Economic Globalization

Introduction

Thedefinitionofeconomicglobalization

Theterm"economicglobalization"wasfirstproposedbyT.Levyin1985,andthereisnorecognizedDefinition.TheInternationalMonetaryFund(IMF)believesthat:"Economicglobalizationreferstotheincreaseinthescaleandformofcross-bordertradeingoodsandservicesandcapitalflows,aswellasthewideandrapidspreadoftechnologythathasincreasedtheinterdependenceoftheworld'seconomies."

TheOrganizationforEconomicCooperationandDevelopment(OECD)believesthat"economicglobalizationcanberegardedasaprocessinwhichtheeconomy,market,technologyandcommunicationformsarebecomingmoreandmoreglobal.,Nationalityandlocalityaredeclining".Tothisend,economicglobalizationcanbeunderstoodfromthreeaspects:oneistheincreasingdegreeofeconomictiesandinterdependenceamongcountriesintheworld;thesecondistheconstantconvergenceofdomesticeconomicrules;thethirdisthestrengtheningofinternationaleconomiccoordinationmechanisms,thatis,variousmultilateralOrtheroleofregionalorganizationsincoordinatingandrestrainingtheworldeconomyisgettingstrongerandstronger.Generallyspeaking,economicglobalizationisbasedonthemarketeconomy,usingadvancedtechnologyandproductivityasthemeans,ledbydevelopedcountries,andaimedatmaximizingprofitsandeconomicbenefitsthroughthedivisionoflabor,trade,investment,multinationalcompaniesandfactors.Mobility,etc.,theprocessofrealizingthedivisionoflaborandcooperationinthemarketsofvariouscountries,andtheprocessofmutualintegration.

Economicglobalizationisconducivetotherationalallocationofresourcesandproductionfactorsaroundtheworld,isconducivetotheglobalflowofcapitalandproducts,isconducivetotheglobalexpansionofscienceandtechnology,andisconducivetopromotingeconomicdevelopmentinunderdevelopedregions.Developmentisamanifestationofhumandevelopmentandprogressandaninevitableresultofworldeconomicdevelopment.Butitisadouble-edgedswordforeverycountry,bothanopportunityandachallenge.Especiallyfordevelopingcountrieswithweakeconomicpowerandrelativelybackwardscienceandtechnology,therisksandchallengestheywillencounterwillbemoresevereinthefaceoffierceglobalcompetition.Theurgentproblemineconomicglobalizationistoestablishafairandreasonableneweconomicordertoensurethefairnessandeffectivenessofcompetition.Economicglobalizationreferstotheglobalizationoftrade,investment,finance,productionandotheractivities,thatis,thebestallocationofproductionfactorsonaglobalscale.Atitsroot,itistheproductofthehighdevelopmentofproductivityandinternationaldivisionoflabor,whichrequiresfurthercrossingofnationalandnationalboundaries.Sincethebeginningofthe21stcentury,economicglobalizationandthein-depthdevelopmentofmultinationalcorporationshavenotonlybroughtmajorimpetustoworldtrade,butalsobroughtmanyuncertainfactorstotheeconomyandtradeofvariouscountries,causingthemtoappearmanynewcharacteristicsandnewdevelopments.contradiction.

Formingfactors

First,thefundamentalfactoristheresultofthedevelopmentofproductivity.

Second,thedevelopmentofhightechnology,especiallythedevelopmentofinformationtechnology,haslaidthematerialandtechnologicalfoundationforeconomicglobalization.

Three,thedevelopmentofmarketeconomyinmoreandmorecountriesistheinstitutionalguaranteeforeconomicglobalization.

Fourth,theliberalizationofinternationaltradeandinvestmentisthedirectcauseofeconomicglobalization.

Fifth,theinternationalizationofcorporateoperations,especiallytherapidglobalexpansionofmultinationalcompanies,hasplayedaroleinpromoting.

Proposingtheconcept

Theterm"economicglobalization"issaidtohavebeenfirstproposedbyTeLeviin​​1985,butthereisnouniversallyaccepteddefinition.

Someoneanalyzesfromtheperspectiveofthedevelopmentoftheproductivitymovementandbelievesthateconomicglobalizationisahistoricalprocess.Ontheonehand,intheworld,theeconomiesofcountriesandregionsareintertwined,influenced,andintegratedintoaunifiedwhole,thatis,a"globalunifiedmarket"isformed;ontheotherhand,globalrulesthatregulateeconomicbehaviorhavebeenestablishedworldwide,Andestablishedaglobalmechanismforeconomicoperationonthisbasis.Inthisprocess,themarketeconomydominatestheworld,withproductionfactorsflowingfreelyandoptimallydistributedonaglobalscale.Therefore,economicglobalizationreferstothehistoricalprocessinwhichproductionfactorscrossnationalbordersandfreelyflowaroundtheworld,andcountriesandregionsmergeintoawhole.

Someonealsoanalyzesfromtheperspectiveofproductionrelationsandbelievesthat"economicglobalization"isactuallytheuseoftechnologicalprogressbydevelopedcountriesandmultinationalcompaniesrepresentedbytheUnitedStatestocontroltheworldeconomyinthenameofliberalization.Infact,thehistoricalprocessofmakingdevelopedcountriesricherandricheranddevelopingcountriespoorerandpoorer.

