International trade - Essay Example

History of Globalization: An Overview Economic historians have better approaches regarding the concept of globalization. According to O’ Rourke and Williamson (1996: 499- 530), the world economic condition was well organized and exceptionally well integrated even by the standards of late 20th century. Next to it, world historians further elaborate that the phenomenon of globalization stretches back to quite a few centuries. According to a famous socialist and economic historian, Andre Gunder Frank (1998), “there was a single global world economy with a worldwide division of labor and multilateral trade from 1500 onward.

” On the other hand, Jerry Bentley (1999: 5-9) argued that ‘single global economy’ even existed before 1500. . concepts also match with the concept of Adam Smith who considered these two events as the most significant parts of recorded history that had strongly influenced the economy and society of the world (Tracy, 1990: 1- 13). However, the historian of modern period has diverse approach in this regard. For example, according to Menard (1991: 228- 75), the globalization boom appeared with transport revolution and before 1800; the overall world economy was badly integrated while Immanuwl Wallerstein considers that the European economy in sixteenth century brought forward the phenomenon of economic globalization that stood upon the mode of capitalist production (Wallerstein, 1974).

He further believes that various countries like Russia, India, West Africa and the Ottoman Empire became the part of ‘one global economy’ somewhere between 1750 and 1850. This was the time period when trade among these countries carried out in bulk. However, whatever the time period of globalization in actual; there are abundant of evidences that support that 19th century held a very huge globalization bang where international trade expanded all over the world. From above mentioned detail, it can be easily observed that the basic aim behind all the process of globalization was just to develop business operations worldwide.

This was also to facilitate the global communication which is a result of advancements in technology and technical knowledge. The objective behind the whole process is just to provide a superior competitive situation to an organization with lesser possible operating costs in order to produce greater number of goods and services as well as consumers. In order to gain this approach, resources are diversified, new investment prospects are developed by opening new markets and