Reflection on economic globalization and factor pr...
According to the theory of international economics，the essence of economic globalization is the deepening of the division of labor in the international market and its opening up and development.In the process of international division of labor and the opening up and development of market，along with the development of international trade and investment，international factors including capital，technology，labor，management and talents can maximize the resource allocation efficiency under the effect of international market mechanism，reflecting the maximum efficiency and benefits of economic growth.In the meantime，considering the market allocation of resources in the process of international factor flow can achieve the goal of factor price equalization，the final result of the international flow of factors will make the returns of all kinds of factors equal.
However，questions we have to think about are: How sufficient is the international flow of production factors in the process of economic globalization？ Are there any differences in the flow of various factors？In other words，under the premise of international division of labor and market opening-up，can production factors achieve complete and full free flow？ Obviously，due to the influence of various countries ’ systems，cultures and other factors，especially the strict international immigration system in all countries，immigration is under severe restriction，making it impossible for the international movement of labor，in particular the general labor factors.Under such conditions，only the so-called “advanced production factors”，such as capital，technology and talents，or high-quality factors can realize global flow and allocation，which leads to the problem of incompleteness of factor flow.It is precisely because of the incompleteness of factor flow that the factor price equalization theorem does not exist anymore.As a result，international trade brings impact on the labor markets of different countries，which will inevitably cause a “substitution effect” of global industry transfer in their labor employment markets.Thus，the incompleteness of international division of labor and factor flow conflicts with the “factor price equalization” theorem in the traditional international trade theory，that is，factor price equalization cannot occur under the condition of incomplete factor flow.This will certainly generate two practical problems: First，international trade will bring “substitution effect” of employment market to different countries ’ labor markets；second，globalization itself will bring more dividends and benefits to high-level factors such as capital with sufficient liquidity，while bring disadvantages to the general labor market that does not have sufficient liquidity，resulting in conflicts of capital-labor interests within a country and even globally.Obviously，the impact of globalization mechanism on the capital-labor relations is another theoretical and practical issue worthy of research and attention in international economics.