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My Understanding of Economic Globalization
Feng Guilin
Abstract
There
is
no
doubt
that
nowadays
the
trend
of
global
economy
is
economic
refers to the economic integration of
countries around the world. With the development
of economic
globalization,
the
global
trade,
financial,
business
operations
and
other
economic
factors
of
mutual
dependence
have
been
strengthening.
At
the
same
time,
it
also
provides
many
countries
with
opportunities
and
challenges.
In
the
paper,
some
solutions
to
today's
challenges
are
put
forward.
In
view of some
controversial issues, I also raise some private
opinions.
Key words
economic
globalization, concept, manifestation, impact,
coping strategies
(A)
the concept
of economic globalization
There
is
no
doubt
that
nowadays
the
trend
of
global
economy
is
economic
globalization.
One
more
thing,
now some economists call the trend
“internationalization” rather than “economic
globalization”.
I support the main
trend --
“economic globalization”.
“Globalization” is the free flow of production and
capital
in
the
world.
“Internationalization”
is
the
friendly
cooperation
between
countries
and
the
unequal exploitation.
From
the Internet, I knew the exact definition of
“economic globalization” is that
the
world
economic
activity
beyond
the
borders,
through
foreign
trade,
capital
flows,
technology
transfer, provide services,
interdependence, mutual connection and then form a
global organic economy
as a whole. To
my mind, economic globalization is a developing
process of global link between trade,
finance,
production,
and
labor.
In
other
words,
economic
globalization
refers
to
the
economic
integration of
countries around the world. It is the result of
the development of productive forces in the
world.
The
driving
force
is
the
pursuit
of
profit,
the
competitive
advantage
and
the
development
of
economy.
It
is
not
far
from
our
daily
life.
For
example,
we
have
been
able
to
buy
more
and
more
international
brands
in
supermarkets
now.
This
is
an
obvious
result
of
the
impact
of
economic
globalization.
(B) the main manifestations of economic
globalization
(a)
the globalization of production
In
the
process
of
economic
globalization,
international
division
of
labor
gradually
occupies
the
dominant position. It
takes the capital, technology, management skills
and other factors of production
as the
prerequisite. It is the core of the production of
transnational organization. It is a symbol of the
formation
and
establishment
of
the
global
production
system.
It
makes
production
activities
of
the
world
no
longer
in
isolation,
but
has
become
an
integral
part
of
the
global
production
system.
The
globalization of
production laid the foundation for each countries
participate in international division of
labor
and
international
competition
provides
opportunities
and
conditions;
it
also
allow
countries
to
become part of the global production
system, become commodity value chain A link, so
that the whole
earth becomes a big
factory.
(b) the globalization of
market
In the
process of economic globalization, international
trade has been expanding rapidly. The rapid
development of trade in services has
been rapidly increasing in the countries involved
in trade, which
also means that the
formation of the world multilateral trading
system.
(c) the globalization of
finance
Based
on the production and trade globalization, the
process of financial globalization also in greatly
accelerated.
First of
all,
the
rapid
expansion
of
the
scale
of
the
international
bond
market
financing.
Secondly, associated with the stock
market development, fund market is growing
rapidly. Finally, the
financial market
is highly integration. With the continuous opening
up of financial markets in countries
all
over
the
world,
all
kinds
of
global
financial
market
is
to
connect
a
piece
of
the
direction
of
development. At present the United
States, Europe and Asia in the foreign exchange
market have even
as one, its mode of
operation, trading varieties and means remained
the same, investors can at any time
within 24 hours a day when trading.
(d) the globalization of business
The
important symbol of the globalization of business
is multinational companies become the main
body
of
the
world
economy.
According
to
statistics,
at
present
global
multinational
company,
parent
company of about 6.5
million, with about 85 million foreign branches.
Today about 90% of the country
is
multinational company's subsidiary, or branch, its
footprint has almost all over the world. The rapid
development
of
multinational
companies,
the
production,
the
further
deepening
of
the
internationalization of capital and
goods, greatly promoted the process of economic
globalization.
(e) the globalization of
science and technology and information
National
scientific
and
technological
resources
in
the
global
scope
of
the
pursuit
of
optimal
allocation.
Advanced
technology
and
R
&
D
capability
of
large-scale
cross-border
transfer.
A
cross-border
joint
R
&
D
widespread.
Information
technology
industry
as
a
typical
representative,
national
technical
standards
and
tends
to
be
consistent.
Giant
multinational
corporations
through
the
use of technology
standard monopoly, control of the industry
development, but also get a great deal of
excess profits.
(C) the impact of economic
globalization
(a) Economic
dependence among countries increased
Due
to
the
economic
interdependence
strengthen,
any
country's
internal
economic
imbalance
end
may
lead to the economic crisis in the world. For
example, Thailand's currency crisis in 1997 is
very
fast and throughout Southeast Asia
as well as South Korea and Japan, the formation of
severe regional
financial crisis, then
spread to Russia and Latin America, causing the
global financial turmoil. Also, on
Wall
Street
in
2008
subprime
crisis
eventually
led
to
the
global
financial
crisis
has
yet
to
be
fully
restored.
(b) The
independence of national economic sovereignty is
challenged
Facing the new situation of economic
globalization, the traditional state sovereignty
content occurred
certain
degree
changes.
The
rights
of
a
country
in
which
a
country
has
its
own
right
have
gradually
become
the
common
ownership
of
the
international
community.
For
example,
the
World
Trade
Organization
repeatedly
reducing
tariffs
and
trade
liberalization
negotiations.
And
some
countries
to
receive aid from the International
Monetary Fund was forced to
(c) The gap
between the rich and the poor increased
Global
competition created efficiency. At the same time,
a large amount of wealth flows to a small
number of states or interest of the
reasons is that the economic globalization has
brought