Blog assignment 4 - Economic Globalization / Jeon, Hyune Joon

Economic Globalization

1. Summary

Economic globalization means the free movement of goods, capital, services, technology and information, along with political globalization and cultural globalization. As the border mobility of goods, services, technology and capital is strengthened, the economic integration and interdependence of national, regional and local economies is increasing globally. Globalization is a series of broad processes related to economic, political, and cultural exchanges, but modern globalization is driven by the rapidity of information on all production, marketization and technology development.

Economic globalization consists mainly of globalization of production, finance, markets, technology, organizational systems, institutions, enterprises and labor. Economic globalization has expanded since the advent of transnational trade, but has steadily increased as communications and technology have developed within the general agreement on tariff trade and the WTO system. Lower trade barriers and open current account and capital accounts. The economic boom leads to the support of developed countries to increase integration with most of the world's nations, reduce business costs, lower trade barriers and, in many cases, support foreign migration through foreign direct investment.

Globalization will affect the culture of each country by dramatically increasing income and economic growth in developing countries, lowering consumer prices in developed countries and changing the balance of power between developing and developed countries. And as production has changed, many jobs have crossed borders, and some workers in developed countries need to change jobs.

2. Interesting points

International commodity markets, labor markets and capital markets constitute the economy and define economic globalization.
From 4000 BC people were exchanging livestock, tools and other things. In the Sumerian civilization of Mesopotamia, the token system is one of the earliest commodity forms of money. The labor market consists of workers, employers, wages, income, supply and demand. The labor market is as old as the commodity market. The first labor market allowed farmers to grow crops and then raise livestock to sell them in the domestic market. Capital markets have emerged in industries that require resources that transcend the resources of individual farmers.

Globalization connects everyone in the world across geographical boundaries. This progress of economic globalization was confounded by the First World War. Most of the world economy has introduced trade barriers to establish protectionist economic policies and delay trade growth to recession. This slowed global trade and even made other countries with immigrant hats. Globalization has not been fully resumed until the 1970s when the government began to emphasize trade profits. The development of technology today has led to the rapid expansion of world trade. Three factors, such as the development of science and technology, market-oriented economic reforms, and the contribution of multinational corporations, have accelerated economic globalization.
In 1956, the invention of container transportation was a major part of the reduction of transportation costs as the size of the vessel increased.

Economic globalization is one of the three main elements of globalization that is common in academic literature, and the other two are general terms of globalization in addition to political globalization and cultural globalization.
The GATT / WTO system encouraged participating countries to lower tariff and non-tariff trade barriers. The government changed the economy from central planning to market. These internal reforms have allowed companies to adapt more quickly and take advantage of technology change opportunities. Multinational companies reorganized production to take advantage of this opportunity.
Labor intensive production moved to lower labor costs, and as technology levels increased, other functions followed. The network has increased the level of wealth. The London Stock Exchange has instituted new deregulation regulations that enable global interconnection of markets, with systems of global consumption and geographical mobility being highly dynamic and with strong ramifications and expecting significant increases in market activity. This case became known as Big Bang finance theory.

3. Discussion point

Economic globalization has had many positive effects on the world but it was negative. Especially in developing countries, major producers in developing countries have unfair trade and margins very low.

Fair trade is presented as an alternative. Fair trade is a social movement based on a market model of international trade to facilitate the payment of fair prices as well as the social and environmental criteria of various localities in relation to the production of various goods. This movement focuses on exports to developing countries, especially in developing countries, mainly handicrafts, coffee, cacao, nose, wine and fruit.

The purpose of fair trade is to work with producers and workers who have been carefully removed from competition to help them escape from vulnerable situations and ensure their stability and economic autocracy. It also aims to give them the ability to become self-reliant by allowing them to own shares in their own organizations and to have a more active and broader role in the international arena in order to gain more fairness in international trade.

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