The Underlying Contradictions and Basic Trends of Current Economic Globalization

Abstract

This round of globalization is characterized by the multinational companies in developed countries to maximize capital profits for the global allocation of production factors and to optimize the allocation of production factors in developing countries. The result is a win-win situation. The integration of China's economic reform and opening-up into globalization in 1978 is of epoch-making significance and has contributed to global economic growth and its economic growth. Globalization went into reverse after the 2008 financial crisis. The highly abstract research paradigm of mainstream Western economics, which is targeted to rational economic people and the optimal allocation of resources, is challenging to explain the increasingly complex globalization phenomenon effectively. Therefore, it is necessary to innovate research methods, focus on the globalization behavior of sovereign countries, and deeply analyze the internal contradictions of post-war international governance structure and international monetary system led by the United States. The deep reasons for the spread of populism and anti-globalization are the unbalanced global and regional growth, the decline of the real economy in developed countries, the development of financial bubbles, and the widening income gap between different classes caused by globalization. China-US relations are the most critical factor in the future process of globalization. At present, the cooperation and competition between the two countries are becoming increasingly complex. However, the space of the "positive-sum game" between the two countries is larger than the space of the "zero-sum game". This study aims to explore the underlying contradictions and basic trends of current economic globalization. It analyzes the reasons that caused the decline of the United States and contemporary globalization. It concludes that globalization and rational sovereign states can be compatible if governments resolve disputes through negotiation, defend national and national interests, promote the establishment of international rules and institutions, and build a global governance system in the context of seeking common ground while shelving differences. The researchers used a literature research method since literature works about economic globalization are numerous. This paper focuses on the development process of globalization. The review builds on a large body of research in economics, international political economy, and political science.