Globalization is a fact and we are all concerned. When I asked people about what they think about Globalization, some people said that Globalization is a good thing while others said that globalization is a bad thing. When many people heard the word “Globalization”, some people think of something that generate a lot advantages and immense opportunity when others think of something that generate a lot disadvantages. So what is Globalization? When we talk about Globalization, we talk about the phenomena that affects the world in general, in both positives and negatives ways.
China is an excellent example of what is good or bad about Globalization. While Globalization has posed a lot benefits in China, it has also posed a lot liabilities. Although Globalization has posed a lot benefits in terms of economy, culture and politics in China. I think that the economic benefits and prosperity of China is the major force behind Globalization and one of the most advantageous factors of globalization in China. My goal in this paper research, is to outline that the benefits of Globalization on China’s economy is based on Foreign Direct Investment (FDI) which is the ownership style mainly used by China.
To achieve this goal, I have organized my paper into three main sections. In the first section, I provide a definition of Globalization and give a general aspect of Globalization in the world and especially in China. In the second section, I discuss the definition of Foreign Direct Investment (FDI) and give a general aspect. I end my paper with a third section in which I claim that Foreign Direct Investment is one of the most advantageous aspect of Globalization that has played an important role in China’s economy.
Then I will give specific details about how China has been successfully in mobilizing inward FOREIGN Direct Investment (FDI) and involved alongside economic development and strengthened institutional capacity in China. As might be expected, many definitions of globalization have been published, revealing both the extent of interest in the topic, and also the continuing issues surrounding its utility as an explanatory concept for the changes occurring in our individual and collective lives.
Almost all the definitions explain that Globalization is one of the phenomena that involve a huge and created contact among people from different cultures, nations, and empires with subsequent social, cultural, economic, and political interdependencies. Globalization is one of the most important and controversial challenges facing the world in the 21st Century is associated with globalization. The increasing interconnectedness of people and places through Converging economics political and cultural activities.
Although economic activities may be the major force behind globalization, the consequences affect all aspects of land and life: cultural patterns, political arrangements environment and social development are all undergoing profound change. Zheng states that: “Globalization has thrown up challenges and opportunities which all countries, especially developing ones, have to grapple with and China is no exception. In fact, China, the most populous country in this world, has globalized rapidly over the past two decades” (1).
Globalization has posed a lot benefits on China. As part of the benefit, in term of economic terms, Foreign Direct Investment has numerous benefits for economics and consumer in China. Globalization has facilitated trade between countries around the world. Thanks to globalization, technological differences between countries decrease. The multinational corporations relocate their activities to China. Guthrie said that: “Across the Shanghai skyline for every neon sign advertising Chinese company, you will also see the logo of foreign multinational. (2)
Thanks to the Internet and media, a citizen of a southern country has access to the same information, the same knowledge, the same digital content which northern countries has access. The information and knowledge become accessible to all, which developed the economy of China. To demonstrate that, Zheng said in his book: “The rise of Internet society and information technology (IT) has also led to the emergence of China’s new economy” (7). To Again, looking at the Cultural terms, thanks to globalization, there is reconciliation between peoples and cultures.
Today most of the Chinese dress like their westerner counterpart: jeans, tee shirt, basket shoes is common in China society replacing the traditional local dress. Also it is not a secret that western music like hip hop music, RNB, rock and jazz dominate the China and the new generation are not interesting anymore to a local music as did they elders. Furthermore, a Chinese can learn the cuisine of another country and vice-versa. According to Guthrie, “in Beijing, cranes skyline of the city’s sprawling urban landscape; fast food restaurants and Starbucks’s buttress up against the borders of the forbidden city and Tiananmen square” (1).
The mix marriage between a China-African, ChinaEuropean and American is increasing due to interaction and the movement of people around the globe. Also, the level of religion choices become multiple. The language of communication became easier among people and for example the English language is dominating the China and is becoming the language of interest in elementary, high school, and colleges. In environmental terms, Globalization also allows for greater democratization and strengthening of human rights and the rights of nature and animals.
The environment is more protected. One of the main the benefit of Globalization on China’s economy is based on Foreign Direct Investment (FDI). According to Kang, Song-jin, Yong-ch’ol Pak, and Sussangkarn Chalongphob, “as a momentous signifier of China’s reform and opening-up, the introduction and utilization of Foreign capital have played an active role in China’s economic growth and development in the past three decades” (223). “The Foreign Direct Investment” Kang, S? ng-jin, Yong-choI Pak, and Sussangkarn Chalongphob page 224.
Attraction to Foreign Direct Investment (FDI) is primarily aimed at introducing external competitors as well as cultivating and improving its market economic environment. China’s huge market demand and rapid economic growth have accelerated the global FDI inflow into China. The main factors attracting foreign companies’ investment are the Chinese market’s further opening-up, as well as China’s huge market potential and cheap labor supply. FDI is exerting an increasingly important influence on China’s economic growth, industrial and technical development and market completion environment.