Understanding

Globalization
History
2.0
aka “Size Medium”
Global Trade
 Global Trade
• Exchange of goods between countries

• Results in exports plus imports

Trade and Globalization

• The governments of
different countries take
authority to sell thing to
each other
• The greater number of international trade
happens between private enterprises
 The Growth of World Trade
• World exports started to expand after the
end of the French Wars (roughly 1562-1596).
• But international trade was low until the year
1800
The so-called first wave of Globalization

 Decline of trade barriers

 New transportation
technologies
 Communications Technology
Steamships and Steam-powered
locomotives
Telegraph and telephones
 Mass migration of labor
• Europe to China
 Great Britain

• spearheaded the first wave of globalization

around the year of 1870 up until the outbreak
of World War I in 1914
 Second Industrial Revolution
• Mercantilism
 New Industries and Production Methods
Made countries such as Germany and US to leap to
UK

• Steel
• Chemicals
• electrical goods,
• Engineering products
based on international
combustion engines
The price for sea and land transportation
plummeted
 Colonization
• A central system of power dominates the
surrounding land and its components

• system of sending raw materials to a nation and

purchasing finished goods
 America aka the
“Pioneering Spirit Animal”

The Manifest
Destiny belief
 In the year 1893, historian Frederick Jackson
Turner declared that the American frontier was
now closed
 As opposed to the second wave of
Globalization
• Massive investments in multiple countries
• Outflow of capital (UK was 8% as opposed to
the 2% average of developed countries)
• Infrastructural and government bonds, capital
investment
• Immense number of migration
Benefits of Global trade
Raised wages in low income countries

Purchasing Power
 Exporting of Goods
(gives also a wide range of goods)

Generating of Jobs

Companies gain a competitive advantage

Which are determined by the following

Product you’ll competition

provide
Target
market
Downside and Disadvantages of Global Trade

• Southern De-Industrialization
 Blocking Imports

Reducing Tariffs

Reduction of Jobs
In DOMESTIC INDUSTRIES
References
References
References
• PAPA, Katrina Andrea
A.
• Global Trade
• Group 1