What is the relation between economy and globalization? SHENZIHE

 The economy and globalization are closely intertwined, mutually promoting and influencing each other.


Globalization promotes economic development


• Market expansion: Globalization has broken down trade barriers among countries, enabling enterprises to enter the global market. For example, many multinational corporations can sell their products all over the world, greatly expanding the market scope. The Coca - Cola Company, for instance, whose products are sold in more than 200 countries and regions, benefits from the market opening brought about by globalization.


• Optimal allocation of resources: Each country can obtain resources on a global scale. Resource - rich countries can export resources, while countries with developed manufacturing industries can import resources for production. For example, the oil in the Middle East is exported all over the world, providing power support for the industrial production of oil - importing countries.


• Technology and knowledge dissemination: Advanced technology and management experience spread globally. Developing countries can introduce foreign capital and technology to enhance their own productivity. For example, China has promoted the upgrading of its manufacturing industry through the introduction of advanced foreign - technology production lines.


Economic development affects the process of globalization


• Economic strength and global influence: Economically powerful countries have more say in the formulation of global economic rules and trade negotiations. For example, economies such as the United States and the European Union, by virtue of their economic strength, play a crucial role in international institutions such as the World Trade Organization and influence the rules and direction of globalization.


• The role of multinational corporations: Multinational corporations are an important vehicle for economic globalization. The development level of a country's multinational corporations will affect its position in globalization. For example, the layout of Japanese and Korean multinational corporations in the global electronics, automotive and other industries has promoted the in - depth integration of their domestic economies with the global economy.


• Regional economic integration: The formation of regional economic groups is also the result of economic development and, at the same time, promotes globalization. For example, the European Union, through measures such as the establishment of a unified market and a unified currency, has strengthened economic ties within Europe and also had an important impact on the global economic landscape.

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