Is there really such a thing as "the global economy"?

[eridani]

http://www.truth-out.org/the-myth-global-economy61330

Economists James Anderson and Eric van Wincoop have calculated that the average cost of international trade (ignoring tariffs) is the equivalent of a 170 percent tariff. Even between adjacent and similar nations like the U.S. and Canada, national borders still count: Canadian economist John McCallum has documented that trade between Canadian provinces is on average 20 times as large as the corresponding trade between Canadian provinces and American states. And much of international trade is interregional anyway, not global, being centered on European, North American, and East Asian blocs; this is true for just under 50 percent of both agriculture and manufactured goods.

In reality, the world economy remains what it has been for a very long time: a thin crust of genuinely global economy (more visible than its true size due to its concentration in media, finance, technology, and luxury goods) over a network of regionally linked national economies, over vast sectors of every economy that are not internationally traded at all (70 percent of the U.S. economy, for example). On present trends, it will remain roughly this way for the rest of our lives. The world economy in the early 21st century is not even remotely borderless.

Another stubborn reality is that, contrary to what some people seem to think, the nation-state is a long way from being economically irrelevant. Most fundamentally, it remains relevant to people because most people still live in the nation where they were born, which means that their economic fortunes depend upon wage and consumption levels within that one society. Unemployed Americans are discovering this the hard way right now.