Sincethe1990s,therapiddevelopmentofhighandnewtechnologycenteredontheinformationtechnologyrevolutionhasnotonlybrokenthroughnationalboundaries,butalsonarrowedthedistancebetweencountriesandregions,makingtheworldeconomymoreandmoreintegrated.Buteconomicglobalizationisa"double-edgedsword."Ithaspromotedthegreatdevelopmentofglobalproductivity,acceleratedthegrowthoftheworldeconomy,andprovidedararehistoricalopportunityforafewdevelopingcountriestocatchupwithdevelopedcountries.Atthesametime,ithasalsointensifiedinternationalcompetition,increasedinternationalspeculation,increasedinternationalrisks,andcausedaseriousimpactonnationalsovereigntyandthenationalindustryofdevelopingcountries.What'smoreseriousisthatineconomicglobalization,duetodifferentstrengths,developedcountriesandmultinationalcompanieswillbenefitthemost,whiledevelopingcountrieswillbenefitlittle.Therefore,thegapbetweendevelopingcountriesanddevelopedcountrieswillbefurtherwidened,andsomeleastdevelopedcountrieswillbeexcludedfromeconomicglobalization,increasingly“marginalized”,andevenbecome“newtechnologies”fordevelopedcountriesandmultinationalcompanies.colony".

Economicglobalizationhasshownstrongvitalityandhascausedahugeimpactonallaspectsoftheworld’seconomy,politics,military,society,culture,andeventhewayofthinking.Thisisaprofoundrevolution,andnocountrycanavoidit.Theonlywayistoadapttoit,activelyparticipateineconomicglobalization,andbetestedinthetideofhistory.

Tradeliberalization

Withtheaccelerateddevelopmentofglobaltradeingoods,services,andtechnology,economicglobalizationhaspromotedtheformationoftheworld’smultilateraltradingsystem,therebyacceleratingthedevelopmentofinternationaltrade.Thegrowthratehaspromotedthedevelopmentofglobaltradeliberalization,andhasalsoallowedmemberswhohavejoinedtheWTOtoregulatetheirbehaviorwithuniforminternationalstandards.

Productioninternationalization

Asthefundamentaldrivingforceforthedevelopmentofhumansociety,productivityhasgreatlypromotedtheexpansionoftheworldmarket.ThetechnologicalrevolutionmarkedbytheInternethasreducedthedistancebetweencountriesintermsoftimeandspace,haspromotedtremendouschangesinthestructureofworldtrade,andhaspromotedthetransnationalflowofproductionfactors.Itnotonlyputsforwardinternalrequirementsforproductiontotranscendnationalboundaries,butalsocontributestoglobalization.Preparingtheconditionsforproductionisthefundamentaldrivingforceforpromotingeconomicglobalization.

CapitalGlobalization

Aworldwidenetworkoffinancialinstitutions,alargenumberoffinancialbusinessesarecarriedoutacrossborders,andasystemofcross-borderloans,cross-bordersecuritiesissuance,andcross-bordermergersandacquisitionshasbeenformed.Theworld'smajorfinancialmarketsaremutuallyconnectedintimeandpricesarelinkedtoeachother,andtransactionsoftensofbillionsofdollarscanberealizedinafewseconds.Inparticular,theforeignexchangemarkethasbecomethemostliquidandall-weathermarketintheworld.

Scienceandtechnologyglobalization

Itreferstotheoptimalallocationofscienceandtechnologyresourcesinvariouscountriesonaglobalscale.Large-scalecross-bordertransferofresearchanddevelopmentcapabilities,andcross-borderjointresearchanddevelopmentarewidespread.Takingtheinformationtechnologyindustryasatypicalrepresentative,thetechnicalstandardsofvariouscountriesarebecomingmoreandmoreconsistent.Multinationalgiantshavecontrolledthedevelopmentoftheindustrythroughtheuseofmonopolytechnicalstandardsandobtainedalargeamountofexcessprofits.Thefourmaincarriersofeconomicglobalizationareallcloselyrelatedtomultinationalcorporations.Inotherwords,multinationalcorporationsarethepromotersandactorsofeconomicglobalizationanditscarriers.

Developmentfactors

Themainfactorsleadingtotherapiddevelopmentofeconomicglobalizationare:

Firstofall,theprogressofscienceandtechnologyandthedevelopmentofproductivity.Theprogressofscienceandtechnologyandthedevelopmentofproductivityhaveprovidedasolidfoundationforeconomicglobalization.Especiallytheinformationtechnologyrevolutionsincethe1970shasnotonlyacceleratedthespeedofinformationtransmission,butalsogreatlyreducedthecostofinformationtransmission.Variousgeographicalandevennationalrestrictionshavelinkedtheentireworldtogetherinunprecedentedwaysandpromotedtherapiddevelopmentofeconomicglobalization.

Secondly,thedevelopmentofmultinationalcompanies.Multinationalcompaniesprovideasuitableformofcorporateorganizationforeconomicglobalization.Multinationalcompaniesusetheadvantagesofvariousregionstoorganizeproductiononaglobalscale,whichgreatlypromotestheglobalflowofvariousproductionfactorsandtheinternationaldivisionoflabor,andthusgreatlypromotestheprocessofeconomicglobalization.

Finally,changesintheeconomicsystemsofvariouscountries.Sincethe1990s,thetraditionalplannedeconomycountrieshavegivenuptheplannedeconomicsystemandswitchedtoamarketeconomy.Inordertogetridofeconomicstagflation,thedevelopedcapitalistcountrieshaveweakenedthestate'scontrolovertheeconomyandstrengthenedthespontaneousregulationofthemarketmechanism.Onaninternationalscale,withtheestablishmentoftheWorldTradeOrganization,itsmembershavegreatlyrelaxedtheircontroloverthedomesticorregionalmarkets,andtheprocessoftradeliberalizationandinvestmentliberalizationhasbeenaccelerating.Allthesehaveprovidedasuitablephysicalenvironmentandpolicyconditionsfortheflowofinternationalcapital,theexpansionofinternationaltrade,andthelarge-scaleimplementationofinternationalproduction,andpromotedthedevelopmentofeconomicglobalization.

