A Metacognitive Reading Report on Economic Globalization: From

Microeconomic Foundation to National Determinants

In this reading report, an article written by Silvia Marginean, who is an Associate

Professor at Lucian Blaga University in Sibiu, delves into the dimensions of economic

globalization. The study explores the relationship between different perspectives on

globalization and the microeconomic factors that influence it. Economic globalization

refers to the growing interdependence of global economies, which is fueled by factors

such as international trade, capital mobility, and rapid technological diffusion. On one

hand, microeconomic determinants encompass various factors that affect individual

economic outcomes, such as prices, expectations, preferences, and related elements.

Macroeconomic determinants, on the other hand, are factors that affect an economy's

overall performance, such as unemployment, growth rate, and inflation. The article

emphasizes the value of defining and measuring economic globalization, as it provides

insights into its origins, impacts, and trends.

Going through the article, I started researching and was able to discover that

during the period from 1880 to 1913, Europe and North America witnessed a significant

influence of internationalization, enabling the flow of goods and capital across borders.

This era marked the first wave of globalization, driven by industrialization, technological

advancements, liberal economic policies, and financial integration. Subsequently, the

second wave of globalization emerged after World War II, fueled by various factors,

including Nazi Germany's expansionist policies, Japan's territorial ambitions, economic

depression, unresolved issues from World War I, and failed appeasement policies. This
wave saw contributions from multilateral institutions, trade liberalization, technological

advancements, foreign direct investment, global supply chains, and financial

globalization. Although the third wave of globalization has yet to occur, there is

widespread agreement that we are in the midst of it. This wave is characterized by the

growing influence of technology and digitalization, the rise of emerging economies, and

the potential for greater financial inclusion through cryptocurrency integration.

After reading the article, there are things that are still unclear such as

globalization, due to its complexity the word itself can be challenging. However, once we

grasp its essence, we understand it as a comprehensive concept encompassing the

global exchange of information, goods, and services. It involves integrating and

connecting economies and societies worldwide, including elements such as

international trade, information sharing, communication, financial transactions, and

cultural exchange. While the article explores indicators to assess the scale and impact

of globalization, it needs to provide concrete examples of these indicators. For instance,

when considering the globalization of technology and knowledge, questions may arise

about whether to focus on the number of individuals affected by the technology or the

number of people benefiting from shared knowledge. Additionally, the article mentions

three relevant indexes, “The KOF Index of Globalization”, “Maastricht Globalization

Index”, and “AT Kearney Globalization Index”, without clarifying their specific purposes

and methodologies, leaving room for ambiguity.

Through my studies, I have gained an understanding of globalization and its

effects on our lives. Grasping its core and multifaceted impacts allows us to

comprehend the interconnectedness, interdependence, and transformative nature of our

globalized world. I used to think that we can’t measure the magnitude and intensity of

globalization. By utilizing globalization indexes that combine various indicators, we can

gain valuable insights for a comprehensive assessment. I used to think that

globalization holds insignificance as it provides countries with access to less expensive

natural resources and labor however that was not the case. This also brings negative

consequences, such as when businesses decide to relocate their operations.

If given the chance, I would ask about the causes and consequences of

globalization. This question would explore the factors driving globalization, such as

technological advancements, trade liberalization, and capital flows, as well as their

resulting impacts on economies, societies, and cultures. Additionally, I am interested in

understanding the benefits and drawbacks of globalization and examining its

advantages and disadvantages. Lastly, I'd like to know how globalization can be

managed and what steps can be taken to mitigate its negative consequences, as this

would center on the necessary policy and governance frameworks to effectively

navigate and shape globalization, maximizing its benefits while minimizing its negative

consequences.

To summarize everything, Silvia Marginean is an Associate Professor at Lucian

Blaga University, discusses economic globalization and its dimensions. The study

explores the relationship between globalization perspectives and microeconomic

factors. The article emphasizes the importance of defining and measuring economic

globalization to understand its origins, impacts, and trends. The author also highlights

two historical waves of globalization during the period from 1880 to 1913 – The Global

Financial Integration and after the period from 1945 to 1951 – World War 2.