关于经济全球化的看法(原创论文)Economic Globalization

Economic Globalization Is Not Always Beneficial

Niko 20120101123

Economic globalization is the increasing interdependence among the countries of the global economy through the expansion of transnational corporations, service business, scale of capital flow and widely applied technology (IMF 12). It is one of the most significant features of the global economy, including production globalization, capital globalization and trade globalization. Economic globalization has been occurred for the last several hundred years and is growing rapidly. Although its development makes better resource allocation in the world, economic globalization is essentially a spontaneous process of market mechanics. It is benefit-oriented without macro-control and will not self-regulate in ways to ensure fair distribution of benefits, causing instability in the world economy (Xu 98). Because of the instability of economy and other reasons, economic globalization is not always beneficial for all nations.

Economic globalization is developing without a negotiation mechanism, causing the instability of the world economy, and as the global economic chain becomes increasingly closer, the possibility of causing an economic crisis is more likely than before. In 1987, the United States changed its monetary policy for curbing inflation before Europe. The action caused the dollar-backed Hong Kong stock exchange to collapse, and the crash spread to Europe and hit the United States and other markets (Roll 32). On October 19th, 1987, when the Dow Jones Industrial Average lost 22.6 % (Browning 76), similar stock markets around the world dropped an enormous percentage. In the new and global world of closely interdependent economies, the crisis affected almost every part of the world, receiving extensive coverage in the international media (Chanda 53). It caused great damage to the worldwide economy. Currently, in the process of economic globalization, most nations are increasingly globally interconnected. When energy prices are soaring and financial problems are uncontrollable, the crisis will spread widely like a chain reaction. As the global

economic chain is increasingly tightened, the conduction speed of the influence of the world economic crisis is much more widespread than ever before (Reed 78). Thus, the instability of the world economy following economic globalization reveals that it sometimes impacts national economies badly (Sterling 34).

Economic globalization aggravated the further imbalance of world economic development, and the gap between developing countries and developed countries has been widened. In developing countries, domestic industries are facing great challenges because overseas enterprises are in a period of rapid growth, graining the market share and causing some countries much impecunious (Smith 83). However, countries with stronger competitiveness like the United States, the real GDP yearly had grown from 2001 to 2007, especially the export trade (Bernstein 109). For trade globalization, economic globalization will bring the import of foreign products into domestic economies. However, the excess amount of imported products can diminish the competitiveness of the domestic products because imported products generally are cheaper and have higher quality (Cotton 91). Also, economic globalization must cause resource sharing and create linkages to economic systems, which can also cause unfairness between developed countries and developing countries. Under the competitive mechanism, the wealth of the less competitive nations will be allocated by the much more competitive nations, impacting economic inequality within societies (Zhang 88).

Following the trend of globalization, many organizations were established to accommodate the new economic environment. As the contacts among members in the organizations have been strengthened, the independence of national economic sovereignty is facing increasingly serious challenges (Li 68). Each member in the European Union should transfer its economic sovereignty, using the same currency and weakening the tariff protection to achieve the goal of regional economic integration, which caused the declining of economic