What is the relation between economy and globalization? ——XI JIAXIN
Economy and globalization are closely linked, promoting and influencing each other. This relationship is mainly reflected in the following aspects. First, globalization provides new impetus and opportunities for economic growth. Globalization has opened markets to each other and lowered trade barriers. This enables companies to break through the limitations of their home market and enter a broader international market. For example, companies in many emerging market countries have achieved economies of scale and reduced unit production costs by exporting goods to developed countries. At the same time, multinational companies allocate resources globally to find the lowest cost and most efficient production locations. They set up factories in countries with abundant labor resources and set up research and development centers in technologically advanced regions, and this optimal allocation of resources has greatly improved production efficiency and promoted global economic growth. Glo...