Editing Globalization (section)

==History==
{{main|History of globalization}}
{{For timeline|Timeline of international trade}}

There are both [[Proximate and ultimate causation|distal and proximate causes]] which can be traced in the historical factors affecting globalization. Large-scale globalization began in the 19th century.<ref name="When Did Globalization Begin">{{cite journal |last1=O'Rourke |first1=Kevin H. |first2=Jeffrey G. |last2=Williamson |s2cid=15767303 |year=2002 |title=When Did Globalization Begin? |journal=European Review of Economic History |volume=6 |issue=1 |pages=23–50 |doi=10.1017/S1361491602000023 }}</ref>

===Archaic===
{{Main|Archaic globalization}}
[[File:Archaic globalization.svg|thumb|right|upright=1.8|The 13th century world-system, as described by [[Janet Abu-Lughod]]]]

Archaic globalization conventionally refers to a phase in the history of globalization including globalizing events and developments from the time of the earliest [[civilization]]s until roughly the 1600s. This term is used to describe the relationships between communities and [[State (polity)|states]] and how they were created by the geographical spread of ideas and social norms at both local and regional levels.<ref name="M 45">{{cite book|last=Martell|first=Luke|title=The Sociology of Globalization|year=2010|publisher=Policy Press.}}</ref>

In this schema, three main prerequisites are posited for globalization to occur. The first is the idea of Eastern Origins, which shows how [[Western states]] have adapted and implemented learned principles from the [[Eastern world|East]].<ref name=" M 45"/> Without the spread of traditional ideas from the East, Western globalization would not have emerged the way it did. The interactions of states were not on a global scale and most often were confined to Asia, [[North Africa]], the [[Middle East]], and certain parts of Europe.<ref name=" M 45"/> With early globalization, it was difficult for states to interact with others that were not close. Eventually, technological advances allowed states to learn of others' existence and thus another phase of globalization can occur. The third has to do with inter-dependency, stability, and regularity. If a state is not dependent on another, then there is no way for either state to be mutually affected by the other. This is one of the driving forces behind global connections and trade; without either, globalization would not have emerged the way it did and states would still be dependent on their own [[Production (economics)|production]] and resources to work. This is one of the arguments surrounding the idea of early globalization. It is argued that archaic globalization did not function in a similar manner to modern globalization because states were not as interdependent on others as they are today.<ref name="M 45"/>

Also posited is a "multi-polar" nature to archaic globalization, which involved the active participation of non-Europeans. Because it predated the [[Great Divergence]] in the nineteenth century, where [[Western Europe]] pulled ahead of the rest of the world in terms of [[industrial production]] and [[economic output]], archaic globalization was a phenomenon that was driven not only by Europe but also by other economically developed [[Old World]] centers such as [[Gujarat]], [[Bengal]], coastal [[China]], and [[Japan]].<ref>{{cite book|last=[[Hans Köchler|Kochler]]|first=Hans|title=Globality versus Democracy: The Changing Nature of International Relations in the Era of Globalization|year=2000|publisher=International Progress Organization|location=Vienna|page=35}}</ref>
[[File:NanbanCarrack-Enhanced.jpg|thumb|right|Portuguese [[carrack]] in [[Nagasaki]], 17th-century Japanese [[Nanban trade|Nanban art]]]]

The German [[Economic history|historical economist]] and sociologist [[Andre Gunder Frank]] argues that a form of globalization began with the rise of trade links between [[Sumer]] and the [[Indus Valley civilization]] in the third millennium [[BCE]]. This archaic globalization existed during the [[Hellenistic Age]], when commercialized urban centers enveloped the axis of [[Ancient Greece|Greek]] culture that reached from India to Spain, including [[Alexandria]] and the other [[Alexander the Great|Alexandrine]] cities. Early on, the geographic position of Greece and the necessity of importing wheat forced the Greeks to engage in maritime trade. Trade in ancient Greece was largely unrestricted: the state controlled only the supply of grain.<ref name="GL-H-09">Frank, Andre Gunder. (1998). ''ReOrient: Global economy in the Asian age.'' Berkeley: University of California Press. {{ISBN|978-0-520-21474-3}}</ref>

