HISTORY OF

GLOBALIZATION
ARCHAIC PERIOD
 Time of earliest civilization until 1600s.
 Idea of eastern origin adapted by Western states.
 Interaction was not in global state.
 Confined to :
Asia
North Africa
Middle East
Certain part of Europe
 States were not as interdependent as they are today
because of distance .
 Trade in the Silk Road
China
India
Persia
Europe
Arabia
EARLY MODERN
 1600-1800
 Proto-globalization
 Introduced by historians, Hopkins and Bayly.
 Rise of maritime European empires in the 16 th and
17th centuries.
 17th century –chartered companies of :
British East India (1600)
Dutch East India (1602)
 Slave Trade
Modern
 19th century
 Globalization is a direct result of Industrial
Revolution
 Industrial Revolution :
 standardized production of household items using
economies of scale
 Rapid population growth
 Created sustained demand for commodities
 Steamship reduced the cost of international
transport.
 Railroad made inland transport cheaper.
 1829-1850: Transport Revolution Occurred.
 More nations embraced international trade .
 Globalization was shaped by the 19th century
imperialism in Africa and Asia.
 Invention of shipping containers in 1956 helped
advance globalization of commerce.
 World War II
 After World War II –work by politicians led to the

agreements of the Bretton Wood Conference

laid down :
 international monetary policy in finance and

commerce.
 founding international institutions intended to

facilitate economic growth by lowering trade

barriers.
 WTO-GATT’s successor provided framework for
negotiating and formalizing trade agreements and
dispute resolutions.
Exports nearly doubled : 8.5 % in 1970
16.2% in 2001
 Approach of using global agreements to advance
trade stumbled with the Doha Development Round
Trade Negotiation .
 Countries shifted to bilateral or smaller multi-
lateral agreements such as South Korea-US Free
Trade.
 Since the 70s

- Aviation has become increasingly affordable to

middle class in developed countries
-open skies policies
-low cost carriers
-competition in the market
 1990s
 low cost communication networks cut the cost of
communicating between countries.
 More work can be performed using computer
without regard to location .
-accounting
-software development
-engineering design
 After WWII
-student exchange program became popular
-increase the participant’s understanding and
tolerance of other culture
-improve language skills
-broaden social horizon
 1963-2006
- 9x increased of students studying in foreign
countries
 Late 19th and early 20th century

-connectedness of world’s economies and cultures

grew very quickly.
 1910s onward

 -slowed down due to world wars and cold war.

 1980s and 1990s –picked –up again
 Revolutions of 1989

-subsequent liberalization resulted in significant

expansion of global interconnectedness.
Growth of Globalization
 Has never been smooth
 Late 2000 – Recession

-lower growth –cross border phone calls

-Skype usage
-negative growth –global interconnectedness
 2013-recovered

-shift economic activity to emerging economies

 Migration and movement of people
-Prominent feature of globalization
-most migration occur between developing and
least developed countries .
 Internet has become influential in connecting

people across the world .

- billions are using services of the internet.
Reference :
 https://en.wikipedia.org/wiki/Globalization