Economic globalization refers to the increasing interconnectedness of the world's economies through the expansion of trade, investment, and capital flows across national borders. Here are some subtopics related to economic globalization:
- Trade liberalization: The reduction of trade barriers such as tariffs, quotas, and regulations, to promote international trade and investment.
- Foreign direct investment (FDI): Investment by firms in foreign countries to establish or expand production facilities or acquire existing firms.
- Global supply chains: The complex networks of firms, suppliers, and customers that span multiple countries and regions, and are driven by the outsourcing of production and services.
- Economic integration: The process by which countries become more economically interconnected through regional economic agreements such as the European Union, NAFTA, and ASEAN.
- Global finance: The integration of financial markets across borders, which enables the free flow of capital and the expansion of financial services across national boundaries.
- Multinational corporations (MNCs): Large firms that operate in multiple countries and often have significant economic and political power.
- Labor mobility: The movement of workers across borders in search of better employment opportunities, often driven by economic disparities and political conflicts.
- Economic inequality: The uneven distribution of economic benefits and costs across countries and regions, which is often exacerbated by economic globalization.