[[File:Transasia trade routes 1stC CE gr2 macrobia label corrected.png|thumb|upright=1.35|The [[Silk Road]] in the 1st century]]
[[File:New World Domesticated plants.JPG|thumb|Native [[New World]] crops [[Columbian exchange|exchanged globally]] ([[clockwise]]): Maize, tomato, potato, [[vanilla]], rubber, [[Cacao bean|cacao]], tobacco]]
Trade on the [[Silk Road]] was a significant factor in the development of civilizations from China, the [[Indian subcontinent]], [[Persia]], Europe, and [[Arabia]], opening long-distance political and economic interactions between them.<ref>Jerry Bentley, Old World Encounters: Cross-Cultural Contacts and Exchanges in Pre-Modern Times (New York: Oxford University Press, 1993), 32.</ref> Though silk was certainly the major trade item from China, common goods such as salt and sugar were traded as well; and [[religion]]s, [[syncretic]] philosophies, and various technologies, as well as diseases, also traveled along the Silk Routes. In addition to economic trade, the Silk Road served as a means of carrying out cultural trade among the civilizations along its network.<ref>Jerry Bentley, Old World Encounters: Cross-Cultural Contacts and Exchanges in Pre-Modern Times (New York: Oxford University Press, 1993), 33.</ref> The movement of people, such as refugees, artists, craftsmen, [[missionaries]], robbers, and envoys, resulted in the exchange of religions, art, languages, and new technologies.<ref>{{cite web | url = http://yaleglobal.yale.edu/content/legacy-silk-road | title = The Legacy of the Silk Road | publisher = Yale Global | date = 25 January 2013 | access-date = 31 March 2015 | archive-url = https://web.archive.org/web/20150402075517/http://yaleglobal.yale.edu/content/legacy-silk-road | archive-date = 2 April 2015 }}</ref> From around 3000 BCE to 1000 CE, connectivity within [[Afro-Eurasia]] was centered upon the [[Indo-Mediterranean]] region, with the Silk Road later rising in importance with the Mongol Empire's consolidation of Asia in the 13th century.<ref>{{Cite journal |last=Burke |first=Edmund |date=2009 |title=Islam at the Center: Technological Complexes and the Roots of Modernity |url=https://www.jstor.org/stable/40542756 |journal=Journal of World History |volume=20 |issue=2 |pages=186 |issn=1045-6007 |jstor=40542756}}</ref><ref>{{Cite web |last=Ghosh |first=Paramita |date=2024-03-12 |title=Building a new road |url=https://www.newindianexpress.com/cities/kochi/2024/Mar/12/building-a-new-road-3 |access-date=2024-08-29 |website=The New Indian Express |language=en}}</ref>

===Early modern===
{{Main|Proto-globalization}}

"[[Early modern]]" or "proto-globalization" covers a period of the history of globalization roughly spanning the years between 1600 and 1800. The concept of "proto-globalization" was first introduced by historians [[A. G. Hopkins]] and [[Christopher Bayly]]. The term describes the phase of increasing trade links and cultural exchange that characterized the period immediately preceding the advent of high "modern globalization" in the late 19th century.<ref>Hopkins, A.G., ed., 2003. Globalization in World History. New York City: Norton. {{ISBN|0-393-97942-3}} pp. 4–5, 7</ref> This phase of globalization was characterized by the rise of maritime European empires, in the 15th and 17th centuries, first the [[Portuguese Empire]] (1415) followed by the [[Spanish Empire]] (1492), and later the [[Dutch Empire|Dutch]] and [[British Empire]]s. In the 17th century, world trade developed further when [[chartered companies]] like the [[British East India Company]] (founded in 1600) and the [[Dutch East India Company]] (founded in 1602, often described as the first [[multinational corporation]] in which [[stock]] was offered) were established.<ref>Chaudhuri, K.N. (1965\1999). ''The English East India Company: The Study of an Early Joint-stock Company 1600–1640 (Vol. 4).'' London: Routledge/Thoemmes Press.</ref>
[[File:Chafariz d'el Rei (Flemish School).jpg|left|thumb|Lisbon in the 1570s had many Africans due to the [[Atlantic slave trade]].]]

