The impact of economic globalization on human society

It should be said that economic globalization is an inevitable trend. No matter how it affects China's economic construction, China should open its door, adapt to this trend, give full play to its advantages on the world economic stage, and seize the opportunity. Opportunities, facing various challenges, as for the current impact, if you can read this article:

The cost of economic globalization

Economic globalization is bringing economic benefits to all countries At the same time, it also paid a considerable price.

One of the costs: Global economic instability will become the norm. In the process of economic globalization, the interdependence of the economies of various countries has increased unprecedentedly. In this environment, the international contagion of economic fluctuations and crises has become regular and inevitable.

Cost 2: The independence of the economic sovereignty of each country is facing increasingly severe tests. Multinational enterprises are often the main ones responsible for large-scale currency speculation. As the degree of integration gradually increases, the economies of each member state Sovereign independence continues to decline.

The third price: the gap between rich and poor worldwide is further widening. As the main owners of capital and advanced technology, developed countries have always been at the center of globalization. Competition creates efficiency, but at the same time, wealth is increasingly concentrated in a few countries or interest groups, leading to a widening gap between the rich and the poor.

Economic globalization is an inevitable trend, and China should actively participate in it

Economic globalization is specifically manifested in the globalization of production and consumption. The globalization of production means that companies look for resources not only in their own country but around the world, while the globalization of consumption means that consumers buy things not only in their own market but around the world. To engage in production and trade on a global scale, there must be unified global rules. The WTO is a multilateral trade dispute settlement mechanism. Multilateral is better than bilateral. There is at least one more authoritative arbitration institution to resolve anti-dumping and trade disputes.

People usually only see the benefits that joining the WTO will bring to China’s exports, but China’s trade gains should also be reflected in imports, which can enable consumers to buy more high-quality things. With less money to buy some goods, consumer income should be an important indicator of the national economy and people's living standards. More importantly, trade and investment have also brought about many external effects, which have greatly improved China's service quality and attitude. This is called technology spillover in economics. It is different from technology transfer in that it is income without payment.

China needs to do four things to participate in economic globalization

First, it must invigorate the market economy and make China an integral part of the world economic system.

Second, the market must be opened. Only by opening up the market can it become an integral part of the world economy. However, China is a developing country. The market cannot be fully opened immediately and unconditionally. Instead, it must be opened conditionally and step by step, and in line with its own development level. Only in this way can we create Benefits that are beneficial to both sides of the trade.

Third, international trade rules must be observed. Because the market economy is a legal economy to a certain extent, China must abide by the rules and participate in the formulation of the rules.

Fourth, the capital market must be developed. Any country that wants entrepreneurs to thrive must develop its capital markets. But although China has a high savings rate, only a small part of it flows into private enterprises, and even less goes into high-tech companies.

China’s participation in economic globalization must correctly handle three sets of relationships

The first is the relationship between opening up to the outside world and participating in globalization. We must act in accordance with internationally agreed rules. We cannot always pin our hopes on national protective measures. To participate in global trade as early as possible, we must force our enterprises to reform and make progress. Only in this way can their competitiveness be truly get improved.

The second is the relationship between narrowing the gap between domestic regions and narrowing the international gap.

The third is the relationship between expanding domestic demand and increasing foreign trade exports. China is a big country with a huge domestic market. Expanding domestic demand must be fundamental, but we cannot ignore the importance of foreign trade because of this.

New situations and new issues that China should consider when formulating its economic globalization strategy

Participating in the process of economic globalization must be based on the development of its own economy. As a developing country and a major trading country in the world, China should actively participate in the activities of international multilateral economic organizations and the formulation of international multilateral economic rules, strengthen multilateral and bilateral economic and trade cooperation, and play a positive, stable and constructive role in the development process of economic globalization. .

China participates in the process of economic globalization, advocates and follows the principles of equality, mutual benefit, and common development, recognizes the differences between different countries, and pays attention to properly handling the differences between developed and developing countries in economic globalization. interest relationship.