Consequences

Theprocessofeconomicglobalizationisaprocessofincreasingsocializationofproduction.Intheprocessofeconomicglobalization,socialdivisionoflaborcanbecarriedoutonalargerscale,andproductionfactorssuchascapitalandtechnologycanflowandoptimizeallocationintheinternationalsociety,whichcanbringhugedivisionoflaborbenefitsandpromotethedevelopmentofworldproductivity.Becauseadvancedcapitalistcountrieshaveadominantpositionintheprocessofeconomicglobalization,haveagreatersayinformulatingtradeandcompetitionrules,andcontrolsomeinternationalorganizations,developedcountriesarethemainbeneficiariesofeconomicglobalization.Economicglobalizationalsohasapositiveimpactondevelopingcountries:Economicglobalizationistheacceleratedflowofresourcesonaglobalscale.Developingcountriescanusethisopportunitytointroduceadvancedtechnologyandmanagementexperienceinordertoachieveadvancedindustrialstructureandstrengthentheeconomy.Thecompetitivenessofdevelopingcountriescanshortenthegapwithdevelopedcountries;developingcountriescanmakefulluseoftheiradvantagesinlaborresourcesbyattractingforeigninvestmentandexpandingemployment;developingcountriescanalsousetheever-expandinginternationalmarkettosolveproductsalesproblemsanduseforeigntradePromotethedevelopmentoftheirowneconomies;developingcountriescanalsouseinvestmentliberalizationandcomparativeadvantagestoformlargemultinationalcompaniesandactivelyparticipateintheprocessofeconomicglobalizationinordertoobtaingreaterbenefitsfromeconomicglobalization.

However,thecurrenteconomicglobalizationhasnotbeeneffective.Afewdevelopingcountrieshaveencounteredeconomiccrises,governmentbankruptcies,socialunrest,andeconomicglobalizationhasbeenfrustrated.

Developmenttrend

EconomicglobalizationhasbeenanimportanttrendinworldeconomicdevelopmentsinceWorldWarII,especiallysincethe1990s.Economicglobalizationmeansthat,drivenbythenewtechnologicalrevolutionandthedevelopmentofsocialproductivitytoahigherlevel,thesocietyisinallaspectsofproduction(production,distribution,exchange,consumption)andvariouscapitalforms(monetarycapital,productioncapital,commoditycapital).)Isaprocessofmovementthatgoesbeyondnationalboundariesandiscarriedoutonaglobalscale.Theessenceofeconomicglobalizationistheglobalizationofcapital,anobjectivetrendinthedevelopmentofsocializationofproductionandtheinternationalizationofeconomicrelations.Economicglobalizationisthedevelopmentofscienceandtechnologyandsocialproductivitytoahigherlevel,thedegreeofinterdependenceandmutualpenetrationoftheeconomiesofvariouscountrieshasgreatlyincreased,thevariousbarriersthathinderthefreecirculationofproductionfactorsintheworldhavebeenweakened,andtheinternationalrulesofeconomicoperationhavegraduallyformed.Andproducedunderconditionsofcontinuousimprovement.Economicglobalizationisahistoricalprocess,anditsgerminationcanbetracedbacktothe16th-18thcentury.AftertheIndustrialRevolution,thecapitalistcommodityeconomy,modernindustry,andtransportationhavedevelopedrapidly,theworldmarkethasexpandedrapidly,andtradeexchangesbetweencountriesintheworldhavegreatlyexceededthelevelofpreviousgenerations.Sincethe1990s,economicglobalizationhasdevelopedrapidly.Ithasnowdevelopedintoatechnologyrevolutionandinformationtechnologydevelopmentastheforerunner,coveringvariousfieldsofproduction,trade,finance,andinvestment,includingtheworldeconomyandtheworldeconomy.Allaspectsofcontactandtheentireprocess.Themainmanifestationsareasfollows:theinternationaldivisionoflaborhasdevelopedfromtheverticaldivisionoflaborinthepasttoanewstageinwhichthehorizontaldivisionoflaboristhemainfocus;worldtradehasgrownrapidlyandthemultilateraltradingsystemhasbeguntotakeshape;internationalcapitalflowshavereachedanunprecedentedscale,andtheprocessoffinancialinternationalizationhasaccelerated;Theinfluenceofmultinationalcorporationsontheworldeconomyisincreasing;theroleofinternationaleconomiccoordinationisincreasing;theroleofinternationalorganizationsandregionalorganizations'interventionineconomicdevelopmentisincreasing.

Theformationanddevelopmentofeconomicglobalizationhasitsobjectiveinevitability.Thisisbecause:

First:Thenewtechnologicalrevolutionandthehighdegreeofsocializationofproductionprovidematerialconditionsforeconomicglobalization;

Second:ThehighdegreeofinternationaltradehasdevelopedintoaneconomicglobalizationInternationalizationprovidesarealisticbasis;

Third:Therapiddevelopmentofinternationalfinancehasbecomeanimportantdrivingforceforeconomicglobalization;

Fourth:ThedevelopmentofinternationalmutualinvestmenthasacceleratedtheeconomicglobalizationTheprocessoftransformation.

Impact

Differentcapitalistcountries

DuetothefactthatvariouscountriesintheworldhaveTherearehugedifferencesincultureandotheraspects,aswellastheroleoftheunbalancedlawofcapitalisteconomicandpoliticaldevelopment.Economicglobalizationwillhavedifferenteffectsondifferentcapitalistcountries.

Westerndevelopedcountriesareleadingtheeconomicglobalizationandcanhavemoreadvantagesandgainmorebenefitsintheprocessofeconomicglobalization.