An alternative view from historians Dennis Flynn and Arturo Giraldez, postulated that: globalization began with the first circumnavigation of the globe under the [[Magellan-Elcano expedition]] which preluded the rise of [[Global silver trade from the 16th to 19th centuries|global silver trade]].<ref>China and the Birth of Globalization in the 16th Century, by Dennis O. Flynn and Arturo Giráldez</ref><ref>{{Cite book|url=https://books.google.com/books?id=T5pFDQEACAAJ|title=The Silver Way: China, Spanish America and the Birth of Globalisation, 1565-1815|first1=Peter|last1=Gordon|first2=Juan José|last2=Morales|date=12 October 2017|publisher=Penguin Books|isbn=978-0-7343-9943-4 |via=Google Books}}</ref>

Early modern globalization is distinguished from modern globalization on the basis of [[expansionism]], the method of managing global trade, and the level of information exchange. The period is marked by the shift of [[hegemony]] to Western Europe, the rise of larger-scale conflicts between powerful nations such as the [[Thirty Years' War]], and demand for commodities, most particularly [[slaves]]. The [[triangular trade]] made it possible for Europe to take advantage of resources within the [[Western Hemisphere]]. The transfer of animal stocks, plant crops, and epidemic diseases associated with [[Alfred W. Crosby]]'s concept of the [[Columbian exchange]] also played a central role in this process. European, Middle Eastern, Indian, [[Southeast Asia]]n, and Chinese merchants were all involved in early modern trade and communications, particularly in the Indian Ocean region.

[[File:Launch-of-the-SS-GB.jpg|thumb|The 1843 launch of the ''[[SS Great Britain|Great Britain]]'', the revolutionary ship of [[Isambard Kingdom Brunel]]]]
[[File:Arthur Mees Flags of A Free Empire 1910 Cornell CUL PJM 1167 01.jpg|thumb|During the 19th and early 20th centuries, the [[United Kingdom of Great Britain and Ireland|United Kingdom]] was a global [[superpower]].]]

===Modern===
According to economic historians [[Kevin H. O'Rourke]], Leandro Prados de la Escosura, and Guillaume Daudin, several factors promoted globalization in the period 1815–1870:<ref>{{cite book|url=https://www.cambridge.org/core/books/cambridge-economic-history-of-modern-europe/trade-and-empire/BE789F27408634F4749D61F013897C04|title=Trade and empire (Chapter 4) – The Cambridge Economic History of Modern Europe|chapter=Trade and empire |website=Cambridge Core|date=2010 |volume=1 |pages=100–01|publisher=Cambridge University Press |language=en|access-date=2 March 2018|doi=10.1017/CBO9780511794834.006|isbn=978-0-521-88202-6|s2cid=155275323 |archive-url=https://web.archive.org/web/20180303050324/https://www.cambridge.org/core/books/cambridge-economic-history-of-modern-europe/trade-and-empire/BE789F27408634F4749D61F013897C04|archive-date=3 March 2018|url-status=live}}</ref>

* The conclusion of the [[Napoleonic Wars]] brought in an era of relative peace in Europe.
* Innovations in transportation technology reduced trade costs substantially.
* New industrial military technologies increased the power of European states and the United States, and allowed these powers to forcibly open up markets across the world and extend their empires.
* A gradual move towards greater liberalization in European countries.