Continuous innovation and progress in science and technology are the foundation and conditions for economic globalization. China will adhere to the strategic policy of rejuvenating the country through science and education, use modern scientific and technological means to promote trade through science and technology, continuously improve the scientific and technological content and international competitiveness of China's foreign economic and trade, and participate in the development of economic globalization. Only by accelerating scientific and technological innovation, vigorously developing high-tech industries, using advanced technology and high-tech to transform and improve the technical content of traditional industries can China continue to promote the development of productivity and achieve a leap forward in China's technological development.

Only by continuously deepening the reform of the economic system, promoting the reform of state-owned enterprises, strengthening the construction of the market system, accelerating the transformation of government functions and the construction of the social security system, can we continue to create more favorable conditions for the development of China's productivity in terms of production relations. .

Reference materials: /news/63/64/20010418/22859.htm

The cost of economic globalization

Economic globalization is bringing economic Along with the benefits, it also paid a considerable price.

One of the costs: Global economic instability will become the norm. In the process of economic globalization, the interdependence of the economies of various countries has increased unprecedentedly. Many countries' foreign trade dependence has exceeded 30%, and some countries have reached 50-60%. In this environment, the international contagion of economic fluctuations and crises has become regular and inevitable. The internal imbalances of any country will be reflected as external imbalances, which will quickly affect countries with close trade and investment relations. In the end, it is very likely that all countries will be led into imbalance and crisis to varying degrees. The exchange rate crisis in Thailand in 1997 quickly spread to the entire Southeast Asia region, South Korea and Japan, resulting in a serious regional financial crisis. Subsequently, it spread to Russia and Latin America (including the United States for a time), forming a de facto global financial turmoil, which is the latest example of the contagion effect of the crisis.

The existence of international hot money is one of the important sources of global economic instability. As a huge financial force that transcends national boundaries, international hot money has time and again acted as the creator or promoter of global financial turmoil, and as the main mediator of crisis contagion. Today, as economic globalization continues to develop, although various effective regulatory measures can still be explored, it is impossible to completely control international hot money.

The second price: The independence of each country’s economic sovereignty is facing increasingly severe tests. The development process of the EU economy shows that as the degree of integration gradually increases, the economic sovereignty independence of each member state continues to decline. From the early customs union, unified agricultural product prices, and joint exchange rate floating, to the unified financial policy after the emergence of the single currency euro (the euro interest rate area was launched in January 1999), it all shows that the fiscal, taxation and monetary sovereignty of each member country have gradually been transferred to A supranational EU coordination mechanism. This kind of transfer of economic sovereignty has cost many member states a lot of money, and has even endangered the survival of the EU economy many times.

For other countries in the world outside the EU, in the process of economic globalization, their independence of economic sovereignty (especially in terms of fiscal, taxation and monetary policies) is also facing increasingly severe tests. . This test generally takes two different forms. One is the active transfer of economic sovereignty. From the previous tax cuts and trade liberalization negotiations under the General Agreement on Tariffs and Trade, to the economic adjustments that countries in financial crisis were forced to make in order to obtain assistance from the International Monetary Fund, these are all voluntary transfers of sovereignty to a certain extent.

The other is the erosion of economic sovereignty by transnational private economic forces. The most typical example is multinational companies. Since the strategic goals of multinational corporations are rarely completely consistent with the economic development goals of the host country, they often show an instinctive resistance and avoidance of many policy measures taken by the host country to achieve established development goals. Multinational corporations have conducted large-scale fund transfers internationally, and their negative impact on the monetary and financial policies of host countries cannot be underestimated. Obviously, in the process of economic globalization, countries that make extensive use of foreign direct investment should pay great attention to the price they pay in this regard.

