Discuss the state of globalization from 1880 to 2007Solution

Discuss the state of globalization from 1880 to 2007

Solution

Globalization can be traced back to the prehistoric period. Greek empires have been known to trade with India and Spain. The silk road is another example of goods being traded between empires and civilizations. Majority of goods traded were agricultural products followed by luxury goods such as porcelain vessels, artwork, wine, textile etc.

In the 19th century, after the industrial revolution, the growth of companies led to an increased need for globalization. Cooperation between nations led to an increase in global trade of goods and services. In the 20th century, however, there was a significant rise in globalization with multinational companies springing up in all the five continents. Several key agreements were made among nations including the General Agreements on Tariffs and Trade, the North American Free Trade Agreement, the establishment of World Trade Organisation etc, indicating the era of global interconnectedness.

Post World War I :-

Globalization decreased after the end of World War I as nations affected by the war had to rebuild themselves. Other important reasons were that the war shook up the financial stability, free trade agreements and investments in other countries. There was an increase in the trend of autarky after the war. Tariffs, trade barriers and sanctions became the norm, thereby severing many of the connections betweens nations.

Post World War II:

After the end of the war, there was a rise in globalization with the establishment of the Bretton Woods Conference, which framed policies and regulations for trade between nations. The United States and European nations which emerged victorious in the war established their multinational companies in most parts of the world. There was also sharing of knowledge among nations. It was during this time that institutions such as the World Bank and the IMF (International Monetary Fund) were setup. There was encouragement of free trade policies among nations.

1990\'s to 2010:-

Breakthroughs in communication technologies such as the internet boom and mobile phones contributed largely towards not just goods trade but also cultural globalization through films, music and art. The rise of westernization was viewed by some as a threat to their own cultural diversity and hence there was also an increase in the momentum to spread the idea of individuality and indigenous culture.