Economic globalization refers to the process that world economies are becoming increasingly interdependent. It is widely believed that the first real historical phase of economic globalization started in the 19th century. As a turning point in this process, the Industrial Revolution brought the innovations in the transportation (i.e. railroads and ships) and the communication (i.e. underwater transatlantic cable), which facilitated the movements of people and goods. At the same time, the government also played an important role in the economic globalization. It supported the free trade by launching new laws to protect capital movements across countries, and encouraged international trade with low tariffs. As claimed by Huwart et al. (2013a),
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As of 1945, foreign investment as a share of global GDP accounted for only 4.5%, compared with that of 17.5% before the First World War (ibid).
Economic globalization resumed after the Second World War. A new international economic relationship was shaped under the Bretton Woods agreement, under which governments achieved consensus on the economic co-operation among nations. However, the integration of world economies did not progress evenly. Specifically, the Non-Aligned Movement of countries hampered the economic co-operation in a large scale.1 Yet, economic relationship among non-aligned nations grew tighter within the borders or areas of influence (Huwart et al., 2013b).
The progress of economic globalization has considerably accelerated since the mid-1980s. This can be attributed to the technological advances and falling of international trade barriers. While the development of technologies have lowered the costs of transportation and communication, the liberalization of trade and capital markets has encouraged international trade and investments during the time (Tatyana and Katherine, 2000).2 Multinational corporates (MNCs), which act as vital carriers, support the economic globalization by globally producing and allocating resources in terms of the principle of profit …show more content…
Bandung formulated the concept of non-alignment based on the Third World desire not to become involved in the East-West ideological confrontation of the Cold War, and to focus instead on national independence struggles, the alleviation of poverty, and economic development’. This is available at website:
As of 1945, foreign investment as a share of global GDP accounted for only 4.5%, compared with that of 17.5% before the First World War (ibid).
Economic globalization resumed after the Second World War. A new international economic relationship was shaped under the Bretton Woods agreement, under which governments achieved consensus on the economic co-operation among nations. However, the integration of world economies did not progress evenly. Specifically, the Non-Aligned Movement of countries hampered the economic co-operation in a large scale.1 Yet, economic relationship among non-aligned nations grew tighter within the borders or areas of influence (Huwart et al., 2013b).
The progress of economic globalization has considerably accelerated since the mid-1980s. This can be attributed to the technological advances and falling of international trade barriers. While the development of technologies have lowered the costs of transportation and communication, the liberalization of trade and capital markets has encouraged international trade and investments during the time (Tatyana and Katherine, 2000).2 Multinational corporates (MNCs), which act as vital carriers, support the economic globalization by globally producing and allocating resources in terms of the principle of profit …show more content…
Bandung formulated the concept of non-alignment based on the Third World desire not to become involved in the East-West ideological confrontation of the Cold War, and to focus instead on national independence struggles, the alleviation of poverty, and economic development’. This is available at website: