In the era of economic globalization, the difference of monetary income and wage income among countries has become an important comparative advantage. Where the unit labor cost is low, entrepreneurs will go there to invest, and the modern mass production process can be realized equally efficiently all over the world. Then capital investment will always seek the country with the lowest labor cost, so as to maximize profits. This rule determines the continuous transfer of global capital and technology from high-wage countries to low-wage countries, changes the original world economic and political structure, and leads to uneven development of the world economy and uneven distribution of social wealth. After the Cold War, the political globalization led by the United States and western countries opened the Pandora's box of economic globalization. Hungry capital flows from the United States and the West to the other half of the earth, just like discovering a new continent, because there is a huge market and abundant cheap labor. In contrast, the United States and the West tend to be saturated because of development, and the space for return on investment is getting thinner and thinner. First, with the transfer of capital and technology from the United States and the West to the other half of the globe, the global economic center has shifted from the Atlantic Ocean to the Pacific Ocean, especially China. Since 1978, China has received $500 billion in foreign investment, making it the second largest investment center in the world after the United States. The top 10 of the top 500 enterprises in the United States have all invested in China, and their business share in China is getting bigger and bigger, surpassing their home countries. Due to the influx of foreign capital, the average economic growth rate of China since the reform and opening up has reached more than 9.5% from 65438 to 0978, which is three times that of the United States. As a result, China has become a world factory and manufacturing power. With the rapid development of manufacturing industry, China immediately became the world's largest exporter and the world's largest foreign exchange reserve country, with foreign exchange reserves reaching US$ 3 trillion. At present, China has surpassed Japan to become the second largest economy in the world, and according to the forecast, the total GDP of China will surpass that of the United States in 20 19.
Secondly, the transfer of the global economic center has led to changes in the global economic structure and economic operation mechanism. Historically, the United States and the West regarded developing countries as the origin of cheap raw materials and the dumping market of commodities, while controlling their own production and research and development. In this global economic circulation mechanism, wealth keeps flowing from developing countries to western developed countries, so that the poorer the poor countries are, the richer the rich countries are. Nowadays, with the economic globalization led by multinational corporations, developing countries are regarded as global cheap production bases, and then their products are shipped back to their own countries, so the United States and western countries have become consumer markets and exporters of agricultural products and raw materials. In this global economic circulation mechanism, developing countries, especially China, have been turned into world factories, which has promoted the accelerated development of their manufacturing industries and the increase of their exports and foreign exchange reserves. On the contrary, western developed countries have become consumption-oriented countries, their development momentum has weakened, job opportunities have decreased, and the middle class has gone from bad to worse. Consumption depends on imports, and the increase of imports leads to the aggravation of trade deficit, the rise of debt and fiscal deficit, and they have changed from the original creditor countries to debtor countries.
Thirdly, the change of global economic structure and the imbalance of economic development lead to the rewriting of global wealth distribution, the decline of the United States and the rise of emerging economies, especially the rise of China. According to statistics, the global foreign exchange reserve is 8. 1 trillion US dollars, and China has 2.4 trillion US dollars, ranking first in the world. Correspondingly, the global total foreign debt is 56.9 trillion US dollars, with the United States, Britain, Germany, France, Italy, the Netherlands, Spain and other western countries in the top 10 respectively. Their total foreign debt has accounted for 82% of the global debt, while the foreign debt of the United States has reached 13.6 trillion US dollars, accounting for 23.9% of the global foreign debt.
Economic globalization has not only changed the distribution of wealth between countries, but also changed the distribution of wealth within countries, leading to the intensification of social inequality and social contradictions and the emergence of national extremism. Multinational companies and global companies in the United States and western developed countries are the main promoters of economic globalization and the biggest beneficiaries of globalization. They found a cheap production base and reduced operating costs. For example, at present, China has become the cheapest production and processing base of multinational companies in the world, and also the largest potential market, which has become the main source of their global profits. They not only avoided the bad luck of scale reduction or bankruptcy, but also expanded their development. Therefore, in the current global economic downturn, the United States and western countries are caught in a debt crisis, but multinational companies stand out and their profits are rising instead of falling. According to statistics, during the five years from 200 1 to 2006, the corporate profits in American GDP rose from 7% to 12%. Compared with the debt-ridden U.S. government, the American Apple Company not only has no debt, but also has $46.3 billion on its books. In fact, many multinational companies have become countries within a country. They use their wealth to influence and kidnap the government, influence the decision-making of the government, and then accelerate the concentration of wealth to themselves. In contrast, in developed industrial countries, the middle class has gone from bad to worse because of the transfer of employment opportunities from rich countries to poor countries. They lost their jobs and had to rely on government relief. They turned their resentment to immigrants and developing countries, thinking that they had taken their jobs. It is undeniable that the transfer of global capital and technology from high-wage countries to low-wage countries caused by globalization has brought good things and hopes to developing countries and promoted rapid economic growth. However, as far as the distribution of benefits is concerned, multinational corporations are the biggest winners, as American economist Paul Krogemann said: "The real source of these advances is those ruthless multinational corporations and insatiable entrepreneurs. Although they only care about how to take advantage of the profit opportunities brought by cheap labor, their actions have inadvertently brought direct consequences to improving people's lives. "
Economic globalization is like an invisible hand, changing our world. It is based on market logic and profit-oriented. Profit is a signal that tells us what we must do to meet the needs of people we don't know. It is through the pursuit of profit that we become altruists from egoists. At the same time, profit is also a signal, which tells us where to research and develop, where to produce and where to sell, so that the benefits outweigh the costs. It is through the pursuit of profit that we can allocate and utilize resources most effectively and make mankind fully prosperous and rich. At present, on the one hand, economic globalization has enabled global resources to be more effectively allocated and utilized, and promoted the growth of the whole world economy, especially the development of developing countries. On the other hand, economic globalization has also led to uneven global economic development and uneven distribution of social wealth. Wealth is concentrated in a few multinational companies in geometric progression, which is pushing the world into an era of turmoil and crisis, and an era in which companies rule the world.