Globalization History and Trade

• Technology is constantly advancing, increasing efficiency, and reducing task completion times
• Kenneth Waltz suggests that globalization is often underestimated when compared to the past

Trade

• Trade is a key factor in cross-border relations between nations
• Trade involves the exchange of goods and services between individuals or countries

Periods in the History of Globalization

• Silk Roads (1st Century BC – 5th Century AD)
• Spice Routes (7th – 15th Centuries)
• 16th Century
• Age of Discovery (15th – 18th Century)
• First Wave of Globalization (19th Century – 1914)
• Globalization 4.0 (20th Century)

Silk Roads (1st Century BC – 5th Century AD)

• A network of trade routes that connected East and West
• Silk was a common trade item, made from silkworm fibers woven into textiles
• Luxury products from China started appearing in the Eurasian continent/Rome in the 1st Century BC, during the Han Dynasty
• Trade shifted from local to global, according to Vanham (2019)
• The Silk Road was key to movement and opened doors for trans-border relations
• According to Kuzmina (2008), the Silk Road facilitated the movement of people, objects, and ideas for many countries

The Role of the Scythians

• The Scythians were nomadic tribes without permanent homes
• They shared goods and resources across different locations

Zhang Qian and the Expansion of Trade

• Zhang Qian facilitated trade expansion as a diplomat from the Han Dynasty
• He traveled west, negotiated with nomadic tribes, and studied trade systems in Persia and India

The Spread of Religion and Disease

• The Silk Road helped spread Buddhism, Christianity, Zoroastrianism, and Islam
• The Bubonic Plague spread through the Silk Road

Spice Routes (7th – 15th Century

• The spice route connected east and west for over two thousand years
• Spices include cinnamon, cloves, pepper, and turmeric and were considered luxury goods

16th Century

• After the fall of Constantinople (1453), the Silk Road declined
• Europeans built trade and connections worldwide
• Islamic trade in the Middle Ages was mainly spices transported by sea, unlike silk
• In the Medieval Era, key spices were Mace, Nutmeg, and Cloves (from Maluku Islands, Indonesia)
• Spices were highly expensive and in demand in Europe
• Spices were used as medicine and food preservatives

Age of Discovery (15th – 18th Century)

• Europeans explored trade routes, discovering America
• Goods like tomatoes, coffee, and chocolate were introduced to Europe

First Wave of Globalization (19th Century – 1914)

• This was a period of intense globalization
• By the late 18th century, Great Britain dominated the world geographically, through establishing the British Empire and technologically

First Industrial Revolution

• Marked by the Era of the First Industrial Revolution which was characterized by machines and manufacturing industries
• Shift from farming/agriculture to industry and commerce
• Transportation of goods and other materials became quicker
• The Industrial Revolution’s Advantages: machine invention for cloth spinning and weaving, steam engines for power, coal for smelting and refining iron, and railway construction
• Increased economic growth across participating nations was a result of the industrial revolution
• The Industrial Revolution’s Disadvantages introduced technical changes that caused job displacement, pollution, limited education and unequal economic development between nations

First Industrial Revolution

• occurred around 1760 – 1860
• It involved the invention of steam engines and the construction of railroads
• It brought innovative mechanization and social change

Second Industrial Revolution

• It was referred to as the Technological Revolution with rapid discoveries and standardization from the late 19th to early 20th century which made the mass production possible

Environmental Degradation

• The environmental degradation experienced as a result of rapid industrialization

Third Industrial Revolution

• Began in the 1960s
• A.k.a "the Digital or Computer Revolution" with advancements made in semiconductors and the creation of mainframe computing and the internet

Fourth Industrial Revolution

• A.k.a "Globalization 4.0" with increased mobile internet
• More present mobile internet, by smaller and more powerful sensors that have become cheaper, and by artificial intelligence and machine learning.

Globalization 4.0 (20th Century)

• It encompasses the Golden Age of Globalization with China and the US dominating globally, where cyberworld is the new partition of globalization
• Detrimental effects via enlarging climate change are also a feature

Globalization 1.0

• The Pre-World War I
  • Which was launched by historic group in trade costs
  • Globalization came with almost no government support

Globalization 2.0

• The Post-World War II where there trade in goods combined with complimentary domestic policies
  • Market was in charge of efficiency while the government was in charge of justice
  • Establishment of institute based, rule-based international governance UN, IMF, World Bank, GATT/WTO, International Labor Organzation, etc.

Globalization 3.0

• Led to a new word of manufacturing which high-tech was combined with low wages with the establishment of global supply chains as factories crossed international borders
  • Which caused many to name it: “New Glabalization, Hyper-Globalization, Global Value Chain Evolution”

Challenges of Globalization 4.0

• Political crises and Global level conflict
• Economic Exclusion
• Human Resource
• Income Inequality
• Unintended Consequences
• Infrastructural Challanges