The third price: the gap between rich and poor worldwide has further widened. As mentioned earlier, economic globalization is essentially a global marketization process. In this process, competition creates efficiency, and at the same time, wealth is increasingly concentrated in a few countries or interest groups, leading to a widening gap between the rich and the poor. According to World Bank statistics, in 1983, the per capita GDP of low-income developing countries was 2.4% of that of high-income developed countries, that is, the latter was 43 times that of the former; by 1994, this ratio had dropped to 1.6%, that is, The latter is 62 times that of the former. There are many specific reasons for this widening gap, but two factors cannot be ignored. First, the benefits of economic globalization are unevenly distributed. Although almost all countries participating in the globalization process have benefited from it to varying degrees, this does not mean that the benefits are shared equally. Because in fact, as the main owners of capital and advanced technology, developed countries have always been at the center of globalization. This relative advantage enables them to have the initiative in setting prices and obtain more benefits in exchanges with developing countries. Second, the decline in the nominal exchange rate leads to a decrease in the nominal value of the gross national product. The actual depreciation caused by the nominal depreciation will lead to the deterioration of the terms of trade, which will in turn lead to greater costs in international exchanges.

Is economic globalization good or bad?

Zhou Mingjie and Li Haiqing

When the 31st World Economic Forum Annual Meeting was held in Davos, Switzerland, hundreds of Demonstrators held up slogans "Get out of the World Economic Forum" and protested outside the venue. They believe that the process of economic globalization lacks fairness, and it is unreasonable for hundreds of world leaders and big company bosses to decide the future of the world behind closed doors——

Who On opposing economic globalization

Zhang Yunling (Director of the Institute of Asia-Pacific Research and Japan Research Institute, Chinese Academy of Social Sciences): Economic globalization has produced two phenomena. First, the current large-scale capital flows mainly flow to developed countries. , and the second is that investors are looking for suitable places around the world. Most of the beneficiaries are large multinational companies, resulting in a high concentration of wealth. Due to uneven benefits, there are two voices opposing economic globalization: developing countries and groups in developed countries whose interests have been harmed. This year's conflict between opponents of economic globalization and the police is the first time in my memory that the confrontation has been so sharp.

Tao Wenzhao (Deputy Director and Researcher of the Institute of American Studies, Chinese Academy of Social Sciences): Opposition to economic globalization is a global phenomenon just like economic globalization. The most fundamental reason is the current rules of the game for economic activities. Most of them are formulated by developed countries such as the United States, and there are many unreasonable and unfair aspects. As a result, the beneficiaries of globalization are mainly developed countries, especially large multinational companies.

Shen Jiru (director, researcher, and doctoral supervisor of the International Strategy Office of the Institute of World Economics and Politics, Chinese Academy of Social Sciences): Among those who held anti-economic globalization and anti-World Economic Forum demonstrations in Davos, Switzerland , there are Green Party members, there are members of trade union organizations, it’s very complicated. But it is certain that most of them are radicals from developed countries, because not many people from developing countries can fly to Switzerland to demonstrate. These radicals believe that globalization causes pollution, widens the gap between North and South, and marginalizes developing countries, which means they become increasingly poor. This reflects the interests of developing countries to a certain extent. But the behavior of these radicals is very extreme. They oppose globalization and cannot do it at all.

In fact, there are three reasons for the marginalization of developing countries. First, the international economic order is unreasonable and some developing countries cannot benefit from globalization. Second, they are self-isolated and do not participate in the globalization process and cannot obtain much-needed funds and technology. Third, some countries have been mired in civil strife and regional conflicts for a long time, and their domestic socio-economic structures are very backward. Therefore, even if they participate in globalization, it is difficult to provide their own products to the international market and cope with the fierce competition in the international market. Among those who oppose globalization, there are also those who have the tacit approval of Western countries. In the name of fighting for workers' employment rights, they oppose the entry of cheap products from developing countries into their own countries. Based on this, their own governments refuse to open their markets to developing countries. Instead, it only requires developing countries to open their markets to themselves and reap unilateral benefits.

Reference material: "Beijing Evening News"