What is the relation between economy and globalization?——HONG HAOTIAN

 The relationship between the economy and globalization is a dynamic interplay: the economy serves as a key driving force behind globalization, while globalization profoundly influences economic development and patterns. As globalization deepens, international trade, capital flows, transnational investment, and technological diffusion have become core drivers of economic growth, shaping a highly interconnected global economic system. Globalization breaks down national barriers, facilitating the global flow of production factors such as capital, labor, technology, and information. This enables more efficient allocation of resources, optimizing their use and enhancing productivity.

 For instance, multinational corporations establish production bases in different countries, driving the dissemination of technology and management expertise, while creating more employment opportunities and development prospects for developing countries. Additionally, globalization has deepened the interdependence of national economies. The formation of global supply chains has made countries inseparable in their economic activities, and the interconnectedness of financial markets allows economic fluctuations in one country to quickly ripple across the globe.

 However, economic globalization brings not only opportunities but also significant challenges. While globalization generates wealth, it also exacerbates income inequality, leaving many developing countries stuck at the lower end of the global value chain, unable to secure long-term economic advantages. Moreover, issues such as resource overexploitation and environmental pollution are particularly pronounced in the context of globalization. Cultural conflicts and cultural homogenization have also emerged as concerns for societal development.

 At the same time, governments must balance local needs with the pressures of international competition when formulating policies. They integrate into the global economic system through open trade policies, attracting foreign investment, and participating in multilateral cooperation. In this process, addressing environmental issues, social inequality, and economic volatility brought about by globalization becomes paramount.

 Thus, the relationship between the economy and globalization reflects not only the tremendous potential for economic development but also the complex challenges posed by globalization. Countries need to achieve sustainable development in the context of globalization through international cooperation and policy innovation.

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