During the 19th century, globalization approached its form as a direct result of the [[Industrial Revolution]]. [[Industrialization]] allowed standardized production of household items using [[economies of scale]] while rapid [[population growth]] created sustained demand for commodities. In the 19th century, steamships reduced the cost of international transportation significantly and railroads made inland transportation cheaper. The [[History of transport|transportation revolution]] occurred some time between 1820 and 1850.<ref name="When Did Globalization Begin" /> More nations embraced [[international trade]].<ref name="When Did Globalization Begin" /> Globalization in this period was decisively shaped by nineteenth-century [[imperialism]] such as in [[Scramble for Africa|Africa]] and [[Western imperialism in Asia|Asia]].<ref name="Levinson" /><ref name=":3">{{cite news |last=Gittins |first=Ross |date=12 June 2006 |title=How the invention of a box changed our world – Business – smh.com.au |url=https://www.smh.com.au/news/business/how-the-invention-of-a-box-changed-our-world/2006/06/11/1149964409162.html%0A |url-status=live |archive-url=https://web.archive.org/web/20151114190140/http://www.smh.com.au/news/business/how-the-invention-of-a-box-changed-our-world/2006/06/11/1149964409162.html%0A |archive-date=14 November 2015 |access-date=17 February 2013 |work=[[The Sydney Morning Herald]]}}</ref>

=== Contemporary ===
After World War II, work by politicians led to the agreements of the [[Bretton Woods Conference]], in which major governments laid down the framework for [[International monetary systems|international monetary policy]], commerce, and finance, and the founding of several [[international institution]]s intended to facilitate economic growth by lowering [[trade barrier]]s. Initially, the [[General Agreement on Tariffs and Trade]] (GATT) led to a series of agreements to remove trade restrictions. GATT's successor was the [[World Trade Organization]] (WTO), which provided a framework for negotiating and formalizing trade agreements and a dispute resolution process. Exports nearly doubled from 8.5% of total gross world product in 1970 to 16.2% in 2001.<ref>{{cite web | url = http://www.globalpolicy.org/socecon/trade/tables/exports2.htm | title = World Exports as Percentage of Gross World Product | publisher=[[Global Policy Forum]] | archive-url = https://web.archive.org/web/20080712023541/http://www.globalpolicy.org/socecon/trade/tables/exports2.htm | archive-date = 12 July 2008 | access-date =11 November 2009}}</ref> The approach of using global agreements to advance trade stumbled with the failure of the [[Doha Development Round]] of trade negotiation. Many countries then shifted to bilateral or smaller multilateral agreements, such as the 2011 [[United States–Korea Free Trade Agreement]].

The invention of shipping containers in 1956 helped advance the globalization of commerce.<ref name="Levinson" /><ref name=":3" /> Since the 1970s, [[aviation]] has become increasingly affordable to [[middle class]]es in [[developed countries]]. [[Open skies]] policies and [[low-cost carrier]]s have helped to bring [[Competition (economics)|competition]] to the [[Market (economics)|market]]. In the 1990s, the growth of low-cost communication networks cut the cost of communicating between countries. More work can be performed using a computer without regard to location. This included accounting, software development, and engineering design.

[[Student exchange program]]s became popular after [[World War II]], and are intended to increase the participants' understanding and tolerance of other cultures, as well as improving their language skills and broadening their social horizons. Between 1963 and 2006 the number of students studying in a foreign country increased 9 times.<ref name=varghese/>