First,developedcountrieshavemasteredtheworld’smostadvancedproductivityandhigh-techscienceandtechnology,andareinanadvantageouspositionintheglobaldivisionoflabor.Developedcountrieshavemasteredthefoundationofinformationtechnologythateconomicglobalizationrelieson,andtheworld’sinvestmentinresearchanddevelopment,scientificandtechnologicalstrength,andscientificandtechnologicalachievementsarealsomainlyconcentratedindevelopedcountries.Developedcountriesaretakingadvantageoftheirabundantcapital,technology,information,andtalentstoconcentrateondevelopinghigh-techandhigh-informationhigh-techindustries,whiletransferringtraditionalindustriesandgeneraltechnologicallymatureindustriestodevelopingcountries.

Secondly,multinationalcorporationsindevelopedcountriesareimportantpromotersofeconomicglobalizationandarethemaincarriersforrealizingtheflowofglobalproductionfactorsandtheoptimalallocationofresources.Theworld'slargestmultinationalcorporationsstilldominatetheglobaleconomicsituation.Amongtheworld's100largestmultinationalcorporations,onlyfivearefromdevelopingcountries.Developedcountrieshavefurtherdevelopedtheirhighlydevelopedandhighlyintensiveeconomiesthroughglobalalliances,mergersandexpansionsofmultinationalcompanies,andtheirproductcompetitivenesshasalwaysbeenintheleadingpositionintheworld.

ImpactonChina'seconomy

Asanunstoppablehistoricalwave,whatcaneconomicglobalizationbringtopeople?ThemeasureofeconomicglobalizationProsandconsandgainsandlosses,themostcriticalissueistostudywhatopportunitieseconomicglobalizationprovidesChina,andwhatrisksandchallengesitbrings.

TheopportunitiesbroughtbyeconomicglobalizationtoChinaaremainlymanifestedinthefollowingaspects:

First,itisconducivetoattractingandutilizingforeigncapital,introducingadvancedmanagementtheoriesandexperiencesfromtheworldandrealizingthemManagementinnovation.Accordingtostatistics,foreigndirectinvestmentflowingintoChinaatthebeginningofthereformandopeningup(1979-1982)totaled1.166billionU.S.dollars.Sincethen,ithasincreasedyearbyyear,andithasincreasedrapidlyinthe1990s.Bytheendof2002,ithadreached441.6billionUSdollars.Theamountofforeigndirectinvestmentactuallyusedhasbeenrankedsecondintheworldsince1993,andrankedfirstindevelopingcountries.Inthepast20years,China’sforeigndirectinvestmenthasaccountedfor32.47%ofalldevelopingcountries’foreigndirectinvestment.Aseconomicglobalizationhasrealizedtheglobalflowoftalents,capital,information,knowledge,andmaterials,Chinaisabletointroduceandabsorbadvancedmanagementtheoriesandexperiencesfromtheworld,andcarryoutmanagementinnovationsinaccordancewithChina'snationalconditions.Infact,themultinationalcompaniesenteringChinahavegivenpeoplealotofenlightenmentandreferenceintermsofoperationandmanagement.

Second,itisconducivetoacceleratingtheprocessofChina’sindustrializationandupgradingtheindustrialstructure.EconomicglobalizationhasenabledChinatobeincludedintheworldeconomicsystemmorequickly,makingfulluseoftheopportunityofindustrialrestructuringindevelopedcountries,transferringitsrelativelyadvancedlabor-intensiveindustriesorproductionlinks,andacceleratingtheprocessofChina'sindustrialization.Accordingtotheneedsofthedomesticandinternationalmarkets,continuouslyadjustandoptimizetheindustrialstructureandexportcommoditystructuretostrengtheneconomiccompetitiveness.

Thirdly,itisconducivetodeeplyparticipateintheinternationaldivisionoflabor,giveplaytotheactualandpotentialcomparativeadvantagesofthecountry,andexpandoverseasmarkets.EconomicglobalizationprovidesChinesecompanieswithopportunitiestoactivelyparticipateininternationalcompetitioninawiderrangeoffields.Theycanusetheircomparativeadvantagestoincreasetheefficiencyofresourceallocation,expandoverseasmarkets,andimprovetheircompetitiveness.

Fourth,wecanseizetheopportunitiesbroughtaboutbythenewtechnologicalrevolution,givefullplaytolate-comeradvantages,develophigh-techindustries,andachieveeconomicdevelopmentbyleapsandbounds.Economicglobalizationhaspromotedtheincreasinglyactiveglobalscientificandtechnologicalactivitiesamongscientificandtechnologicaltalentsofvariouscountries,multinationalcompanies,countriesandtheprivatesector.Iftheycanbeeffectivelyusedandactivelyparticipated,theycaneffectivelypromotetheimprovementofChina'stechnologicallevel.Chineseenterprisescanuseforeigntechnologyorinnovatebasedonthetechnologyofforeignproducts,establishanddevelophigh-techindustries,andachieveeconomicdevelopmentbyleapsandbounds.

Theimpactofmultinationalcorporations

Multinationalcorporationsarethemostactiveinternationalactorsintheworldeconomyexceptforcountries,andtheyarethemainsourceofeconomicactivitiesintheworldtoday.organizer.Asaproductoftheinternationalizationofproductionandcapital,therapiddevelopmentofmultinationalcorporationshasnotonlystrengtheneditspositionandroleintheworldeconomy,butalsofurtherpromotedtheinternationalizationofproductionandcapital,andpromotedthedeepeningoftheinternationaldivisionoflaborandtheeconomy.Thedevelopmentofglobalizationinproduction,investment,trade,finance,andtechnologicaldevelopmenthaspromotedtheprocessofeconomicglobalizationandthedevelopmentoftheworldeconomy.

