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 ­^Ķ·§©À¡GEconomic globalization¡]¸gÀÙ¥þ²y¤Æ¡^

¡i©ú³ø±M°T¡jUnder the principle of free economy, cross-national exchanges take place in the world market at production, finance and trade levels. The advent of the Internet has removed geographical restrictions on international economic activities like exchanges of capital, skills and talents. That has resulted not only in a free market but also in a globalised production chain because of which developed countries scramble to invest in regions where labour and materials cost less. The process has internationalised the marketing and selling of products.

Multinational economical organisations

Economic globalisation is characterised by interactions between and the integration of economies in the world. Not only are there supranational economic cooperations alliances such as the Association of Southeast Asian Nations (ASEAN) and the Trans-Pacific Partnership (TPP), but organisations dedicated solely to international economic affairs have come into existence too. One example is the World Trade Organisation (WTO), of which China and Hong Kong are members.

Multinational companies ¡Ñ A sound system

Multinational companies, which are at the heart of economic globalization, have already set up their regional headquarters in Hong Kong or designated the city as the centre for handling their Asia-Pacific operations. Secretary for Commerce and Economic Development Gregory So has said that, as Hong Kong has a sound system and world businessmen are familiar with its legal system, business practices and style of living, it is at an advantage in connecting with the rest of the world.

International division of labour ¡Ñ Sweatshops

International division of labour refers to corporations' practice of outsourcing their non-core manufacturing procedures and the production of their lower-tier products where costs are lower. Under such a principle, corporations are on the lookout for countries where labour and raw materials are cheapest. When a country is no longer "competitive" in this aspect, capital flows to another where production is even less costlier in what is called "a race to the bottom" (an expression critics of economic globalisation commonly use).

China used to be called the "world factory". It has lost such advantages in recent years, and its manufacturing industries are struggling to adapt to the new situation. Furthermore, as environmental protection and labour rights have given way to the drive to maximise profits and minimise production costs, the ¡§sweatshop¡¨ problem has arisen. One example is "Fast Fashion", which has in recent years gained popularity. Fast Fashion brands like Forever 21, ZARA and H&M have already been involved in "sweatshop" accusations.

Currency circulation

Currency circulation is a driving force behind economic globalisation. Now the Euro is used in 19 countries that belong to the European Union. The Euro was launched with the aim of sharing the member states' growth. But it has also had member states share one another's troubles. In 2009, Greece, a member of the eurozone, was caught up in a sovereignty debt crisis, while the "PIIGS" (Portugal, Italy, Ireland, Greece and Spain) experienced economic downturns. That has badly diminished the Euro's credibility.

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