Economic Globalization

Summary

Economic globalization is an inevitable trend of socialized mass production, it marks an advanced mode of production and is the economic foundation of future society. We can analyze from four aspects. First, global resources can be allocated most effectively and rationally. Effective division of labor and cooperation on a global scale can generate huge new productivity, and the rational allocation of resources makes possible the sustainable development of the global economy. Secondly, the company's production factors are optimally configured globally, so that the most advanced products can be developed, the most economical cost and the closest market can be obtained, thereby having the greatest competitiveness. Third, a person can receive education and information on a global scale, compete on a global scale, and thereby maximize his or her own potential. At the same time, through global selection and practical testing, people's talents can be fully self-fulfilled. Finally, whether it is to meet the needs of material life or spiritual and cultural needs, people have the opportunity to obtain the most advanced and cheapest consumption from the world, and at the same time, it is the most suitable for their individual needs. It can be seen that economic globalization is not only a space-advanced method, but has also opened the way for more advanced production methods by mankind. As far as the nature of economic globalization is concerned, it is the market economy worldwide. It advocates minimizing the intervention of ZF in the world, giving full play to the role of prices and profits in the market, and establishing a completely competitive market model. The global economy, through the "invisible hand" of the market economy, allows various production factors or resources to flow freely around the world, thereby achieving the optimal allocation of production factors or resources worldwide.

Interesting points and discussion

However, economic globalization has recently stagnated. The reason is that the income distribution of different groups within a country has deteriorated. In the booming stage of economic globalization, the Gini coefficients of major developed countries have increased to varying degrees, which is closely related to the deepening of the international division of labor: compared with those who are more disadvantaged, those who are in more advantageous industries The benefits will be greater. It is also to be seen more deeply that this deterioration in income distribution is largely related to government inaction. And international economic rules cannot adapt to the requirements of labor movement across countries. As a factor of production, theoretically, the labor force should realize the free cross-border flow as well as capital and technology. But in fact, this kind of movement has never really been realized. The root cause is the lack of multilateral rules that guarantee the free movement of labor across countries

How to solve such problems well is also worth thinking about.