This is not a new topic but it is a controversial one. You may be wearing clothes made in China, shoes made in Vietnam. Back home, turn on the TV made in Japan, the water heater made in Germany. Even with a small cell phone, we can see the cooperation of dozens of countries on it. Economic globalization is influencing our life imperceptibly. This is also the general feature and major trend of the international community today.
Economic globalization is the global allocation and reorganization of factors of production, the large-scale flow of production, investment, finance, trade, and the integration of the economies of all countries and regions into a unified and interdependent economic system. It is an irreversible historical trend in the 21st century. It mainly expresses the close interconnectedness of the world economy and the inclusiveness of external interactions. The enormous momentum of world productivity unleashed by it is the fundamental driving force behind the great changes in the world. This historical process has the dual effect of leading to multi-polarization and single polarization for the development of the world pattern, but the leading role is to promote the multi-polarization of the world pattern.
The performance of economic globalization:
· Globalization of production activities. The main performance is that the traditional international division of labor is evolving into a worldwide division of labor.
· The world's multilateral trading system took shape. The main realization is that the growth rate of international trade is much higher than that of the world economy
· Finance is increasingly integrated.
· Investment activities throughout the world, global investment norms began to form a framework.
· The role of transnational corporations has been further strengthened
· Economic and trade culture, talent emerged worldwide.
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Effect of Global Business
For Developed Country
Since the international financial crisis in 2008, one of the pressures or difficulties that some western developed countries have to face is the continuous worsening of income inequality in their countries. In this case, economic globalization is considered by some to be the main culprit for the increase of income inequality in western developed countries.
For Development country
In terms of the benefits brought by economic globalization, developed countries benefit more than developing countries. Developed countries, with their advantages in capital, technology, management and strong economic strength, have been dominating the process of economic globalization, making resource allocation develop in a favorable direction and become the biggest beneficiary. Uneven factor flows have led to widening income gaps between developed and developing countries
Image result for the change of global business effect for all countries
Conclusion
This is a phenomenon that we cannot avoid, it is also a trend of The Times.