Economic globalization is one of the three main areas of globalization in literature, and the second is political globalization and cultural globalization, as well as the general era of globalization. Economic globalization means the free movement of goods, capital, services, technology and information. Growing economic integration and the interconnection of national, regional and local economies around the world by accelerating the cross-border movement of goods, services, technologies and capital
While globalization represents a wide range of processes connected with numerous networks of economic, political and cultural exchange, modern economic globalization is stimulated by the rapidly growing importance of information in all types of productive activity and marketing, as well as in the development of science and technology.
Economic globalization primarily includes the globalization of production, finance, markets, technology, organizational regimes, institutions, corporations and labor.
Despite the fact that since the emergence of transnational trade, economic globalization has been expanding, it is growing with increasing growth rates due to increased communication and technological achievements under the General Agreement on Tariffs and Trade and the World Trade Organization, which has resulted in the countries gradually reducing trade barriers and open your current account and capital account.
This latest explosion is mainly driven by developed economies, which are largely integrated with most of the world through the demarcation of the border, reducing barriers to foreign direct investment and business, reducing barriers to trade, government support.
Globalization in developing countries sharply increases profits and economic growth in developed countries, reduces consumer prices, changes the energy balance between developing and developed countries and affects the culture of each affected country. And the changing role of commodity production has led to numerous crossroads and demanded employment in some developed countries
Globalization is generally characterized as a product of scientific and technological revolution, the development of information technologies and computer networks, telecommunications and transport systems, as well as the interaction of national markets, unprecedented in the intensity of capital flows, goods, services and labor around the world.
It is generally recognized that globalization is the result of the unprecedentedly increased technical and economic power of mankind, which conquers space and time, brings peoples, countries and continents closer.
However, there is a completely opposite position, that is the treatment of globalization as almost an exceptional evil for human civilization, as evidenced by the growing anti-globalization movement.
Most scientists admit that Globalization is a controversial phenomenon. On the one hand, there is a fusion of economic processes on a global scale. If at the stage of "ordinary" internationalization of production the relations between independently developing national economies prevail through the world market, then at the stage of globalization a new transnational systemic level of the economy with its own laws and regulation mechanism is formed. There is a formation of unified world financial and information systems, the establishment of centers of regulation of the world economy.
On the other hand, there is an opposite tendency: with the preservation of national borders and interests, national identity in the world economy, stable isolated structures.
We should note that economic regionalization is one of the components of this process that unfolds internationally within large states. Globalization is expressed in the establishment of uniform rules for the peoples of the globe. Meanwhile, not everyone wants and can live by these rules.
Thus, the incradicable desire for isolation, conflicts on national and religious grounds, more or less energetic attempts of peoples to defend their culture, identity, way of life. All this leads to the formation and strengthening of isolated structures, supports diversity in the world and strengthens the alternatives in the development of mankind. The preservation of the objective foundations of the alternative nature of social development means that the latter can not be regarded as unidirectional.
Prospects and possible options for this development are very diverse, and some of them an unreliable. All existing models of the formation of a post-industrial society that are merely more or less probable scenarios. Consequently, globalization as such is not a pre-set single-vector process, it is itself a variant. Different models are possible here.
It is commonly recognized that in the concept of globalization, there are several levels: global, state, sectoral and the level of an individual company. Globalization consists of many deep transformations taking place in various spheres of human activity. It is no accident that the integral and almost the main part of the globalization process has become economic reform, transition to a market economy so as to draw on the experience of developed countries to ensure sustainable economic growth and improve the living standards of the population.
As the process of globalization is concerned, it should be emphasized that today the world has turned into a monopolar world. Practically in all spheres of life: economic, political, military — the US dominates.
The underestimation of the alternative in question and the identification of globalization as such with its current "west-centric" model are also characteristic of critics who criticize the latter. Hence the purely pessimistic conclusion that Westernization of the planet leads to the fact that there are no "growth points" in the world from which something could grow that is capable of a new form of evolution different from evolution based on Westernism.
With globalization, both the growing unity of human civilization and the widening gap between wealth and poverty are linked, the growing horizons of technological progress and the devastating financial crises. As a result, the image of not only the modern economy changes, but radical changes take place in the distribution of political forces in the world, new social structures of individual countries and continents are formed, their ethno-cultural composition is changing, the former disappear and new traditions are emerging, new cultural norms are being formed, as well as norms of social behavior.
Globalization has a great impact on the economy of all countries, is multidimensional. It affects the production of goods and services, the use of labor, investment in "physical" and human capital, technology and their distribution from one country to another. All this ultimately affects the efficiency of production, productivity and competitiveness.
The process of globalization, which has become the most active in the last two decades, contains a lot of ambiguities and contradictions, becomes the subject of heated discussions in academic and business circles. Interpretation of globalization varies widely among specialists. Different reaction to the process of globalization, is observed at present and people are very much concerned about it since as we realize it is a serious threat to the world economic system, while others can contribute to the further progress in the world economy. For example, the famous economist Joseph Stiglitz wrote several books that contain a sharp criticism of globalization.
Stiglitz argues on numerous facts and examples that it destroys industry, contributes to the growth of unemployment, poverty, inhibits scientific and technological progress and exacerbates the ecological catastrophe on the planet. Some authors, such as Yu. Kuzovkov, point out that globalization contributes to a fall in the birth rate. Others argue (Platonov O., Reisegger G) that globalization is used by the US as a tool to weaken or destroy its geopolitical opponents. Still others point out (Harvey D.) that globalization contributes to the growth of the speculative economy, the monopolization of production and marketing of goods and the redistribution of wealth in favor of a small group of people
It is necessary to understand the causes and results of globalization not only in order to understand the essence of the processes that are taking place, but also in order to have a sufficiently reliable basis for working out the right policy decisions in relation to globalization.
The globalization of the world economy creates real problems for many countries, intensifying some of the negative trends that characterize the economy as a whole. However, globalization is an objective, irreversible process that develops in accordance with certain regularities. Fighting globalization is like trying to stop progress.
Therefore, in modern conditions, especially relevant is the implementation of an adequate social policy, the implementation of financial control and regulation by the state, as well as the improvement of international coordination of economic policies in order to mitigate the negative consequences of globalization and use of the opportunities it presents for acceleration of economic development. Knowledge of globalization processes is a necessary prerequisite for this.
In principle, the whole history can be represented as the process of rapprochement of mankind. That is why there are disputes when exactly globalization began. At least since the time of the Great Discoveries, the process of rapprochement of the world has become evident and everything has accelerated. Nevertheless, at that time, what is called globalization today is still in the initial stages. The main changes are undoubtedly ahead.