[[File:Comet 4.jpg|thumb|[[de Havilland Comet|D.H. Comet]], the world's first commercial [[jet airliner]], entered service in 1949.]]
Since the 1980s, modern globalization has spread rapidly through the expansion of capitalism and neoliberal ideologies.<ref name=":0">{{Cite book|title=Gender, Development, and Globalization: Economics as if all people mattered.|last1=Lourdes|first1=Benería|last2=Gunseli|first2=Berik|last3=Maria S.|first3=Floro|publisher=Routledge|year=2016|isbn=978-0-415-53748-3|location=New York|page=95}}</ref> The implementation of neoliberal policies has allowed for the privatization of public industry, deregulation of laws or policies that interfered with the free flow of the market, as well as cut-backs to governmental social services.<ref>{{Cite book|title=The Shock Doctrine|title-link= The Shock Doctrine|last=Klein|first=Naomi|publisher=Vintage|year=2008|location=Canada|page=68}}</ref> These neoliberal policies were introduced to many developing countries in the form of structural adjustment programs (SAPs) that were implemented by the World Bank and the International Monetary Fund (IMF).<ref name=":0" /> These programs required that the country receiving monetary aid would open its markets to capitalism, privatize public industry, allow free trade, cut social services like healthcare and education and allow the free movement of giant multinational corporations.<ref>{{Cite journal|last1=Lourdes|first1=Benería|last2=Deere|first2=Carmen Diana |author-link3=Carmen Diana Deere|last3=Kabeer|first3=Naila|date=8 August 2012|title=Gender and International Migration: Globalization, Development and Governance|journal=Feminist Economics|volume=18|issue=2|pages=1–33|doi=10.1080/13545701.2012.688998|s2cid=144565818}}</ref> These programs allowed the World Bank and the IMF to become global financial market regulators that would promote neoliberalism and the creation of free markets for multinational corporations on a global scale.<ref>{{Cite journal|last=Rai|title=The History of International Development: Concepts and Contexts|journal=Women, Gender and Development Reader|page=15}}</ref>
[[File:Crowded Bund on summer evening.jpg|thumb|With a population of 1.4 billion, [[China]] is the world's second-largest economy.]]
In the late 19th and early 20th century, the connectedness of the world's economies and cultures grew very quickly. This slowed down from the 1910s onward due to the World Wars and the [[Cold War]],<ref>{{cite journal|last=Wolf|first=Martin|year=2001|title=Will the nation-state survive globalization?|journal=Foreign Affairs|volume=80|issue=1|pages=178–190|url=https://www.foreignaffairs.com/articles/2001-01-01/will-nation-state-survive-globalization|doi=10.2307/20050051|jstor=20050051|access-date=12 September 2017|archive-url=https://web.archive.org/web/20170911162328/https://www.foreignaffairs.com/articles/2001-01-01/will-nation-state-survive-globalization|archive-date=11 September 2017|url-status=live|url-access=subscription}}</ref> but picked up again in the 1980s and 1990s.<ref>Ritzer, George (2011). ''Globalization: The Essentials.'' NY: John Wiley & Sons.</ref> The [[revolutions of 1989]] and subsequent [[liberalization]] in many parts of the world resulted in a significant expansion of global interconnectedness. The migration and movement of people can also be highlighted as a prominent feature of the globalization process. In the period between 1965 and 1990, the proportion of the labor force migrating approximately doubled. Most migration occurred between the [[developing countries]] and [[least developed countries]] (LDCs).<ref name =Saggi2002>{{cite journal | last1 = Saggi | first1 = Kamal | year = 2002 | title = Trade, Foreign Direct Investment, and International Technology Transfer: A Survey | journal = World Bank Research Observer | volume = 17 | issue = 2| pages = 191–235 | doi = 10.1093/wbro/17.2.191 | citeseerx = 10.1.1.17.7732 | s2cid = 16620922 }}</ref> As economic integration intensified workers moved to areas with higher wages and most of the developing world oriented toward the international market economy. The collapse of the Soviet Union not only ended the Cold War's division of the world – it also left the United States its sole policeman and an unfettered advocate of free market.{{According to whom|date=February 2019}} It also resulted in the growing prominence of attention focused on the movement of diseases, the proliferation of popular culture and consumer values, the growing prominence of international institutions like the UN, and concerted international action on such issues as the environment and human rights.<ref>{{Cite book|title=The World Transformed 1945 to present|last=Hunt|first=Michael H.|year=2004|page=399}}</ref> Other developments as dramatic were the Internet's becoming influential in connecting people across the world; {{As of|2012|6}}, more than 2.4 billion people—over a third of the world's human population—have used the services of the Internet.<ref>{{cite web |url=http://www.treese.org/intindex/95-11.htm |title=The Open Market Internet Index |publisher=Treese.org |date=11 November 1995 |access-date=15 June 2013 |archive-url=https://web.archive.org/web/20130601045949/http://www.treese.org/intindex/95-11.htm |archive-date=1 June 2013  }}</ref><ref name="stats">{{cite web|url=http://www.internetworldstats.com/stats.htm|title=World Stats|date=30 June 2012|work=Internet World Stats|publisher=Miniwatts Marketing Group|access-date=4 January 2015|archive-url=https://web.archive.org/web/20110623200007/http://www.internetworldstats.com/stats.htm|archive-date=23 June 2011}}</ref> Growth of globalization has never been smooth. One influential event was the [[late 2000s recession]], which was associated with lower growth (in areas such as [[International call|cross-border phone calls]] and [[Skype]] usage) or even temporarily negative growth (in areas such as trade) of global interconnectedness.<ref name="Signs of life">{{cite news | url = https://www.economist.com/news/finance-and-economics/21632514-despite-some-recent-reversals-there-evidence-globalisation-march | title = Signs of life | newspaper = The Economist | date = 15 November 2014 | access-date = 29 August 2017 | archive-url = https://web.archive.org/web/20170902092234/https://www.economist.com/news/finance-and-economics/21632514-despite-some-recent-reversals-there-evidence-globalisation-march | archive-date = 2 September 2017 | url-status = live }}</ref><ref>Faiola, Anthony. (2009). "A Global Retreat As Economies Dry Up." [https://www.washingtonpost.com/wp-dyn/content/article/2009/03/04/AR2009030404221.html ''The Washington Post'', 5 March 2009.] {{Webarchive|url=https://web.archive.org/web/20101204175739/http://www.washingtonpost.com/wp-dyn/content/article/2009/03/04/AR2009030404221.html |date=4 December 2010 }}</ref>

