Waves of globalization
GLOBALIZATION has been around for a long time. Industrialisation and technological changes—such as the invention of the steam ship, which produced cheaper means of migrating and trading between continents—marked one period of globalisation in the 19th century. In similar fashion new inventions—jet aircraft, the internet—helped to encourage later periods of it. In a World Trade Report, the WTO compared three broad periods, looking at global growth in GDP, in population and in the trade of goods. Migration rates are shown only for four countries of the “New” world.
Source: http://www.economist.com/node/11751235 (edited)
Source: http://www.economist.com/node/11751235 (edited)
First wave of globalization (1870-1913)
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Second wave of globalization (1945-1980)
- Transport costs continued to fall;
- Trade liberalization began after WWII; -By 1980, trade between developed countries in what concerns manufactured goods was free of barriers - Barriers facing denveloping countries were removed only for those primary commodoties that did not compete with agriculture in developed countries; - Most developing countries still had trade barriers in place; -Consequences: . Led to agglomneration economies in manufacturing production in denveloped countries . Redistribution of manufacturing within developed countries to lower wage areas |
Third wave of globalization (1980-present)- Many developing countries broke into the global markets for the first time (include China, Bangladesh, Sri Lanka, Turkey, Morocco, Indonesia, Philippines, Mexico);
-Between 1980 and 1988, share of total exports of developing countries from 25% to 80%; During 1980, share of total exports of developing countries of services increased from 9% to 17% This has to do with: - Changes in economics policies-> many developing countries undertook major trade liberalization reforms and reduced barriers to foreign investiment; - Continued progress in diclining transport costs (containerization, airfreight and new information is costless to ship). Current trend: marked increase in globalization of services due to information technologies. |