Essay on Globalization And The Global Trade

793 Words Nov 12th, 2015 4 Pages
Globalization itself is the result of European expansion. For there to be “Global Trade,” there first has to be a global market. The “Columbian Exchange” came before the Global Trade. The Columbian Exchange is the exchange of people, diseases, domesticated animals and plants, and other cultural knowledge between the peoples of the Old World and the New World.
Now the Global Trade is defined as “economic exchange of goods and other products between the different peoples of the world via established trade networks” and the Global Economy is defined as “integrated global market in which goods and services are bought and sold globally with prices determined by supply and demand.” The Industrial Revolution also played a large role as one of the factors that led to the development of Global Trade, as well as the “Emergence of the Global Economy.” This helped establish overseas colonies and trade and it ended European isolation. The industrializing countries of Europe needed markets for the constantly growing quantities of goods being produced in their factories, as well as new sources of raw materials and food to maintain the production of these industries and to feed their workers. Initially, the American colonies were the primary overseas source, which resulted in increased economic expansion even after independence.
With globalization and global trade and the emergence of the global economy, one thing that the global market needs is cheap labor; the cheaper it was,…

Related Documents