The Relationship Between Economy and Globalization——LI ZIKANG

 The Relationship Between Economy and Globalization

The relationship between the economy and globalization is mutually reinforcing and deeply interconnected. It can be understood from several key perspectives:

1. Globalization expands the scope of economic activity

Globalization strengthens connections among countries, allowing goods, capital, and labor to move across borders more freely.

  • Trade liberalization reduces tariffs and lowers costs.
  • Multinational corporations establish global production networks.
  • Faster technological diffusion helps developing countries integrate into global markets.
As a result, globalization enlarges economic scale, increases efficiency, and accelerates economic growth.

2. Economic development further accelerates globalization

As countries grow economically and improve productivity, they naturally seek larger markets.

  • New technologies (e.g., internet, logistics systems) reduce distance and time costs.
  • Economically strong nations can join international organizations and sign FTAs more actively.
Thus, economic expansion drives globalization to deepen continuously.

3. The global economy becomes increasingly interdependent

Globalization creates unprecedented levels of economic interdependence:
  • Countries rely on each other through global supply chains
  • Financial markets are highly connected, meaning a crisis in one country can spread worldwide
This interdependence makes the global economy more efficient but also more vulnerable.

4. Globalization produces uneven economic impacts 

Lectures and readings emphasize that globalization does not benefit everyone equally.
  • Developed countries gain advantages in technology and finance.
  • Developing countries receive investment and jobs but face risks such as labor exploitation or industrial dependency.
  • Income inequality may grow within countries.
Thus, the relationship also involves issues of fairness and distribution.


The economy and globalization form a dynamic cycle: globalization expands markets and resource flows, fueling economic growth, while economic development in turn pushes globalization further—creating both deeper interdependence and new inequalities.


Comments

  1. Kim GaeunDecember 11, 2025 at 9:01 PM

    That's a very clear and well-organized breakdown of the complex relationship between the economy and globalization. I especially liked how you highlighted the dynamic cycle where economic development reinforces the globalization process itself .

    ReplyDelete

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