Reading 4: “What is the relation between economics and globalization?”—XU KEYING

   Economic globalization, as one of the most prominent economic phenomena of the twenty-first century, has penetrated every corner of the world, profoundly changing the global economic landscape and the development trajectory of all countries.This process is like a double-edged sword, bringing unprecedented opportunities and prosperity as well as challenges and risks that cannot be ignored.

   First, economic globalization has greatly facilitated the integration and expansion of the global market.With the lowering of trade barriers, the rapid development of information technology and the rapid rise of transnational corporations, the links between the economies of various countries have become increasingly close, and commodities, technology, information and so on can flow freely on a global scale.This not only provides enterprises with a broader market space, promotes the optimal allocation of resources and efficiency, but also promotes the rapid growth and prosperity of the global economy.At the same time, economic globalization also promotes the international division of labour and cooperation, enabling countries to participate in the global production network according to their own strengths, and achieving mutual benefits and win-win situations.

   However, the two-sided nature of economic globalization has also become increasingly evident.On the one hand, globalization had intensified international competition, putting some countries and regions at a competitive disadvantage or even at risk of marginalization.Developing countries, in particular, often find it difficult to occupy a favourable position in the global market because of their weak economic base and backward technological level, leading to a further widening of the gap between the rich and the poor.On the other hand, globalization has also brought about an increase in financial risks and instability.With the acceleration of capital flows and the globalization of financial markets, financial crises are more likely to spread and proliferate among different countries, posing a serious threat to the global economy.

   In addition, economic globalization has had far-reaching environmental and social impacts.Large-scale transnational production and consumption activities have exacerbated environmental pollution and resource depletion, putting enormous pressure on the Earth's ecosystem.At the same time, globalization had exacerbated social inequalities and cultural conflicts, putting some vulnerable groups and cultural traditions at risk of marginalization and disappearance.

    In the face of the two-sided nature of economic globalization, countries needed to take active measures to deal with it.On the one hand, it is necessary to strengthen international cooperation and coordination, jointly formulate and improve international economic rules, and promote the construction of a new type of international economic relations that are open, inclusive and win-win.On the other hand, domestic reform and innovation should be strengthened in order to enhance economic competitiveness and risk-resistance and ensure sustainable development in the process of globalization.