economic globalization

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Hello everyone. We are about to learn the section about economic globalization, and we all know this is a huge topic, which covers a widely-separated context. So I was asked to share something I’ve been working on recently.Well, let’s begin with the definition of Economic Globalization. In short terms, it is a trend. It’s this trend of national, regional, and local economies merging together. There is a movement between more than one country, which involves factors like goods, services, technologies, and capital.This kind of integration is expected to impact our life in different perspectives. So now, let’s have a look at the effects Economic Globalization brings us.I got this pic from Wikipedia, and we can see there are about 8 different perspectives. I want to give you more information about several one of them.The first and second one is economic growth and poverty reduction, and multinational corporations, and we all get that.As to the third one, is capital flight. This occurs when assets or capital suddenly flow out of a country, often caused by some kind of unfavorable economic conditions, and followed by the results of exchange rate dropping off, or maybe sudden economic stop as well.The next one is inequality. This happens both domestically and globally. Inside a country, the income inequality increased, as we all can see from the tremendous gap between the rich and poor people in China. While globally the inequality has lessened because the developing countries experienced a much more rapid economic growth than the developed countries.The last one I want to explain is tax haven. This term refers to a state, or country, or some kind fo territory, which has a very low taxation, or even no tax at all. Places like Bermuda Islands, and Luxemburg are tax haven.I think the most direct influence of Economic Globalization is the appearance of multinational corporations. With a subsidiary in one country and the general headquarter in another is how multinational corporation works. And this triggers the appearance of protectionism.To not be so serious, protectionism is just how a government protects the companies of its own nation. Normally, the method includes setting the tariff a little bit higher for the foreign companies, and offering a slightly more favorable tax condition for domestic companies. Actually, we can hardly call this kind of behavior protectionism.But what European Union did to Google was really out of the line. I read about this case in February’s English Digest, and in an article called trust-busting in the internet age: should digital monopolies be broken up? Before the end of last year, in a resolution about to go into a vote, the European Parliament called for unbundling Google’s search engines from other commercial services, to ensure a fair playing field for European companies and consumers. And by the time of april 15th, not only did EU chopped Google into pieces, but they decided Google should compensate more than 6.6 billion USD.It’s like there is a Googlephobia breaking out all over Europe.In addition to that, the European Parliament requires Google to give more prominence to its rivals’shopping and map services. This means that Google shall list other companies’ searching results before the results of its own.And how can that be fair?EU is worrying about its own baby companies, and they have every reason to do so. According to the commission of anti-trust, Google has 68% of market of web searches in America and more than 90% in many European countries, which include the UK, France, Spain and Germany as well.But if we look for a second opinion, I’d say that some of the features that hurt Google’s competitors benefit the consumers. Google gives people flight details, dictionary definitions, or a map right away, and this saves time. Since I have like no sense of direction, Google map really helped me a lot when I was in Europe.Conflicts like this case are all over the world, but still there are other options to protect and encourage national companies. Take China for instance, there’s Apple taking over the market with Iphone, but companies like OPPO, and HUAWEI can still survive. The government uses a different way to achieve a similar goal. Our first lady 彭丽媛uses HAUWEI herself, and that would be a really good advertisement.What European Union did was about protecting companies, not consumers. Instead of attacking successful American companies, Europe’s leaders should ask themselves why their continent has not produced a Google or a Facebook.。