What is the relation between economy and globalization?-QIU WEIQI

Summary

Globalization means that countries in the world are becoming more connected. People, products, money, and information move more quickly and easily from one place to another. When we talk about economic globalization, we mainly mean that business and trade are crossing national borders more and more.
In the text, the writer says that the key actors in economic globalization are transnational corporations (TNCs). A TNC is a big company that has important activities in more than one country. For example, it might have its head office in one country, factories in two or three other countries, and shops in many different markets. These companies link different national economies together.
The relation between economy and globalization is very strong because these companies decide where to produce, where to invest, and where to sell. Their choices can change how many jobs there are in a country, what kind of products are made, and how much a country earns from trade. When TNCs move factories, open new branches, or close old ones, they directly shape the world economy.
At the same time, TNCs do not act in a totally free space. They are influenced by governments, local workers, and local markets. So economic globalization is not just “companies taking over the world”; it is a constant interaction between big companies and different countries’ economic systems. In short, globalization is the process, and the economy is both the engine and the result of this process.

 Interesting Discoveries

From the text, we can find several interesting points about how economy and globalization are connected:
  • “Global” companies are not fully global
The text explains that even very large TNCs still keep a lot of their main activities in their home country. Their top managers, research centers, and key decisions often stay there. So they are not completely “placeless”. This shows that the national economy is still very important inside a global system.
  • Unequal geography of globalization
TNCs and their investments are not spread evenly around the world. Many leading companies come from rich countries, and a lot of foreign investment goes to certain regions, like Western Europe, North America, and East Asia. Some developing countries get a lot of factories and jobs, while others get almost nothing. This means economic globalization can increase differences between places.
  •  Companies are “rooted” in places
Even when a company works in many countries, it is still connected to the local culture, laws, and business style of each place. For example, how managers treat workers, how long the workday is, and how much workers can join unions can be very different from country to country. So globalization does not create one single type of economy; it creates a network of different local economies that are linked together.
  •  Webs of production networks
The text also talks about production networks. One product, like a smartphone, might be designed in one country, have parts made in several other countries, be assembled in another place, and finally be sold all over the world. This “web” connects many local economies. It makes countries depend on each other, but also makes the system more complex and sometimes more fragile.
  • Power between companies and states
A common story is that TNCs are always stronger than governments. The text says this is too simple. Big firms do have a lot of power, because they can move their money and jobs across borders. But states still have power: they can make laws, set taxes, control access to their markets, and sometimes act together (for example, in regional groups). So economic globalization is also about negotiation and conflict between companies and states.

Question / Discussion Angle

Who gains more from economic globalization?

Do TNCs and rich countries gain more benefits than poor countries and normal workers? On one hand, globalization can bring new jobs, technology, and markets. On the other hand, some people face job loss, low wages, or bad working conditions. This opens a discussion about fairness in the global economy.

Jobs, wages, and daily life

When a company closes a factory in one country and opens a new one in another, some workers lose jobs while others get new ones. Is this a good trade-off? Should there be stronger rules to protect workers in the global economy?

 Future of differences

Will globalization make all countries more similar, or will they keep their own economic systems and cultures? 

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