What is the relation between economy and globalization? Wu Wenhao

  Wu Wenhao  2021080464                           

What is the relation between economy and globalization?

1. Summary of the Reading/Topic

The relationship between the economy and globalization is honestly one of the most fascinating and complicated dynamics of our time. Globalization isn’t just a buzzword—it’s a massive force that has redefined how economies work. Basically, globalization allows countries, businesses, and even individuals to connect in ways that weren’t possible before. It’s like this huge network where goods, services, and money flow across borders. Economists often highlight the benefits, like access to new markets and cheaper resources, but it’s not all rainbows and sunshine. The reality is, globalization can hit local economies hard, especially in smaller or less competitive countries.

One major theme I got from studying this topic is how globalization forces countries to rethink their strategies. For instance, nations that want to compete globally often focus on their strengths—whether that’s manufacturing, technology, or agriculture. But at the same time, these countries become more dependent on each other, which can lead to vulnerabilities. Take the 2008 financial crisis—it started in one place but spread like wildfire because of how connected everything is now.

Globalization also changes the rules of the game when it comes to economic power. Big players like multinational corporations and international organizations have more influence now than ever. This shift means that the traditional idea of “economic sovereignty” (basically, countries controlling their own economies) is getting more complicated.

2. What is the Relation Between Economy and Globalization?

To me, the economy and globalization are like two sides of the same coin—they’re inseparable. Globalization pushes economies to open up and adapt to new opportunities, but it also creates challenges. For example, the free flow of trade and investment boosts economic growth, but it also makes countries more interdependent. This interdependence can be a double-edged sword. On one hand, it helps countries share resources and technology. On the other, it means that a crisis in one part of the world can quickly affect everyone else.

One thing that stands out is how globalization reshapes priorities. Countries are no longer just competing with their neighbors; they’re competing on a global scale. For instance, China focuses on manufacturing while the U.S. leans on tech innovation. But this isn’t just about competition—globalization also forces collaboration. Issues like climate change or financial stability require teamwork because no single country can tackle them alone.

    That said, globalization doesn’t treat everyone equally. Wealthier countries often set the rules, and smaller economies have to play along. This imbalance raises questions about fairness and inclusion in the global economic system.

3. New, Interesting, or Unusual Insights

Something that really caught my attention is how globalization impacts everyday people, not just businesses or governments. For example, the rise of global value chains (GVCs) is pretty mind-blowing. Companies now spread their production processes across multiple countries. A product like an iPhone isn’t made in just one place—it’s designed in the U.S., parts are sourced from different countries, and it’s assembled in China. This system is efficient, but it also shows how deeply interconnected economies have become.

Another thing I found surprising is how globalization affects local cultures and industries. People often assume globalization wipes out traditions, but it’s more nuanced than that. For example, global trends might influence local businesses, but these businesses adapt in ways that keep their unique identity alive. It’s like a blend of global and local forces, which some call “glocalization.”

Lastly, the role of digital globalization really stood out to me. Unlike traditional globalization, which is about physical trade and investment, digital globalization revolves around data and technology. Companies like Amazon and Alibaba are prime examples of how e-commerce is reshaping the global economy. It’s a whole new frontier, and it’s moving faster than anyone expected.

4. Question or Discussion Angle

One thing I’m still curious about is how globalization can be more inclusive. Right now, it seems like wealthier countries and big corporations benefit the most, while smaller or developing nations often get left behind. For instance, global trade agreements often favor the bigger players. How can we create systems that genuinely level the playing field?

Another question is about the role of technology. While it connects people and economies, it also disrupts jobs and industries. Automation, for example, is great for productivity but can leave workers in certain sectors unemployed. How can governments balance embracing new technology while protecting their workforce?

Finally, I think it’s important to look at the environmental impact of globalization. With all this trade and industrialization, the planet is paying a big price. How do we make globalization more sustainable without slowing down economic progress?

5. Suggestions for Future Students

As college students, we shouldn’t just focus on textbook definitions when exploring this topic; instead, we need to pay attention to real-world examples. Understanding the theory of economic globalization is one thing, but seeing how it impacts everyday life—like the process of making a product or the disappearance of certain jobs—makes the concept much more tangible and meaningful. At the same time, it’s important for us to think critically about both the positives and negatives of globalization. It’s easy to get drawn into the big picture, but details, such as how smaller countries struggle in global trade, are equally significant. Pairing readings on economic globalization with topics like digital globalization or economic inequality can provide us with a more well-rounded perspective.