Economic Globalization--SU YIQI

  Economic Globalization refers to the process of an organic global economy that transcends national boundaries and is formed through foreign trade, capital flow, technology transfer, service provision, interdependence and interconnectedness. Economic globalization is the transnational and inter-regional flow of production factors such as goods, technology, information, services, currency, personnel, capital and management experience, which means that the world economy is increasingly becoming a closely linked whole. Economic globalization is one of the important features of the contemporary world economy, and it is also an important trend of world economic development.

 With the development of world economy with the increasing communication, economic globalization has become an unstoppable trend.In general, the economic globalization is a phenomenon that there are a miraculous number of flows in the whole world about goods, services, technique, money, capital, and so on, leading to close connection between states. Under the catalysis of modern information technique, capital, technique, labor and other production factors flow on a global scale and configuration, each state's economy is more and more deeply involved in a unified world market system,economic interdependence between state and national reaches an unprecedented breadth and depth.

 Economic globalization is conducive to the rational allocation of resources and production factors in the world, to the global flow of capital and products, to the global expansion of science and technology, and to 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. In particular, 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. The urgent problem in economic globalization is to establish a fair and reasonable new economic order to ensure the fairness and effectiveness of competition. Economic globalization refers to the globalization of trade, investment, finance, production and other activities, that is, the optimal allocation of production factors on a global scale. At its root, it is the product of the high development of the productive forces and the international division of Labour, which requires further crossing of national and national boundaries. Since the beginning of the 21st century, economic globalization and the in-depth development of transnational corporations have not only brought great impetus to world trade, but also brought many uncertain factors to the economy and trade of various countries, resulting in many new features and new contradictions.

 The factors leading to the rapid development of economic globalization are as follows: First, the progress of science and technology and the development of productive forces. The progress of science and technology and the development of productive forces have provided a solid foundation for economic globalization. In particular, the revolution of information technology since the 1970s has not only accelerated the speed of information transmission, but also greatly reduced the cost of information transmission. It has broken the restrictions of various regions and even countries, and linked the whole world together like never before. It has promoted the rapid development of economic globalization. Secondly, the development of multinational corporations. Transnational corporation provides a suitable form of enterprise organization for economic globalization. Transnational corporations make use of the advantages of various places to organize production on a global scale, 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. Finally, changes in the economic system of countries. Since the 1990s, the traditional planned economy countries have abandoned the planned economy system and turned to the market economy. In order to get rid of economic stagflation, the developed capitalist countries weakened the state's control over the economy and strengthened the spontaneous adjustment of the market mechanism. At the international level, with the establishment of the World Trade Organization, its members' control over their own or regional markets has been greatly relaxed, and the process of trade and investment liberalization has been accelerated. All these provide a suitable physical environment and policy conditions for the flow of international capital, the expansion of international trade and the large-scale implementation of international production, and promote the development of economic globalization

 Economic globalization is the product of the development of the world economy and science and technology. To a certain extent, it has adapted to the requirements of the further development of productive forces and promoted the rapid economic development of all countries. But at the same time, the development of the world economy also contains huge risks. Economic globalization has linked the economies of all countries in the world. While promoting economic cooperation among countries, economic fluctuations in one country may affect other countries and even affect the whole world, aggravating the instability of the global economy and posing a great threat to the economic security of developing countries in particular.