignty has been weakened especially amongst third world countries has they depend on financial support from these organizations for their financial stability. (Gregory, 2000)
The three main economic principles, economic liberalism, nationalism and structuralism have been forwarded to analyze the global political economy. Economic liberalism, a principle that supports laissez faire economics also greatly values private property in production. It analyses the specific institution that produce a certain commodity e.g. wine production in Italy. The principle refutes the intervention of governments in market influences but it supports the intervention of governments to guard against exploitation of consumers.