The [[China–United States trade war]], starting in 2018, negatively affected trade between the two largest national economies. The [[economic impact of the COVID-19 pandemic]] included a massive decline in tourism and international business travel as many countries temporarily closed borders. The [[2021–2022 global supply chain crisis]] resulted from temporary shutdowns of manufacturing and transportation facilities, and labor shortages. Supply problems incentivized some switches to domestic production.<ref>{{cite news |url=https://www.cnn.com/2022/05/24/investing/premarket-stocks-trading/index.html |title=Globalization is coming undone, and that's a huge red flag |author=Allison Morrow |date=May 24, 2022 |publisher=[[CNN]]}}</ref> The [[economic impact of the 2022 Russian invasion of Ukraine]] included a blockade of Ukrainian ports and [[International sanctions during the 2022 Russian invasion of Ukraine|international sanctions on Russia]], resulting in some de-coupling of the Russian economy with global trade, especially with the European Union and other Western countries.

Modern consensus for the last 15 years regards globalization as having run its course and gone into decline.<ref>{{Cite news |last1=Walker |first1=Marcus |last2=Hayashi |first2=Yuka |date=2023-08-09 |title=Sputtering Trade Fuels Fears of a Fractured Global Economy |language=en-US |work=[[The Wall Street Journal]] |url=https://www.wsj.com/articles/sputtering-trade-fuels-fears-for-a-connected-world-81c99922 |access-date=2023-11-03 |issn=0099-9660}}</ref> A common argument for this is that trade has dropped since its peak in 2008, and never recovered since the [[Great Recession]]. New opposing views from some economists have argued such trends are a result of price drops and in actuality, trade volume is increasing, especially with agricultural products, natural resources and refined petroleum.<ref>{{Cite news |last=Zumbrun |first=Josh |title=Is Globalization in Decline? A New Number Contradicts the Consensus |url=https://www.wsj.com/economy/global/is-globalization-in-decline-a-new-number-contradicts-the-consensus-60df8ecf |access-date=2023-11-03 |website=WSJ |language=en-US}}</ref><ref>{{Cite journal |last1=Ganapati |first1=Sharat |last2=Wong |first2=Woan Foong |date=August 2023 |title=How Far Goods Travel: Global Transport and Supply Chains from 1965–2020 |journal=Journal of Economic Perspectives |language=en |volume=37 |issue=3 |pages=3–30 |doi=10.1257/jep.37.3.3 |issn=0895-3309|doi-access=free |hdl=10419/272042 |hdl-access=free }}</ref> The 21st century melting of the Arctic will also affect global trade, as it is paving the way for [[Arctic shipping routes|shorter trade routes]].<ref>{{Cite web |date=2024-11-25 |title=Melting Arctic ice could transform international shipping routes, study finds {{!}} Brown University |url=https://www.brown.edu/news/2022-06-22/arctic |access-date=2024-12-10 |website=www.brown.edu |language=en}}</ref>