1. Thedevelopmentofmultinationalcompanieshaspromotedtheglobalizationofproduction;

2. Thedevelopmentofmultinationalcompanieshaspromotedtheglobalizationofcapital;

3. Thedevelopmentofmultinationalcompanieshaspromotedtheglobalizationoftrade;

4. Thedevelopmentofmultinationalcompanieshaspromotedtheglobalizationoftechnology.

Significance

Economicglobalizationistheproductoftoday’sworldTherapideconomicdevelopmentofvariouscountries.Butatthesametime,italsobringshugeriskstothedevelopmentoftheworldeconomy.Fromtheperspectiveofthepositiveeffectsofeconomicglobalization:

Optimizationofallocationandrationalutilization

Theconstraintsofresourcesandmarkets,andonlytheintegrationofglobalresourcesandmarketscanmakeacountry'seconomygetridoftheconstraintsofresourcesandmarketsasmuchaspossibleundercurrentconditions.Economicglobalizationcanrealizeproductionunderthemostfavorableconditions,salesinthemostfavorablemarket,achievetheoptimalstateofworldeconomicdevelopment,improveeconomicefficiency,andmakeproductsmoreinlinewiththeneedsofconsumers.

Promotetheinternationaldivisionoflabor

Economicglobalizationhaspromotedthecontinuousexpansionoftheworldmarketandregionalunification,deepeningtheinternationaldivisionoflabor,andcountriescangivefullplaytotheirownadvantages,Engageintheproductionofproductsthatcanobtainthemaximumcomparativeadvantage,expandthescaleofproduction,andrealizethebenefitsofscale.Economicglobalizationcanpromotethetransferofindustriesandtheacceleratedflowofproductionfactorssuchascapitalandtechnology;itcanmakeupfortheshortageofcapital,technologyandotherproductionfactorsinvariouscountries,activelyparticipateininternationalmarketcompetition,rapidlyrealizeindustrialevolutionandinstitutionalinnovation,improvemanagement,andincreaselabor.Productivity,activelydevelopnewproducts,andimprovetheirinternationalcompetitiveness.

Promotetherationaloptimizationoftheeconomicstructure

Promotetherationaloptimizationoftheeconomicstructureandthegreaterincreaseinproductivity.Undertheconditionsofeconomicglobalization,ithasachievedaglobalScientificandtechnologicalresearchanddevelopmentwithinthescope,andenabletherapidspreadofmodernscienceandtechnologyonaglobalscale.Modernscientificandtechnologicalinnovationisworldwide.Thescientificandtechnologicalactivitiesofanycountrymustandcanonlybebasedontheexistingscientificandtechnologicalachievementsintheworld.Asthebasisforprogress.Aseconomicglobalizationbringsabouttheworldwideflowofscienceandtechnology,countries,especiallydevelopingcountries,canimportadvancedscienceandtechnologythattheyneedintheworld,andwiththehelpof"late-moveradvantage",promotescientificandtechnologicalprogress,optimizationofeconomicstructureandeconomicdevelopment.

Promotethedevelopmentofmulti-polarizationoftheeconomy

Economicglobalizationhasmadeinternationaleconomicrelationsmorecomplicated.Polarrelationsandglobalrelationshavepromotedthedevelopmentofinternationalcoordinationandcooperationmechanismsforhandlingtheserelations,andwillinevitablyleadtotheproductionofaseriesofglobaleconomicrules,whichwillmakecountriesparticipatingintheprocessofeconomicglobalizationtransferorgiveuppartoftheirsovereignty,formandcomplywithTheseeconomicrules.Therefore,inthissense,economicglobalizationisaprocessofinstitutionalchange,aprocessthatnotonlycompeteswitheachother,butalsomergesandpenetrateswitheachother.

Promotedevelopmentmodelinnovation

Globalizationpromotestheglobaloptimizationofproduction,resources,personnel,trade,investmentandfinance,andotherfactorsofproduction,reducingcostsandincreasingefficient.MultinationalcompanieshavedevelopedtothestageofglobalcompaniesthathaveestablishedR&D,production,andsaleschainsaroundtheworld.Experienceshowsthatanincreaseinacountry’seconomicopennessisdirectlyproportionaltoitspercapitaGDPgrowth.Nomatterhowacountry’sdevelopmentmodeladjustsandchanges,itisimpossibletoexploreanadvanceddevelopmentmodelwithoutconsideringglobalizationfactorsandtakingadvantageofglobalizationopportunities.

Promotetheintegrationofinternationalinterests

Theintegrationofinterestsismanifestednotonlyintheeconomicfield,butalsoinotherfields;bothinthebilateralfieldandinthemultilateralfield.Theeconomicinterdependencebetweencountrieshasgraduallydeepened,andthesituationofbothprosperityandlosshasbeguntotakeshape.Thetighteningoftheglobaleconomicchainwillincreasethedependenceofacountry'seconomicdevelopmentonglobaleconomicdevelopment.Inadditiontonationalinterests,commonregionalandglobalinterestshaveincreasedsignificantly.Theintegrationofinterestsisconducivetotheimprovementofnationalrelations,coordinationandcooperationbetweencountriesincrease,anddifferent"volunteeralliances"formedoutofdifferentinterestscontinuetoappear.Seekinghegemony,engaginginconfrontation,adheringtogrouppoliticsandtheColdWarmentalityarebecomingincreasinglyunpopular.

