GUOYING-Reading 4: “What is the relation between economics and globalization?”.

1. Summary                                                                       Through reading the article Economic globalization, I learned about the key role of transnational corporations in the process of globalization. Multinational companies spread production and operations across multiple countries and regions through the expansion of global production chains, capital flows, and market networks to reduce costs, increase efficiency, and maximize profits. This process has broken down traditional national economic boundaries and promoted the integration of the global economy. In addition, multinational corporations pose a challenge to national economic policy because they are often outside the control of a single country and are often able to tap resources, labor, and markets across the globe without being constrained by national economic policy. While globalization has boosted global economic growth, it has also increased inequality on a global scale, especially between developed and developing countries. Developing countries often rely on low-cost labor and resources provided by multinational corporations, which leads to their relative weakness in the global economy, further exacerbating economic disparities between countries around the world.

2.What is the relation between economics and globalization？ 

1）The dominance of multinational corporations in the global economy: Multinational corporations play a key role in the process of economic globalization. Through internationalization, global production chains and global markets, multinational companies are able to distribute resources, capital, production and sales networks across multiple countries and regions to maximize profits and efficiency.

2）The formation of global production networks: multinational companies break traditional national boundaries and local economic models through global production and supply chains. This global production network allows companies to optimize their production and operations in different countries and regions based on costs, resources and market needs.

3）Capital flow and economic integration: Globalization promotes the free flow of capital, and transnational corporations enhance the integration of the global economy through investment, mergers and acquisitions, capital markets, etc. This process strengthens the interdependence of national economies, and also leads to the dependence and restriction of some countries on the economic power of transnational corporations.

4）Globalization and the challenges of national economic policy: Transnational corporations have gradually weakened national control over the economy in the process of globalization. Traditional national economic policies are increasingly influenced by the actions of multinational corporations, which often operate on a global scale and are not bound by a single national economic policy, posing a challenge to national sovereignty.

5）Globalization and the challenges of national economic policy: Transnational corporations have gradually weakened national control over the economy in the process of globalization. Traditional national economic policies are increasingly influenced by the actions of multinational corporations, which often operate on a global scale and are not bound by a single national economic policy, posing a challenge to national sovereignty

In conclusion, I believe that economic globalization is mainly realized through the internationalization of multinational corporations and the development of global production networks. The global capital flow, production and sales of transnational corporations have broken the economic barriers between countries and promoted the integration of the global economy. However, this process of globalization has also made national economic policies more challenging, as multinational corporations have greater global influence, weakening state control over the economy. At the same time, globalization has exacerbated economic inequality and development gap between countries in the world, especially between developed and developing countries.




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