Globalization History PDF

Globalization ORIGIN and HISTORY GEC103 ELC According to Nayan Chanda (2007), it is because of our basic human need to make our lives better that made globalization possible. Therefore, one can trace the beginning of globalization from our ancestors in Africa wh...

Globalization ORIGIN and HISTORY GEC103 ELC According to Nayan Chanda (2007), it is because of our basic human need to make our lives better that made globalization possible. Therefore, one can trace the beginning of globalization from our ancestors in Africa who walked out from the said continent in the late Ice Age. Chanda (2007) mentioned that commerce, religion, politics and warfare are the “urges” of people toward a better life. These are respectively connected to four aspects of globalization and they can be traced all throughout history: trade, missionary work, adventures, and conquest. Globalization is an historical process that began with the first movement of people out of Africa into other parts of the world. Traveling short or long distances, migrants, merchants and others have delivered their ideas, customs and products to new lands. The melding, borrowing and adaptation of outside influences are found in many areas of human life.  MAIN IDEAS From ancient ties among early civilizations, the exchanges of goods, customs, and knowledge evolved through connections that were often solidified through trade relations and the sharing of ideas. This continued through the colonization of new lands beginning in the fifteenth century. Beginning in the mid-twentieth century, globalization advanced with the promotion of free trade and international cooperation, the end of the Cold War, the introduction of new communication and transportation technologies, and the rise of the internet. Silk Road EARLY GLOBALIZATION (1st century BC-5th century AD, and 13th-14th centuries AD) Around the 1st Century BC, Silk Road was first introduced to the Roman Empire. China used the Silk Road for its trade with Europe through Central Asia. Beside silks, there were many products that were traded such as textiles, spices, grain, vegetables, fruits, etc. Intellectual and cultural exchange. Spice Routes From the 7th to 15th centuries, spices made their way across Europe, Asia, and Northeast Africa. Primarily, the goods traded during this time were spices, like cloves, nutmeg, and mace which originated in the Maluku islands of Indonesia. Like silk, spices were luxury items, and trade volume remained low. However, the spice trade was conducted via ship — adding a new aspect to international trade. With the advent of spice routes, the connection between the East and West was strengthened as new sea routes were established. Christopher Columbus The era known as the Age of Exploration, 01 sometimes called the Age of Discovery, officially began in the early 15th century and lasted through the 17th century. The period is characterized as a time when Europeans began exploring the world by sea in search of new trading routes, wealth, and knowledge Columbus’s discovery of America is 02 believed to have begun the journey of modern globalization.  Impact of the Age of Exploration Knowledge Massive wealth Navigation and Mapping New food, plants, and animals Indigenous people were decimated Trade of enslaved people  Imperialism From the mid-eighteenth century to the early nineteenth century, the British, Portuguese, Dutch, and Spanish focused on building their empires through land acquisition and business development. Most of Africa and large parts of Asia were under colonial rule by the end of the nineteenth century. Global trade increased as imperial governments took advantage of the labor and material resources in their colonies resulting in negative exchanges in which empires prospered to the detriment of local and Native populations. Innovations like the steam engine and mass production equipment accelerated the pace of industry. Modern Globalization World War I (1914-1918) slowed the rate of globalization, as nations closed their borders and focused on what they each could contribute to the war effort. International trade resumed after the war but then collapsed during the Great Depression (1929- 1939). Globalization was reinvigorated after World War II (1939-45). In July of 1944, representatives from forty-four nations gathered in Bretton Woods, New Hampshire, in the United States, for the United Nations Monetary and Financial Conference, also known as the Bretton Woods Conference.  Powerful nations made rich by colonialism and imperialism strongly supported the globalization of economies and politics in the mid-twentieth century. Technological advancements in the world of business resulted in innovations in automobiles, airplanes, television, and telephones, all of which contributed to the effort. These and other developments increased the flow of workers around the world and made communication more efficient.  World Trade Organizations General Agreement on Tariffs and Trade (GATT) was established in 1947 to regulate international commerce. This promoted free trade by reducing tariffs and removing trade restrictions between nations. In 1995, the GATT was replaced by a new international body called the World Trade Organization (WTO). The WTO provided rules for international trade. It created a structure for creating trade agreements and helped resolve disputes between nations. While the GATT dealt mainly with trade in goods, the WTO also covered services and intellectual property. It encouraged nations to enter into free trade agreements and form regional trade alliances. Fair Trade Critics of free trade have called for nations, business interests, and organizations to adopt fair trade policies. They argue that unregulated free trade can often lead to inequality. Free trade has caused job losses in some countries, as manufacturers move production to where labor costs are least expensive. In some places, free trade has led to environmental problems and the depletion of natural resources. The fair trade movement promotes equity in production and trade by supporting disadvantaged manufacturers and ensuring a fair minimum price for comparable products. Internet Connectivity The rise of the internet in the twenty-first century has generally provided more opportunities to participate in the global economy around the world. It has allowed for more rapid exchanges of goods, services, cultures, knowledge, technologies, and ideas. Supply chains have increasingly become globally integrated. Often, research, sourcing, production, and distribution are each carried out in different regions of the world for multinational enterprises. WHAT’S NEXT? The End of Globalization?