Role of Economic Globalization

Economic globalization has a dual role:

(1) Economic globalization is conducive to the realization of the optimal allocation of resources on a global scale, so as to make the most effective use of resources.

(2) Economic globalization accelerates the process of technology transfer and industrial restructuring.

(3) Economic globalization inevitably leads to the strengthening of international economic regulation and control, and makes international economic organizations and rules continuously improve, and plays a contributing role in the development of the world economy.

(4) Economic globalization is conducive to easing some international conflicts.

Extended information:

Forming factors:

I, the fundamental factor is the result of the development of productive forces.

Two, the development of high technology, especially the development of information technology, has laid the material and technological foundation for economic globalization.

Three, the development of market economy in more and more countries is the institutional guarantee for economic globalization.

Fourth, the liberalization of international trade and investment is the direct motive of economic globalization.

Fifth, the internationalization of business operations, especially the rapid expansion of transnational corporations on a global scale, has played a driving role.

Some people analyze it from the perspective of the development of the movement of productive forces and believe that economic globalization is a historical process. On the one hand, in the world, the economies of countries and regions are intertwined, interacting and integrating with each other to form a unified whole, i.e., a "global unified market"; on the other hand, global rules regulating economic behavior have been established in the world.

And this is the basis for the establishment of the global mechanism of economic operation. In this process, the market economy reigns supreme, and the factors of production flow freely and optimize their allocation on a global scale. Therefore, economic globalization refers to the free flow of factors of production across national borders and the integration of countries and regions into the whole historical process.

Baidu Encyclopedia - Economic Globalization