What is the relation between economy and globalization? - Ju Sukyung

 1. Summary

The modern economy cannot be explained without the concept of globalization. Rather than simply a cause-and-effect relationship, the two have a relationship that promotes each other's development and constantly reconstructs each other's structure. Globalization starts from economic causes. Since the 1980s, various profit-seeking activities of multinational corporations for a wider market, a cheaper and more efficient production environment, and innovative technologies across borders have opened the door to globalization. Here, a complex and huge production network called the global value chain was created. It maximized efficiency worldwide by distributing and combining all stages of production in each of the most efficient countries. As a result, each country's economy has become inseparable, and in the event of an economic crisis for a country, structural interdependence that could spread around the world has intensified. However, this relationship cannot be seen as a one-sided control of companies. It can still be seen that the state is the core of revising and adjusting the rules of globalization. The government tries to induce corporate behavior by attracting or limiting foreign investment through institutions such as labor regulation and environmental standards. In other words, companies bait and pressure the state, but the state maintains its bargaining power by providing fundamental resources such as territorial or advanced labor. Ultimately, globalization played the strongest role in economic growth, but its limitations are sometimes revealed whenever an economic structure shock, such as a financial crisis, occurs. Recently, there has been a movement to rebuild supply chains based on security or trust rather than efficiency. This shows that the dynamics and structural changes of the global economy can determine the speed and appearance of globalization.

 2. What I interested

As I studied about this part, I found it interesting that globalization, as I summarized earlier, has brought economic benefits but also new weaknesses. First, I thought that the fact that economic activity was carried out at a very fast and unprecedented rate as technological advances made the physical distance between countries meaningless, but the labor force was still subject to various geographical restrictions such as visas and language shows that capital mobility and asymmetry. Second, I could see how weak a single supply chain strategy that is efficient and prioritized when a pandemic like COVID-19 occurs, that is, when an economic event occurs. I could see the paradoxical fact that globalization has provided great economic benefits but does not have the resilience of the system together. Third, it was also interesting that data and financial capital, unlike physical goods, almost immediately cross borders. I thought this created a new problem that the state could lose things like tax regulations and tax authority in the digital economy, even though it could control the trade of traditional goods.

 3. Discussion Question

While efficiency and cost reduction were the main causes of globalization in the past, national security and reliability are now the new driving force behind the restructuring of supply chains. This shows that the economic foundation of globalization is shaking. In addition, great powers are strengthening their economic sovereignty by reorganizing supply chains under the pretext of security, but in this process, there is a risk that the economic gap between emerging countries that are excluded from the global value chain or are forced to set new standards will widen. So we can discuss what differentiated strategies should be taken for developing countries that relied heavily on existing GVC to avoid economic isolation and achieve sustainable growth amid the restructuring of supply chains centered on developed countries.


I wrote this essay myself, but I used ai to write words or sentence structures that I didn't know.

Comments

Post a Comment

Popular posts from this blog

What is globalization--Kim younggyun

 1) Summarize From what I understand, globalization is not merely an economic trend. It is a broad concept in which the world becomes increasingly interconnected on cultural, social, political, and even individual levels. Because globalization is such an all-encompassing idea, it is only natural that debates continue over its definition. This is exactly what made studying the concept of globalization difficult for me. That is why, like Robertson and White, I tried to understand globalization mainly through the two dimensions of increasing connectivity and growing consciousness. I find their approach persuasive. When internet, transportation, and trade expand, the connections between countries grow stronger, and naturally, people begin to perceive the world as a “single place.” 2) Interesting point What I found particularly interesting while studying globalization is that it does not simply lead to “one-sided homogenization.” I used to think of globalization only as the expansion of...
Read more

What is globalization? | Yun Shinji

1.   Summary It is difficult to define the concept of ‘globalization’ with a single meaning, as the term is used in various contexts with different implications. Sociologist Roland Robertson describes globalization as “the compression of the world and the intensification of consciousness of the world as a whole". Robertson and White further elaborate it as two main trends “an increase in global interconnectedness” and "an increase in global consciousness". In this way, globalization is a complex phenomenon in which the world becomes closely connected across borders, and it is used in multiple ways in different contexts. Globalization can be broadly divided into three dimensions cultural, political, and economic. Among them, cultural globalization is the phenomenon we experience most directly in our daily lives. For example, a cultural content that becomes popular can spread worldwide and be shared globally. However, this phenomenon also raises concerns about cultural hom...
Read more

What is the relation between politics and globalization? - Yun Shinji

1) Summary The author views “political globalization” as a multidimensional, accelerated, and interconnected form of organization that transcends national borders across space and time. Rather than seeing globalization as a simple reality, the author understands it as a “relational dynamic” that produces a complex and constantly shifting political landscape. According to the author, political globalization is driven by three key processes. First is global geopolitics. This involves interactions mainly between states, including traditional balances of power, international security, territorial disputes, and other state-centered dynamics. These geopolitical interactions continue to shape how states position themselves in an increasingly interdependent world. Second is the global normative culture, which refers to political values and norms—such as human rights and democracy—that are shared or diffused across the world. These norms influence how states govern internally and how they are e...
Read more