Blog4: What is the relation between economy and globalization? - Jeongeun Park

     What is the essential reason for globalization? To exchange cultures? For political peace? It was proceeded at a rapid pace by each country's pursuit of “economic profits.” As such, economy and globalization are the most closely related. In fact, cultural globalization also works in its own interests by exporting food, songs, dramas, and movies from each country. Also, the same goes for overseas travel. For instance, in a country with many cultural heritages such as Italy, tourism accounts for most of the national economy. I will cover trade and tourism in this essay, especially in the fields of economics.

Trade: The Backbone of Global Economic Globalization

     Trade is one of the most prominent and impactful dimensions of globalization, serving as the primary mechanism through which countries engage in economic exchange. The pursuit of economic profits has driven nations to reduce trade barriers, allowing goods, services, and technologies to move across borders with unprecedented ease. This interconnected trade system not only fosters economic growth but also shapes international relations and global power dynamics.

     During the Trump era, the United States introduced protectionist policies, such as imposing tariffs on imports and renegotiating trade agreements like the NAFTA(North American Free Trade Agreement), which was replaced by the USMCA(United States-Mexico-Canada Agreement). These measures disrupted the free-trade-driven globalization trend, emphasizing the vulnerabilities and inequalities that unchecked globalization could exacerbate. If Trump 2.0 were to continue or amplify such policies, it could significantly reshape global trade networks, particularly impacting nations like China and Germany, both of which have strong export-driven economies.

     While protectionism challenges globalization, it also highlights how economies are deeply dependent on trade. For instance, China's BRI(Belt and Road Initiative) exemplifies a counter-approach, aiming to expand trade routes and partnerships globally. Similarly, Germany's robust automobile and manufacturing industries rely heavily on international demand, underscoring how economic globalization intertwines trade with national prosperity.









     To sum up, trade remains at the heart of economic globalization, with nations continually navigating between collaboration and competition to maximize their economic benefits. The resurgence of protectionist sentiments during the Trump era, however, serves as a reminder of the fragile balance between interdependence and self-interest in global trade.



Tourism: A Catalyst for Cultural and Economic Exchange

     Tourism represents another vital facet of globalization, merging cultural exchange with economic profit. Countries with rich cultural heritages, such as Italy, France, and Egypt, have leveraged tourism as a cornerstone of their economies. From ancient ruins to culinary experiences, tourism not only generates direct revenue but also creates employment opportunities in sectors like hospitality, transportation, and retail.



     The economic impact of tourism is particularly evident in nations highly dependent on international visitors. For instance, Italy's reliance on its historical and cultural sites contributes significantly to its GDP. Similarly, countries in Southeast Asia have promoted ecotourism and cultural tourism to attract global travelers, diversifying their economies. The spread of digital platforms like Airbnb and TripAdvisor has further globalized tourism by making it more accessible to people worldwide.

     However, the rise of nationalism and travel restrictions during the Trump era highlighted the vulnerability of the tourism sector. If a Trump 2.0 era were to bring stricter immigration policies or travel restrictions, it could discourage international tourism, affecting economies reliant on this industry. Moreover, countries like Korea, which have seen a surge in “Hallyu tourism” driven by the global popularity of K-pop and K-dramas, could face challenges if cultural exchanges are hindered by geopolitical tensions or economic protectionism.

     Despite these challenges, tourism remains a powerful driver of globalization, blending economic and cultural dimensions. It not only boosts local economies but also fosters global understanding and appreciation of diverse cultures, even as political and economic policies may shift the landscape of international travel.



     To conclude, globalization, at its core, is driven by the pursuit of economic benefits, with trade and tourism standing out as prime examples of how nations capitalize on interconnectedness. Trade has been the backbone of economic globalization, fostering growth and innovation while highlighting the complexities of balancing free trade with national interests, as seen during the Trump era. Similarly, tourism showcases how cultural heritage and global exchange contribute significantly to national economies, underscoring the importance of maintaining openness even amid political or economic uncertainties.

     While globalization offers immense opportunities, it also brings challenges such as inequality, vulnerability to protectionist policies, and geopolitical tensions. The delicate interplay between collaboration and competition defines the modern global economy. As nations navigate this evolving landscape, the ability to adapt and find common ground will determine whether globalization continues to serve as a force for shared prosperity. Ultimately, trade and tourism exemplify how globalization not only enriches economies but also fosters understanding and interdependence in an increasingly interconnected world.



[References]

https://education.nationalgeographic.org/resource/global-network/

https://education.nationalgeographic.org/resource/effects-economic-globalization/

https://youtu.be/9MpVjxxpExM?si=ZaSy-xWpIe1BLkn9

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