Economic globalization has been occurring since mass transportation was engineered. However, it has grown significantly in the modern era due to an increase in technological capabilities. People who once were only able to trade after a long oceanic voyage can now access the internet and purchase goods from across in an instant. This increase in economic interconnectedness has had far-reaching implications for the world. Economic globalization has had a positive impact on the world, as nations have been able to increase speed of trade, specialize and grow economically at rates unseen in human history. Ever since the trade ship brought the first form of economic globalization, the speed of trade has been continually increasing. The Silk Road
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While this type of economic interdependence can sometimes have negative impacts, in the long run, it allows for a more productive world. During the Silk Road period, silk was so popular in the west, much of the western economy depended on China’s ability to produce it. Similarly, during the industrial revolution, the nations that were able to industrialize the fastest had larger shares in the world’s industrial economy. The advent of the internet expanded this dramatically. Robert Samuelson writes, “From 1997 to 2006, trade expanded 6.8 percent annually compared with 4 percent growth for the world economy. The gap reflected greater globalization: more cross-border supply chains and more specialization” (Samuelson). As more nations traded goods with one another, their ability to specialize increased and the production of the world economy continues to grow. This type of economic specialization can cause some xenophobia within nations as they look to maintain their job growth, as seen in the Brexit event recently. However, these problems are minuscule compared to the production that results from specialization. Without economic globalization, the access of virtually the whole world to a product like the iPhone would not exist. Therefore, specialization has been a positive impact of economic
While this type of economic interdependence can sometimes have negative impacts, in the long run, it allows for a more productive world. During the Silk Road period, silk was so popular in the west, much of the western economy depended on China’s ability to produce it. Similarly, during the industrial revolution, the nations that were able to industrialize the fastest had larger shares in the world’s industrial economy. The advent of the internet expanded this dramatically. Robert Samuelson writes, “From 1997 to 2006, trade expanded 6.8 percent annually compared with 4 percent growth for the world economy. The gap reflected greater globalization: more cross-border supply chains and more specialization” (Samuelson). As more nations traded goods with one another, their ability to specialize increased and the production of the world economy continues to grow. This type of economic specialization can cause some xenophobia within nations as they look to maintain their job growth, as seen in the Brexit event recently. However, these problems are minuscule compared to the production that results from specialization. Without economic globalization, the access of virtually the whole world to a product like the iPhone would not exist. Therefore, specialization has been a positive impact of economic