"Economic Globalization"

 1. Summary

Economic globalization is one of the three main dimensions of globalization common in academic literature, and the other two are general terms of political and cultural globalization, and globalization. Economic globalization refers to the widespread international movement of goods, capital, services, technology, and information. Strengthening cross-border movement of goods, services, technology, and capital is increasing the economic integration and interdependence of national, regional and local economies worldwide. Economic globalization consists primarily of globalization of production, finance, markets, technology, organizational systems, institutions, businesses, and people. 

Although the globalization of the economy has been expanding since the advent of transnational trade, it has grown at a faster pace due to the efficiency of long-distance transportation, the development of communication, and the importance of information over material capital in the modern economy. The pace of globalization has also increased under the framework of the General Agreement on Tariffs and Trade and the World Trade Organization, and countries have gradually broken down trade barriers and opened up current and capital accounts. This recent boom has been largely supported by developed economies integrated with developing countries through direct investment abroad, reduced business costs, reduced trade barriers, and, in many cases, cross-border migration.

2. Interesting point

The characteristic Japanese business group (Geiretsu) was at the center of Japan's economic development after World War II. But Japan's financial crisis, which followed the collapse of the "bubble economy" in the late 1980s, has put considerable pressure on them to change at least some of their practices. In particular, the recent influx of foreign capital to acquire important and sometimes dominant stocks in some of these companies has had a catalytic effect. In particular, there is strong pressure from Western (especially the US) financial capital to open up Japanese business groups to the outside world, reduce or eliminate complex mutual equity-holding agreements, and become like Western (US) companies that focus on 'shareholder value' rather than broad-based 'equitiesUndoubtedly, some changes are taking place, but it would be a mistake to assume that a Japanese company will suddenly turn into an American replication company. The Japanese have a very long history of adapting to external influences by building Japan's unique structure and practices.

3. Discussion

Companies in developed countries tend to have more highly automated, more sophisticated technologies and technologies, and better national infrastructure. For this reason and sometimes economies of scale can sometimes outperform similar businesses in developing countries. This is an important issue in international agriculture, where Western farms tend to be large and productive due to agricultural machinery, fertilizers, and pesticides. But farms in developing countries tend to be small and heavily dependent on manual labor. On the contrary, cheap manual labor in developing countries has allowed workers there to compete better than workers in high-wage countries for jobs in labor-intensive industries. 

In theory, competitive advantage predicts that countries tend to specialize in specific areas where their economies are more productive, instead of producing all the goods and services they need at home. But why is there a perception that the labor force in developed countries is still superior and 'high-quality'? Discrimination is also occurring in labor.