Reading Assignment 4: Economic Globalization -- GAO PEIYUN

 —Summary

Economic globalization refers to the whole process of global organic economy which transcends national boundaries and forms through foreign trade, capital flow, technology transfer, service provision, interdependence and interrelation. Economic globalization refers to the transnational and trans-regional flow of production factors such as goods, technology, information, services, currency, personnel, capital and management experience. In other words, the world economy is increasingly becoming a closely connected whole. Economic globalization is one of the important features of the contemporary world economy and an important trend of world economic development. The International Monetary Fund (IMF) believes that "economic globalization refers to the increase in the scale and form of cross-border trade in goods and services and capital flows, as well as the extensive and rapid spread of technology, which makes the world's economies more interdependent". According to the Organization for Economic Cooperation and Development (OECD), "Economic globalization can be seen as a process in which economies, markets, technologies and forms of communication are becoming more global and less national and local."

Economic globalization is conducive to the rational global allocation of resources and production factors, the global flow of capital and products, the global expansion of science and technology, and the economic development of underdeveloped regions. It is a manifestation of human development and progress and an inevitable result of world economic development. However, it is a double-edged sword for every country, which is both an opportunity and a challenge.

Since the beginning of the 21st century, economic globalization and the deepening development of transnational corporations have not only brought significant impetus to world trade, but also brought many uncertainties to the economy and trade of various countries, resulting in many new features and new contradictions. Transnational corporations provide a suitable form of enterprise organization for economic globalization. Transnational corporations make use of the advantages of different places to organize production in the global scope, which greatly promotes the global flow of various production factors and the international division of labor, and thus greatly promotes the process of economic globalization.

Transnational corporations are the most active international actors except countries in today's world economy and the main organizers of today's world economic activities. As the product of the internationalization of production and capital, the rapid development of transnational corporations not only strengthens their position and role in the world economy, but also further promotes the internationalization of production and capital, the deepening of the international division of labor and the development of economic globalization in production, investment, trade, finance, technology development and other aspects. It has promoted the process of economic globalization and the development of the world economy.

—Interesting point

Economic globalization has shown great vitality and has had a huge impact on all aspects of the economy, politics, military, society, culture and even the way of thinking of all countries in the world. This is a profound revolution, which no country can avoid. The only way is to adapt to it, actively participate in economic globalization, and be tested in the tide of history.

—Discussion point

Developing countries with weak economic strength and relatively backward science and technology will face more severe risks and challenges in the face of fierce global competition. If economic globalization is not promoted effectively, a small number of developing countries will suffer from economic crisis, government bankruptcy, social unrest and setbacks in the promotion of economic globalization. How can we protect the interests of every country under the economic globalization?

Economic globalization has become an accelerant of the global financial crisis. In the context of economic globalization, is the local economic shock likely to cause the global financial crisis?