Promotetheexpansionofsecurityconnotation

Securityhasexpandedfromthetraditionalsecurityfieldtothenon-traditionalsecurityfield.Thethreatofnon-traditionalsecurityissuessuchasterrorism,economicsecurity,environmentaldegradation,climatewarming,epidemics,immigrationwaves,andtransnationalcrimeshasincreased,involvingawiderangeoffieldssuchaseconomy,people'slivelihood,societyandnature.Non-traditionalsecurityismainlycausedbytheunscientificdevelopmentofhumanbeingsandtheincoordinationofdevelopmentwithsocietyandnature,anditsessenceisadevelopmentissue.Non-traditionalsecurityissueshaveblurredtheboundariesbetweensecurityanddevelopment,increasedtheurgencyofinternationalsecuritycooperation,challengedthedominantpositionoftraditionalsecurity,andeasedthemilitaryconfrontationbetweencountries.Forexample,terrorismandclimatechangecannotbesolvedbyanysinglecountry.TheUnitedStateshastorelyontheinternationalcommunityinmanywaysincounter-terrorism.AnotherexampleisthattheUnitedStatesandRussiahavesharpcontradictionsontheissueofmissiledefense,buttheircooperationinthefieldofnon-traditionalsecurityisgenerallysmooth.

Promotethetransferofnationalsovereignty

Globalizationpromotesthedevelopmentofinternationalorganizations.From1990to1998alone,thenumberofinternationalorganizationsincreasedfrom26,656to48,350,includingmorethan250intergovernmentalinternationalorganizations.Intergovernmentalinternationalorganizationshavebecomethemakersandsupervisorsofglobalrules,themanagersofglobalissues,andtheresolversofglobaldisputes.Inits"UnderstandingonDisputeSettlementRulesandProcedures",theWTOcomprehensivelystipulatestheWTO'spoliticalmethods,legalmethods,rulingenforcementandsupervision,andremediesforresolvingtradedisputes,andithasestablishedaDisputeSettlementBody(DSB).Indeed,thestateisstillthemainactorintheinternationalcommunity,andnationalsovereigntyisstillthesupremerightofthecountry.However,inthecontextofglobalization,anindisputablefactisthatnationalsovereigntyisincreasinglyshiftingtointergovernmentalinternationalorganizations.Forexample,thetransferofpolitical,diplomaticandmilitarypowertotheUnitedNationsandregionalorganizations,thetransferofeconomicpowertotheWTO,theInternationalMonetaryFund,theWorldBank,andglobalcorporations,andthetransferofsocialpowertovariousothernon-governmentalinternationalorganizations.Globalizationalsopromotesthecoordinationandconsistencyofacountry'sdomesticruleswithinternationalrulesasmuchaspossible.

Promotethetransformationoftheinternationalsystem

Themaincharacteristicsofthecurrentinternationalsystemare:dominatedbytheWest,especiallytheUnitedStates,andcountriesarenominallyequalbutinfactunequal,Theroleofinternationalorganizationsislimited,hegemonismand"problemcountries"arenoteffectivelyrestricted.Thecurrentinternationalsystemisbecomingweakerandweakerindealingwithincreasingglobalproblems,anditsadjustment,improvementandtransformationarethegeneraltrend.Inthenextfewdecades,anewinternationalsystemislikelytobebasicallyformed.Itsmaincharacteristicsare:First,theworldstructureismulti-polar.Duetotherevitalizationofemergingpowersandthevastnumberofdevelopingcountries,theinternationalbalanceofpowerischanginginfavorofhowstrongisnotinfavorof"onesuper",andisbeneficialtodevelopingcountriesbutnotindevelopedcountries.Theimbalanceofthetwopowerbalancesisexpectedtobefinallyresolved.Accordingtoforecastsbyinternationalauthorities,thetop20economicpowersintheworldwillbereshuffledin2020,Chinawillleaptothesecondplaceintheworld,Russia,India,andBrazilwillleapintothetop10,andsomelargedevelopingcountrieswillleapRankedinthetop20.TheintegrationofinterestsandinterdependencebetweentheUnitedStates,China,Europe,Japan,Russia,India,Brazilandothernewpoleshaveincreased,andtheriskofsharpconfrontationsandall-outwarshasdecreased.Thesecondistheco-dominanceofWesternandnon-Westerncountries.Inthefuture,withthegraduallossofAmerica's"onesuper"statusandtheadvantagesofWesternpower,thedominantpositionoftheWestwillbedifficulttomaintain.Multipolarity,theWestandthenon-Westernwilljointlydominatethenewinternationalsystem,andthedemocratizationofinternationalrelationswilldevelop.Thethirdisthestrengtheningoftheroleofinternationalorganizations.Internationalorganizationsandinternationalruleswillbefurtherenriched,perfected,andstrengthened,andrestraintsonmajorpowersand"problemcountries"willbestrengthened.Thefourthisthediversificationofinternationalgovernance.Theincreaseinglobalissueswillpromotethediversificationofinternationalgovernancemodels,suchasnationalgovernanceandglobalgovernance,theco-governanceoflargecountriesandsmallandmedium-sizedcountries,thegovernanceofglobalinternationalorganizationsandthegovernanceofregionalinternationalorganizations,whichcombineandcomplementeachother.Fifth,itispeacefulandprogressive.Inthepast,thetransformationoftheinternationalsystemwasachievedthroughwar.Thistimethetransformationoftheinternationalsystemmaybegraduallycompletedthroughgradualimprovementthroughstruggles,negotiations,andcompromisesbetweenmajorpowersandbetweentheNorthandSouthcountrieswhilemaintaininganoverallstateofpeace.

