The unity of globalization and localization of economic systems

Study of globalization as a process of world integration and harmonization. Definition of localization as a process of purposeful orientation towards the priority development of internal potential with the limitation of foreign economic relations.

Рубрика Экономика и экономическая теория
Вид статья
Язык английский
Дата добавления 02.08.2021
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Krasnoyarsk state pedagogical University named after V. P. Astafiev

The unity of globalization and localization of economic systems

Orlov Kirill

Summary

The article considers two contradictory processes, globalization and localization of economic systems. It is concluded that these two processes occur in parallel and complement each other. Globalization appears as a process of world integration and harmonization, localization also appears as a process of purposeful orientation to priority development of internal capacity, with restriction of external economic relations.

Keywords: globalization, localization, integration, glocalization.

Problem statement

One of the basic concepts of dialectics as a philosophical system is the unity and constant struggle of opposites as a source of any development. In macroeconomics, in terms of philosophy, coexistence and competition of trends towards localization and globalization of economic systems is one of the ways in which this struggle is realized.

Problems of economic integration and the localization was consistently relevant for people always, from the time of the emergence of the first economic systems, long before the time of the creation of the first Nations, because all human communities had to enter into a relationship with the surrounding tribes and peoples, and with them to create a mutually acceptable system of interaction, and, simultaneously, to protect their own political and economic interests against adverse external factors. The history of mankind in this aspect can be considered as the story is constantly co-existing and sometimes successive tendencies to unification to separation.

Data analysis

In our time, a global economic system is being created, in which connections and dependencies of most Countries are closely intertwined. As a result, the network of market relations began to work on a global scale. Economic ties between the two countries now are not limited only to foreign trade, they are becoming more diverse. In science, there are a number of theoretical interpretations of international integration processes, each of them has its advantages and disadvantages, the General theory of economic integration in science has not yet been developed. S. Yu. Glazyev, for example, proposed to analyze integration processes taking into account the allocation of technological (or world economic) structures (in the development of Kondratiev's long wave theory and innovative Schumpeter cycles). Under the technological structure is understood as a set of technologies and production of the same level. Within the framework of this concept, the transition to the postindustrial stage is a replacement of the sectoral division of the economy into technological division, that is, the development of new technologies in all sectors will be important now, not the development of certain industries. This will be the formation of the sixth technological order[1].

International practice also shows examples of different systems of implementation of globalization mechanisms. There are many different systems of regional integration in the world economy, all of which have the combined effect of overall globalization in the complex universe of the world's economic and political processes. globalization integration localization economic

An additional factor is that the theory of globalization, if ever created, will be an interdisciplinary science, as globalization is explored in aspects of interest to them, both economists and philosophers, political scientists, historians and other experts; the same idea of globalization in sociology was born [2].

Most supporters of globalization identify three areas within which globalization processes: economy, politics, culture. The economy becomes more liberal; the policy more affordable, the culture is more standard. Opponents of globalization as a whole proceed from the fact that in the global world a single society will not and cannot be harmonious, on the contrary, it will be a kind of chaos, the consequences of this will be unfavorable for humanity as a whole. The range of concepts of criticism of globalization is also quite wide.

It should be noted that another important circumstance accompanying the processes of globalization and actually ensuring the entire course of globalization is the formation of a single information space on our planet, the formation of the information society,

Economic localization is inextricably linked to economic globalization, because there is no doubt that each country and each region has a certain amount of natural resources and a labour force with its intelligence and experience. This is why the international division of labour is taking place, which is based, first, on the fact that economic resources-natural and human - are very unevenly distributed between countries and regions. Secondly, the fact that the profitable production of various goods implies the availability of certain technologies and resources[3]. Therefore, the international division of labour is a logical and logical specialization of individual countries and regions in the production of certain goods. The very term "international division of labor" characterizes the dialectical unity of the two unidirectional, but inextricably linked phenomena - the creation of a unified economic space is possible only in the presence of this "division of labor", that is, the creation of differences in cooperating economies, the creation of economic localization. If there were no economic localization, if there were no differences between the economies of different countries and regions, there would be no international division of labor, there would be no sense in international economic activity. With this division of labour, each country must take advantage of its own advantages, which give it its own unique competitive opportunities for success in the international market.

The science has developed many theories of competitive advantages of countries, starting with the concept of A. Smith, but common to all these theories is the undeniable fact that countries do have their own competitive advantage and own competitive disadvantages on the world market, hence the need for wise use of these advantages and limit the impact of faults, that is what is called localization economies.

Local, or regional, economic system means a set of interconnected and orderly elements and processes occurring in society, the most important being production in combination with distribution, consumption and exchange[4]. This set forms an integral economic structure of the local community. The local economic system has a certain autonomy, i.e. partial independence from the external economic system in some aspects.

Conclusion and recommendations

Localization in its economic aspect can be defined as a special state of the economy, characterized by its purposeful focus on the primary development of internal capacity, with elements of limiting external economic relations arising under the influence of internal and/or external factors. The nature, as well as the degree of influence of these factors on the state of the economy is very diverse, as they have different bases of origin: historical, geographical, political and socioeconomic. M. N. Makarova includes in the concept of a regional economic system, in addition to the economy itself, also the population and the resource base, and therefore proposes to take into account not only in economic, but also psychological and institutional factors: "a stable set of socio-psychological attitudes of the population"^].

From all this, we can conclude that the concept of economic localization is quite complex and multivalued, and in any conversation on the topic of localization first of all it is necessary to understand the context and what kind of localization we are talking about in this particular case.

As a General conclusion, the following statement can be suggested: in the second half of the last century, the world economy entered a period of radical changes associated with the process of formation of post - industrial society, taking place against the background of integration processes and comprehensive globalization. In parallel with the processes of globalization, localization processes, which make up dialectical and dynamic unity with globalization, which is sometimes called glocalization, are also increasing.

Linerature

1. Glaziev, S. Y. global Economic structures in global economic development // Economics and mathematical methods. - 2016. - No. 2. - P. 12-24.

2. Kurbatov V. I. Contemporary Western sociology: Analytical review of the concepts. - Rostov n/D: Feniks, 2001. - 416 p.

3. Figurnov, N. P. the international economy. - M.: Progress, 2005. - 436 p.

4. Postalyuk, M. P. Innovative relations in economic system: the theory methodology and mechanism of implementation. - Kazan: Publishing house of KSU, 2006. 420 p.

5. Makarova, M. N. Formation of monitoring of social and labor systems of municipalities taking into account their spatial localization. The author's abstract Diss. kand. economics. - Yekaterinburg, 2013.

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