What is the relation between economy and globalization?-Qiu Pengyu

 1. Summary

The relationship between economy and globalization is dynamic and mutually influential, rather than a simplistic narrative of "corporate power overpowering state sovereignty." Some argue that multinational corporations are "placeless" giants that freely transcend borders and undermine state authority. In reality, the core activities of the vast majority of multinational corporations remain deeply embedded in their home countries, with their strategies and behaviors bearing the profound imprint of their home nations' institutions and cultures. At the same time, states are not purely passive actors; they retain significant leverage to engage with multinational corporations through regulations, market access controls, and regional cooperation. Globalization has not led to the convergence of business models. On the contrary, companies from different national backgrounds continue to maintain their uniqueness, while global production networks exhibit more "regionalization" than "globalization." Therefore, the process of globalization is fundamentally a political and economic process fraught with tension, shaped by the interplay of multiple forces, including states, multinational corporations, labor, and civil society.

2. Interesting points

First, whether they are Japanese, American, or German companies, even with global operations, their core operational strategies retain the distinct characteristics of their home countries. Second, multinational corporations possess the ability to leverage geographical differences to their advantage, while states can also constrain them by controlling territorial access and setting rules. This relationship is not fixed but depends on the specifics of the negotiations.

3. Discussion and Conclusion

The boundaries of state sovereignty have always been a topic worthy of deep reflection. How do we measure the gains and losses of a state in its dealings with multinational corporations? When a state implements measures to attract investment, in what sense is its sovereignty eroded? On the other hand, who has the qualification and capacity to formulate and manage the rules of the global economy? International organizations like the WTO derive their power from member states, and as such, their actions are constrained and manipulated by individual powerful members. How can a sufficiently fair, effective, and accountable global governance framework be established? The answers to these questions remain distant, yet they are precisely the key to the future trajectory of human civilization.

Note: I discovered that my four blog posts were in the wrong order. I have now corrected them and added the missing content.

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