Promotetheprogressofhumancivilization

Itispossibleformankindtoformanewcommonvalueformankindonthebasisofglobalization,globalissues,globalinterestsandglobalgovernance.ConceptsandnewhumancivilizationbreakthedominantpositionoftheWestinhumancivilizationandachieveoveralltranscendenceoverWesterncivilization.

However,economicglobalizationwasformedanddevelopedwithoutfundamentalchangesintheunfairandunreasonableoldinternationaleconomicorder.Thedominantandabsoluteadvantageineconomicglobalizationisthedevelopedwesterncapitalistcountries.Ineconomicglobalization,theinherentnatureandregularcharacteristicsofcapitalismwillbefullyreflected;theroleofthelawofunbalanceddevelopmentofcapitalismwillbemoreprominent.Marketcompetitionandethnicconflictsbetweencountrieswillbecomemoreintenseandacute;asmallnumberofmajorpowerssingle-handedlymanipulateworldeconomicaffairs,causingtheprincipleofequalityandmutualbenefitandinternationalcooperationtoberepeatedlyundermined;ethnicfrictions,economiccrises,andpoliticalandeconomicshocksinlocalareaswillalsoItisextremelyeasytospreadandexpandonaglobalscale,increasingtheinstabilityanduncertaintyofinternationalpoliticsandeconomy.

Economicglobalizationhasbroughttheeconomiesofallcountriesintheworldtogether.Thispromoteseconomiccooperationamongcountries.Atthesametime,italsomakestheeconomicfluctuationsofonecountryaffectothercountries,evenaffectthewholeworld,andexacerbatetheinsecurityoftheglobaleconomy.Stability,inparticular,posesagreatthreattotheeconomicsecurityofdevelopingcountries.

OpportunitiesforDevelopment

AfterjoiningtheWorldTradeOrganization,China’sopeningtotheoutsideworldwillenteranewstageofdevelopment.China'sgreatestdevelopmentopportunityinthe21stcenturyiseconomicglobalization.ContinuingtoopenuptotheoutsideworldandactivelyparticipatingintheprocessofeconomicglobalizationareinChina'sgreatestnationalinterest.

Atleastsofar,manyanalyseshaveshownthatthebenefitsofeconomicglobalizationarenotevenlydistributedacrosscountries.ThegapbetweenNorthandSouthiswidening.However,fromtheperspectiveofthedevelopmentperformanceofmarket-orientedreforms,Chinaisoneofthebiggestbeneficiariesofeconomicglobalization.AccordingtotheWorldBank(WorldBank,1997).Overthepast20yearsofreformandopeningup,China’sintegrationwiththeworldeconomyhasadvancedrapidly,andthelinkbetweentrade,foreigndirectinvestment,andhighdomesticsavingsrateshasbecomeakeyfactorinChina’srapideconomicgrowth.TheopportunitiesbroughtbyeconomicglobalizationtoChinaaremainlymanifestedinthefollowingaspects.

1. Globalizationcaneffectivelypromoteeconomicgrowthandmakefulluseofdomesticandforeigncapital,technology,resources,andmarkets.Thisisthemostimportantbenefitthatdevelopingcountrieshavegainedfromopeningup.Tradeandinvestmentliberalizationcaneffectivelypromotetheeconomicgrowthofacountryorregion,anditsmechanismcanbesummarizedas:throughtheuseofcomparativeadvantagestorealizetheimprovementofresourceallocationefficiency;throughexportstoexpandaggregatedemand,anddriveeconomicgrowth:throughforeigncapitaltomakeupfordevelopingcountriesOrregionalsavingsgapandforeignexchangegap;foreigninvestmentpromoteseconomicgrowthbyimprovingtheoriginalassetinventoryofinvestmentplaces,andfurtherformshigh-qualityassetsthroughnewenterprises:throughacquisitionsandmergerstoincreasetheoriginalassetinventory;bothprospectsandattractingforeigninvestmentItcanbringadvancedandpracticaltechnologyfromabroad;equipmentandscientificmanagementmethodscanachievetheso-called"breedingeffect";foreigncapitalcanaccumulatehumancapitalforeconomicgrowththroughthedevelopmentofhumanresourcesininvestmentareas.Foreign-investedenterpriseshavebecomeanimportantpartofChina'seconomy.AccordingtoastudybytheWorldBank,foreigninvestmentintheeconomyduringthe1990-1994period.ThecontributionofChina'stotalGDPgrowthrateis0.9%.Itscontributionrateis8.6%.Thiscontributionratehasexceeded10%,anditisexpectedthatthiscontributionwillcontinuetogrowinthefuture.

2. Globalizationcancreatealargenumberofnewjobs.ThetransformationofChina'seconomyfroma"shortageeconomy"typetoa"structuralsurplus"typewheresupplyexceedsdemandhasledtotheclosure,suspension,merger,transformation,anddestructionofmanyenterprises,promptingasharpincreaseinlaid-offworkersduringthisperiod.However,asfarasChina'snationalconditionsareconcerned,"developmentisthelastword"doesnotsimplymeanthatGDPgrowthisthelastword.NomatterhowlargetheGDPis,ifthereisnocorrespondingincreaseinthescaleofemployment,theemploymentproblemisveryprominent,andsocialstabilitycannotbeguaranteed.Therefore,inthefaceofthemostbasicnationalconditionsofabundantlaborresourcesandrelativelyscarcecapitalresources,Chinamustdeveloplabor-intensiveexportprocessingindustries,openupserviceindustries,andactivelyattractforeigndirectinvestment(FDI),sothatitcanusethesurpluscapitalofindustrialcountriestoserveChina'ssurpluslaborcreatesmorejobs.

