Blog4: What is the relation between economy and globalization?—WU SHUHAN

 The relationship between the economy and globalization is profound and complex. Globalization refers to the increasing interconnection of countries across economic, cultural, and political spheres, and economic factors are a central driving force behind this process. According to Peter Dicken's analysis in *Economic Globalization*, globalization is not just about physical or cultural connections; economic globalization primarily occurs through the interaction of international trade, foreign direct investment, and global financial markets. As global trade barriers have gradually been eliminated and multinational corporations expand, the flow of goods, capital, and labor has become more frequent, interlinking economic activities across countries and increasing mutual dependence.


Economic globalization has brought growth and prosperity to many countries, especially in developing nations, where foreign investment has driven technological progress, industrial upgrades, and job creation. However, this process has also brought several challenges. While some countries and regions have benefited from globalization, others face resource depletion and imbalanced economic structures, leading to widening wealth gaps. In developed countries, low-skilled industries may suffer from outsourcing, while low-income groups in developing nations often do not share in the wealth generated by globalization.


Moreover, globalization has intensified the concentration of economic power. Multinational corporations and large financial institutions dominate the global economy, influencing international trade, investment flows, and national policies, even eroding the economic sovereignty of many governments. This unequal distribution of power has resulted in global economic inequality, with developing countries often at risk of marginalization.


Despite these issues, globalization remains a key feature of the modern economy, driving market expansion, technological advancements, and the formation of global production chains. Understanding the complexity of economic globalization not only helps identify its opportunities but also allows us to address its potential challenges. Overall, while economic globalization has strengthened connections between countries, it has also exacerbated social and economic inequalities on a global scale. Finding ways to achieve fairness and sustainable development in the process of globalization remains an important issue we must confront.


WU SHUHAN

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