1. It promotes the internationalization of national economies and the interdependence of national economies

Economic globalization is the product of this process. The economies of various countries have broken through national boundaries, become interdependent and interpenetrating, are closely connected in all economic sectors and various economic links, implement cooperation and adjustment to varying degrees, and are developing in the direction of capital internationalization, trade internationalization, and financial internationalization.

Transnational corporations are the main embodiment of economic globalization. Economic globalization promotes the rational flow of production factors between countries and promotes the development of the world economy. Regional economic grouping is an integral part of world economic globalization.

2. The instability of the global economy will become a norm

In the process of economic globalization, the interdependence of the economies of various countries has increased unprecedentedly. Many countries' foreign trade dependence has exceeded 30%, and some countries have reached 50-60%. In this environment, the international contagion of economic fluctuations and crises has become regular and inevitable.

The internal imbalances of any country will be reflected as external imbalances, which will quickly affect countries with close trade and investment relations. In the end, it is very likely that all countries will be led into imbalances and crises to varying degrees. situation.

The exchange rate crisis in Thailand in 1997 quickly spread to the entire Southeast Asia region, South Korea and Japan, resulting in a serious regional financial crisis. Subsequently, it spread to Russia and Latin America (including the United States for a time), forming a de facto global financial turmoil, which is the latest example of the contagion effect of the crisis.

3. The independence of the economic sovereignty of each country is facing increasingly severe tests

The development process of the EU economy shows that with the gradual improvement of the degree of integration, the economic sovereignty of each member state Independence continues to decline. From the early customs union, unified agricultural product prices, and joint exchange rate floating, to unified financial policies after the emergence of the single currency euro (the euro interest rate area was launched in January 1999).

This all shows that the fiscal and monetary sovereignty of each member state has gradually been transferred to the supranational EU coordination mechanism. This kind of transfer of economic sovereignty has cost many member states a lot of money, and has even endangered the survival of the EU economy many times.

4. The global gap between rich and poor is further widening

Economic globalization is essentially a global marketization process. In this process, competition creates efficiency, and at the same time, wealth is increasingly concentrated in a few countries or interest groups, leading to a widening gap between the rich and the poor.

According to World Bank statistics, in 1983, the per capita GDP of low-income developing countries was 2.4% of that of high-income developed countries, that is, the latter was 43 times that of the former. By 1994, this proportion had dropped to 1.6%, that is, the latter was 62 times the former.

Although almost all countries participating in the globalization process have benefited from it to varying degrees, this does not mean that the benefits are shared equally. Because in fact, as the main owners of capital and advanced technology, developed countries have always been at the center of globalization. This relative advantage enables them to have the initiative in setting prices and obtain more benefits in exchanges with developing countries.

5. Development and opportunities coexist for developing countries

In the process of economic globalization, developed countries occupy a dominant position, while developing countries face both opportunities and challenges. situation. For developed countries, economic globalization has brought them far more benefits than developing countries. First of all, the internationally accepted system is dominated by developed countries. International rules reflect the characteristics of their domestic rules to a large extent, and there is no serious conflict with foreign rules.

Secondly, because they dominate the international system, developed countries can make other countries bear more uncertainties and costs from internal and external system conflicts, thereby passing on costs and avoiding risks. Furthermore, developed countries have greatly leveraged their advantages and protected their disadvantages through international systems and rules.

Baidu Encyclopedia-Economic Globalization