That distinction is not just theoretical. Properly understood, it greatly illuminates the evolving character of globalization. Not an easy read, but it's worth the effort if you want to make sense out of globalization and the debate over its future. Although Reinicke has transferred to the World Bank. The international economy lacks the social and political framework that helps a domestic market economy function smoothly.
Expert opinion differs widely as to what to do about that.
Some economists say not to worry, the market can cope, at least in the long run. Wolfgang Reinicke advocates a system of public-private global partnerships to fill the gap. Dani Rodrik, professor of international political economy at Harvard University, stands out as someone very skeptical about even the direction of the present fragmentary system. He criticizes its implicit objective of trying to build a global capitalist system, when in fact nations have many different brands of capitalism, which can't be poured into a single mold. Ironically, as he points out, free market theories have led to more and more outside intervention in the internal affairs of nations.