3. Globalizationhelpstopromotetheconstructionofamarketeconomy.Chinahasnotonlythelackofdevelopmentmotivation,thelackofnewsourcesofinvestmentandtechnology,butalsothelackofreformmotivationandcompetition.Mechanismandeliminationmechanism.Seizingtheopportunitiesofglobalizationcaneffectivelysolvetheproblemoflackofmotivationforreformanddevelopment.TherulesoftheWTOandotherinternationaleconomicorganizationsarebasedonthemarketmechanism,andChinacanuseexternalforcestoremoveobstaclesinmarket-orientedreforms.Globalizationwillintroduceexternalcompetitionmechanisms,bringpressureandasenseofurgency,andbecomeahugedrivingforceforreformanddevelopment.

4. Chinamustcontinuetointegrateintotheworldeconomy.China’slaborresourcesaredeterminedbyChina’snationalconditions,accountingfor26%oftheworld’slaborresources;agriculturalresourcesareinshortsupply,andbotharablelandandwaterresourcesaccountforonlytheworld’s7%of:insufficientenergy.Oilandnaturalgasreservesaccountforonly2.34%and1.20%oftheworldrespectively;capitalisshort,domesticinvestmentonlyaccountsfor3.4%oftheworld'stotal;technologyisbackward,andthenumberofinternationalpatentapprovalsislessthan1%oftheworld's.ThisbasicnationalconditiondeterminesthatChinamusteffectivelydevelopandimportinternationalresourcessuchasagriculture,energyandminerals,introduceforeigncapitalandadvancedtechnology,andusetheinternationalmarkettodeveloplabor-intensiveindustries.

5. GlobalizationisanimportantwayforChinatonarrowthegapwithdevelopedcountries.TheWorldBankbelievesthatifdevelopingcountrieswanttonarrowtheeconomicdevelopmentgapwithdevelopedcountries,theymustfirstnarrowthetechnologicalgapandKnowledgegaps,andthemainwaytonarrowthesegapsisnothingmorethan:

(1)Introducingforeigndirectinvestment.

(2)Expandinternationaltrade.

(3)Technologytransferandtechnologylicense.Intheearly1980s,China’spercapitaGDPinUSdollarswasonlyequivalentto3%to4%oftheAmericanpercapitalevelbasedonthePPPmethod.By1998,ithadrisentomorethan10%oftheAmericanpercapitalevel.OneofthemostfundamentalreasonswhyChinacaneffectivelycatchupisthatChinaactivelyparticipatesintheprocessofworldeconomicintegrationandactivelyintroducesforeigncapital.Promotethegrowthofexporttrade,makefulluseofandenjoythebenefitsofinternationaldivisionoflaborandcomparativeadvantages,andmakeforeigndirectinvestmentandinternationaltradetheengineofeconomicgrowth,themainsourceofnewemploymentcreationandthemainwaytoimprovecompetitiveness.

Whetheracountrycansuccessfullyparticipateinglobalizationdependsonhowitlearnstoparticipateandgraspstheinitiativefromit.Regardingtherulesofthegameintheworldeconomy,Chinaisstudying,acknowledging,observing,using,participating,andgraduallytransitioningtorevisionandformulation.Therulesofthegameintheworldeconomyarealwayschanging,andChinamustlearntoactivelyparticipateinandformulaterulesduringchanges.

Alternativerole

Economicglobalizationhasbecomeaboosteroftheglobalfinancialcrisis

Oneofthecostsof"economicglobalization":theinstabilityoftheglobaleconomywillbecomeAnormalstate.Intheprocessof"economicglobalization",theinterdependenceoftheeconomiesofvariouscountrieshasbeenunprecedentedlystrengthened.Thedependenceonforeigntradeofmanycountrieshasexceeded30%,andsomecountrieshavereached50%-60%.Inthisenvironment,theinternationalcontagionofeconomicfluctuationsandcriseshasbecomearegularandinevitableevent.Theinternalimbalanceofanycountrywillbereflectedasanexternalimbalance,whichwillquicklyaffectthecountrieswithwhichithasclosetradeandinvestmentrelations.Intheend,itisverylikelythatallcountrieswillbebroughtintoasituationofimbalanceandcrisistovaryingdegrees.In2008,thesubprimemortgagecrisisintheUnitedStatesquicklyspreadtotheentireEuropeanregionandSoutheastAsia,formingaseriousregionalfinancialcrisis,andthenspreadingtoLatinAmerica,formingadefactoglobalfinancialturmoil.

Theexistenceofinternationalhotmoneyiscertainlyoneoftheimportantsourcesofglobaleconomicinstability.Asahugefinancialforcethattranscendsnationalborders,internationalmanufacturershavetimeandtimeagainplayedtherolesofthecreatorsorpromotersofglobalfinancialturmoilandthemainmediatorofcrisiscontagion(BIS,1997/1998).Thedollarcrisisinthe1960s,thecollapseoftheBrettonWoodssystemintheearly1970s,theLatinAmericandebtcrisisintheearly1980s,theEuropeanmonetarysystemcrisisintheearly1990s,theMexicanexchangeratecrisisin1994,andtheSoutheastAsianfinancialcrisisin1997.Shockinglydemonstratedthetremendousdestructivepowerofinternationalhotmoney.By2008,theUSsubprimemortgagecrisisandtheresultingEuropeandebtcrisis.Sincethe1960s,althougheconomistsfromvariouscountrieshavebeenexploringmethodstocontrolandsuperviseinternationalhotmoney,manycountriessufferingfromhotmoneyshockshavealsomadeeffortstostrengthencapitalcontrols.Butoverall,theresultsoftheseexplorationsandeffortsarenotobvious.

Sounderthebackgroundofeconomicglobalization,economicshocksinsomeregionsarelikelytocauseaglobalfinancialcrisis.