What is the relation between economics and globalization?—YU JIE(여결)

 1. Summary

Globalization has transformed the organization of economic activity by enabling production and investment to move beyond national boundaries. Transnational corporations reconfigure their operations across multiple countries to access cheaper resources, reduce costs, and expand markets. However, this globally integrated economy still operates within national regulatory systems, which shape and constrain how firms behave across borders.

The mobility of economic networks contrasts with the territorial fixedness of states, creating ongoing tensions between global production and national governance. As firms seek to exploit institutional differences across countries, states attempt to manage or limit such advantages while competing to attract investment. The balance of power is therefore contingent: in some contexts, corporations leverage their flexibility to gain favorable conditions, while in others, states use market access and international cooperation to strengthen their position.

Globalization also reshapes the position of other social actors. Labor, which is geographically immobile, traditionally struggles to bargain with transnational firms, yet global civil society networks and digital platforms provide new channels for collective pressure. Thus, economic globalization simultaneously enhances corporate power and generates countervailing forces, suggesting that the global economy is not defined by unilateral dominance but by dynamic negotiation among multiple actors.


2.Interesting Point 

Globalization allows economic activities to cross borders with ease, while national laws and institutions cannot move as quickly. This mismatch creates a wide range of grey areas: firms can shop around different countries for the most favorable conditions, while governments constantly switch between competition and regulation. As a result, no actor fully controls the situation, yet everyone tries to shape the rules. This instability has become a normal feature of the global era.

Moreover, power does not simply tilt toward one side; it takes the form of ongoing, shifting struggles. Capital has certainly gained more room to maneuver, but states and societies are also trying to mobilize new resources to respond. Especially in an age of rapid information and media circulation, groups that were once weak can sometimes exert considerable influence. Therefore, globalization is not a linear process, but a continuous negotiation in which all actors keep redefining their roles.


3. Questions and Discussions 

Globalization has enabled highly mobile capital, allowing firms to seek the most advantageous institutional environments across countries. States compete to attract investment, often making concessions in regulation, taxation, or social protection, which may weaken their own governance capacity. As a result, a complex and unstable power configuration emerges, in which the relationships among states, corporations, and society are continuously reshaped.

Globalization does not produce a one-sided dominance but pushes states, firms, and society to continuously adjust their strategies within shifting power relations. This results in a dynamic and uncertain global economic system in which the roles and influence of each actor are constantly evolving.

Comments

  1. Im JaeyeongDecember 9, 2025 at 12:42 AM

    Hello YU JIE,
    Your summary is excellent. You clearly captured Dicken's nuanced argument. I
    I want to expand on your Questions and Discussions regarding the limitations of non-state actors.
    1. Influence vs. Power: You are right. When faced with the geopolitical power of a major state, non-state actors generally lose. Their power is not about coercion (like military action or sanctions) but about legitimacy and reputational cost. They don't stop the military aggression, but they make the attacking state look illegitimate in the long run.
    2. The Accountability Gap: Your point about accountability in non-state networks is crucial. While we celebrate NGOs like Greenpeace, the same 'network structure' is used by global crime, cartels, and terrorist groups. These latter networks operate without democratic accountability, making them arguably the most dangerous beneficiaries of globalization's decentralized nature.
    Overall, your analysis confirms that economic globalization is defined by negotiation and strategic response. 
Thank you for sharing a great work!

    ReplyDelete

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