Positive and negative effects of economic globalization?

Economic globalization is the product of the development of productive forces, and it also promotes the development of productive forces. It promotes the flow of production factors in the world, the perfection of international division of labor and the rapid development of international trade, thus promoting the improvement of resource cultivation efficiency in the world and the development of productivity in various countries, and providing a broader development space for the economies of various countries.

Negative effects:

First, economic globalization is dominated by developed capitalist countries. Developed countries have economic and technological advantages, master modern information technology that promotes the trend of economic globalization, dominate the development of the world market, and influence the "rules of the game" of the international economy. On the one hand, the wealth of developed countries is accumulating, on the other hand, the poverty of developing countries is increasing, which makes the world economic development more unbalanced and polarization more serious. Second, economic globalization links the economies of all countries in the world, which not only promotes economic cooperation among countries, but also makes the economic fluctuation of one country affect other countries, even the whole world, which intensifies the instability of the global economy and poses a great threat to the economic security of developing countries in particular.

: the reasons for economic globalization

The main factor leading to that rapid development of economic globalization are:

First, the progress of science and technology and the development of productive forces. The progress of science and technology and the development of productive forces have provided a solid foundation for economic globalization, especially the information technology revolution since the 1970s, which not only accelerated the speed of information dissemination, but also greatly reduced the cost of information dissemination, broke the restrictions of various regions and even countries, linked the whole world together as never before, and promoted the rapid development of economic globalization.

Secondly, the development of multinational corporations. Multinational corporations provide a suitable form of enterprise organization for economic globalization. Multinational companies make use of local advantages to organize production on a global scale, which greatly promotes the global flow and international division of labor of various production factors, thus greatly promoting the process of economic globalization.

Finally, the changes in the economic systems of various countries. Since 1990s, the traditional planned economy countries have abandoned the planned economy system and turned to the market economy. In order to get rid of economic stagflation, developed capitalist countries have weakened the state's control over the economy and strengthened the spontaneous adjustment of the market mechanism. Internationally, with the establishment of the World Trade Organization, its members have greatly relaxed their control over their own or local markets, and the process of trade liberalization and investment liberalization has been accelerating. All these provide suitable material environment and policy conditions for the flow of international capital, the expansion of international trade and international mass production, and promote the development of economic globalization.

Baidu Encyclopedia-Economic Globalization