Blog Assignment 4 : Economic Globalization ZHANG ZEHUA

Economic globalization is the flow of production factors such as goods, technology, information, services, currency, personnel, capital, and management experience across borders and regions. This means that 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 in world economic development. Among them, the importance of multinational corporations as the main integrating force in the global economy is increasing. The vast majority of multinational corporations in the world come from developed economies. In 2002, 96 of the top 100 non-financial multinational corporations in the world. Although the share of world FDI from developing countries has increased, it remains small (about 10% of the world total). At the same time, most of the world's FDI is targeted at developed economies. Less than one-third of the world's total FDI is in developing countries. In fact, the vast majority of FDI is cross-investment between developed countries. Foreign direct investment in developing countries is substantial and growing. But this is far lower than popular belief, and in any event it is highly concentrated in a very small number of countries, mainly in East Asia and, to a lesser extent, in parts of Latin America. However, the number of multinational companies from major developing countries is undoubtedly increasing. Multinational corporations in the global economy are becoming increasingly diverse.

Economic globalization is beneficial to the rational utilization and optimal allocation of production factors in various countries around the world, promotes the improvement of international competitiveness and the development of international division of labor, greatly increases productivity and the reasonable optimization of economic structure, and also promotes the development of a multi-polar global economy. 

For example, 1.Volt cars have their parts and components from all over the world. Permanent establishments are established in countries or regions with these advantageous resources, and then are assembled and produced, which reduces production costs and improves production efficiency;2.Dell's notebook supply chain covers all parts of the world and has diversified design and manufacturing capabilities. Dell works with suppliers around the world to ensure that every component is produced to the highest quality and standards to meet the needs of different markets. This global operation allows Dell to sell its products in different countries and provide a broader market and customer base. Dell continues to promote technological and market advancement through independent research and development and independent production, becoming one of the leaders in globalization.

But it also brings bad aspects, such as 1. The more developed capitalist countries in the West occupy a dominant position and have greater advantages in economic globalization. In economic globalization, the essence and regular characteristics of capitalism will be fully reflect. 2. The law of uneven capitalist development will play a more prominent role, leading to more intense and acute market competition and national conflicts between countries. 3. A few powerful countries single-handedly control global economic affairs, causing the principles of equality and mutual benefit and international cooperation to be undermined. 4. Ethnic frictions, economic crises and political and economic shocks in local areas are also easy to spread and expand around the world, increasing the instability and uncertainty of international political and economic conditions.

Discussion

How to control the risks of economic globalization increasing the polarization between rich and poor and social inequality in nation-states？