What is the relation between economy and globalization?

     Lyu jinshuo 2022090173

 The relationship between economy and processes of integration across countries appears in the actions of large companies operating across borders. Integration across countries is not a concept that exists separately from actual practice. It is produced by companies that make decisions about where to invest resources, where to locate production, and how to connect different parts of the world.


The reading suggests that large companies operating across borders function as the main actors in economic integration. These companies are not simply large organizations that operate in other countries. They coordinate networks of production, research, and distribution that extend across multiple countries. When a company decides to establish production facilities in another country, acquire a local company, or form a strategic relationship with other companies, it changes economic relationships between countries. These decisions affect where employment appears, where technology spreads, and how products move across borders. This means integration across countries develops from economic motives such as expanding into new markets or reducing costs. However, once these networks exist, they also change how the global economy operates.


At the same time, economic integration is not as simple or uniform as descriptions often suggest. One part of the reading that was surprising showed how few companies are actually operating globally in the way that is commonly imagined. Many companies still maintain most of their activities in their home country. Even so, their production networks extend across regions like East Asia, Europe, or North America. This creates regional systems that connect different economies in substantial ways. In this sense, integration is uneven. Some countries receive large amounts of investment from other countries, while other countries barely participate in these networks.


Another important point is that integration across countries is not just caused by large companies operating across borders. It also shapes these companies. As companies expand operations to other countries, they must respond to different political and cultural conditions. They negotiate with governments, interact with local labor forces, and respond to regulations. The reading shows that even powerful companies cannot always follow their preferred approach. States still have power in negotiations, particularly when access to their market provides value. This means integration across countries is a continuous interaction between economic forces such as investment from companies and political structures such as regulations from states.


The reading shows that economy and globalization relate as a process with two different aspects that affect each other. Factors in the economy provide reasons for companies to develop work across different areas, and this development changes the economy in the world by producing systems of making things and exchanging things. Globalization is not one process that occurs in a particular form but is the outcome of multiple decisions in the economy that corporations make and that governments make and that workers make in various places.

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