Kinh tế quốc tế

Thành viên:
Khắc Nam, Ngọc Tuấn, Thị Loan, Văn Toàn, Hoàng Vy
Ca học 4 (T2-T4)

1/ What are your view about globalization ?

Globalization describes how different world cultures, populations, and economies are
interdependent from each other. It’s a process of an interaction among people the government
and companies from different nations. It is a consequence of cross-border business. Technology,
goods, investments, information, and services along with the labor market are the most popular
components of such activity. Nations have established worldwide integration over many
centuries by enabling economic, political, and social partnerships.

Well, everything has two sides so tha globalization has many pros as well as some cons. On one
hand, it has some positive aspects. First of all, as more money is poured into developing
countries, there is a greater chance for the people in those countries to economically succeed and
increase their standard of living due to an extended labor market. Secondly, global competition
encourages creativity and innovation, which create more job opportunities and it can keep prices
for commodities, services in check.Thirdly, they improve the global economy, they expand
knowledge of foreign cultures as well as they make decisions for the world not the country.
Finally, it improved education due to the global expansion of corporations and developing
countries are able to reap the benefits of current technology.

On the other hand, globalization has had a negative effect on people in developing countries
because the advancement of technology has reduced such employment and increased global need
for skilled professionals. Majority of people in developing countries don’t have skills, while the
available jobs are poorly paid due to high demand caused by globalization. Secondly, they make
the rich people richer than they are now because globalization operates mostly in the interests of
the richest countries, which continue to dominate world trade at the expense of developing
countries. Finally, globalization is viewed by many as a threat to the world's cultural diversity,
which might drown out local economies, traditions and languages.
2/ What are the main arguments of the authors? Do you agree
with them?

The COVID-19 pandemic is putting globalization on a huge challenge. As supply chains disrupt
and countries are collecting medical supplies and restricting travel, this crisis has led to a
reassessment of the entire world economy now intertwined. Not only does globalization make
disease spread rapidly when there are infectious diseases, it also makes companies and countries
dependent on each other, easily collapsing when there are abnormal fluctuations. Now,
companies and countries have come to understand how vulnerable they are.

The COVID-19 pandemic, caused by this new bacterium, has shown us just how easy the global
system is to collapse. Some economic sectors, especially areas of economic activity, have
"redundant" components and production spread across many countries can overcome this crisis
with relative ease. Other economies may be on the verge of collapse if this pandemic causes a
single supplier in a single country to stop producing a critical and widely used ingredient.
As the world's planners deal with this pandemic and its consequences, they may have to look
directly at the point that the world economy may not work as they think it is. Globalization
makes people increasingly specialized, a model that produces extraordinary effects but also
creates extraordinary weaknesses. Unusual and difficult times like the COVID-19 pandemic have
exposed such weaknesses. A single supply or a region in the world specializes in a certain
product, can create fragmentation weaknesses that no one anticipated during a crisis, causing the
entire supply chain to collapse. More of such weakness will be revealed in the coming days.

The results can change world politics. When the health and safety of its people is endangered,
states can prevent the export or confiscation of essential supplies, even if this action would be
harmful to an ally or a neighbor. When globalization retreated like that, countries would use
generosity to influence other nations if they could.

Do you agree with them?

Yes. I agree because :

The new coronavirus is shaping up to be an enormous stress test for globalization. As critical
supply chains break down, and nations hoard medical supplies and rush to limit travel, the crisis
is forcing a major reevaluation of the interconnected global economy. Not only has globalization
allowed for the rapid spread of contagious disease but it has fostered deep interdependence
between firms and nations that makes them more vulnerable to unexpected shocks. Now, firms
and nations alike are discovering just how vulnerable they are.

But the lesson of the new coronavirus is not that globalization failed. The lesson is that
globalization is fragile, despite or even because of its benefits. Lack of fail-safe manufacturing
alternatives can cause supply chains to break down, as they have in some medical and health-
related sectors as a result of the new coronavirus. Producers of vital medical supplies have been
overwhelmed by a surge in global demand, pitting countries against one another in a competition
for resources. The outcome has been a shift in power dynamics among major world economies,
with those that are well prepared to combat the new virus either hoarding resources for
themselves or assisting those that are not—and expanding their influence on the global stage as a
result.

As policymakers around the world struggle to deal with the new coronavirus and its aftermath,
they will have to confront the fact that the global economy doesn’t work as they thought it did.
Globalization calls for an ever-increasing specialization of labor across countries, a model that
creates extraordinary efficiencies but also extraordinary vulnerabilities. Shocks such as the
COVID-19 pandemic reveal these vulnerabilities. Single-source providers, or regions of the
world that specialize in one particular product, can create unexpected fragility in moments of
crisis, causing supply chains to break down. In the coming months, many more of these
vulnerabilities will be exposed.

The result may be a shift in global politics. With the health and safety of their citizens at stake,
countries may decide to block exports or seize critical supplies, even if doing so hurts their allies
and neighbors. Such a retreat from globalization would make generosity an even more powerful
tool of influence for states that can afford it.

3/ What are the impact of developing countries if the

globalization process ends? Give some examples

Globalization creates greater opportunities for firms in less industrialized countries to tap into
more and larger markets around the world. Thus, businesses located in developing countries have
more access to capital flows, technology, human capital, cheaper imports, and larger export
markets. Globalization allows businesses in less industrialized countries to become part of
international production networks and supply chains that are the main conduits of trade

Some economists argue globalization helps promote economic growth and increased trading
between nations. The disease pandemic caused by COVID-19 is exposing the fragility of this
globalized system.

Some economic sectors, especially those with a high degree of redundancy and where production
is spread across multiple countries, could cope with the crisis relatively well.

If globalization is terminated, the countries dependent on the import-export economy will suffer
heavy losses and the declining economy leads to increased unemployment. Because Vietnam
has a large and cheap labor force and is invested a lot by foreign companies, if they withdraw
from Vietnam, the number of unemployed workers increases dramatically.
Unable to exchange technology, science, medical materials and not learn from each other will
make the quality of technology - modernization dramatically decrease

Example: Vietnam is a country with a trade surplus and dependence on trade with the total
import-export turnover in 2019 of 517 billion USD. If the process is end, Vietnam will suffer a
recession and it will be difficult to develop the economy in a sustainable manner.