Globalization in World History - Research Paper Example

Globalization in World History Introduction In this essay, I am going to argue that globalization would have been possible without the development of internet as it existed long before the invention of internet and accelerated because of improved transport and communication, technological advancements, trading blocs and trade organizations, emergence of international financial organizations and growth of Multinational Corporations (MNCs). The internet was a product as well as a catalyst of globalization and has enhanced its rapid spread in recent years. Globalization is defined by Ritzer as “a set of processes involving increasing liquidity and the growing multi-directional flows of people, objects, places, and information, as well as structures they encounter and create that are barriers to, or expedite these flows” (Ritzer 28). It is interconnectedness in the whole world making it a global village. However, its origins are contested with some arguing it began in ancient times while others attribute it to post-World War 11, yet others think it is a recent phenomenon. It is therefore difficult to trace its origins but for the sake of this paper, it shall be assumed that it began in Ancient civilization with improved navigation and transportation through the Mediterranean. Since internet and the web were not up and running and browsers for navigation had not been invented 20 years ago, and nations were increasingly getting interconnected before then, it is only reasonable to conclude that globalization was possible even without the invention of the internet. From the definition given by Ritzer, it is clear that globalization involves the flow of people, objects, places, and information (Ritzer 28). When we consider the movement of people or migration from one country to another or across the globe, this cannot be due to internet connectivity; rather, it is the result of improved transport technology such as the airlines. Before, people used to move to different places using horses and later railroads and cars. This meant they could not move to far places hence trade was mostly local or what Ritzer calls “solid global epoch” (Ritzer 4). People, things and information did not spread far and wide and this was worsened by barriers created by nation-states to bar movement such as the ‘Great Wall” of China. However, with improved transport the liquid epoch of globalization began. Now there are faster airplanes to transport people and goods to different places in a matter of hours which could have taken days or months hence making globalization easier. The first propeller driven passenger plane flying from London to Paris was launched in 1919 and thereafter jet planes were invented (Mediaif.emu, nap). Furthermore, people are now willing to work in different countries making global remittance transfers especially to developing countries one of the major components of GNP of different countries. Although the internet plays a role in spreading information about available opportunities, mass migration of people would not have been possible without improved transport infrastructure. The movement of goods just like people also required improved transport and communication and most important of all elimination of trade barriers. Transport technology began with the invention of steam and combustion engine during the industrial revolution in the 18th century. Further developments in road, railway, sea, and air travel followed making transportation easier, cheaper, faster and more efficient. Air transport ensures goods reach their destination faster hence enabling movement especially of horticultural products. This would not be possible without such means of transport even if internet was available. Another major breakthrough in transportation thus facilitating globalization was the invention of steel containers from 1970 (Ritzer 15). This resulted in increased scale of international trade as containers could carry huge quantities of goods to far destinations including oil and grain. The ships also made globalization possible as they could carry such containers and people to different parts of the world. They were especially helpful during transatlantic trade. However, for Martell, interdependency was a major driving force in globalization (135-158). Nations had to be interdependent for them to engage in trade otherwise nations would still be dependent on their own products hence no global interconnectedness would take place. Industrial revolution that enabled standardization of production thus played a role in creating this interdependency as countries exploited gains from economies of scale to gain increased specialization. Moreover, the revolution also led to population explosion and consequently increased demand for goods. Demand for goods on the other hand, led to European imperialism that shaped globalization in the 19th century (Hopkins 5-7). Even with improved transport, globalization would not have been possible without the removal of trade barriers or liberalization. One of such agreements to eliminate barriers to trade was the General Agreement on Tariffs and Trade (GATT) following the end of Second World War to regulation of world trade and help economies recover from war and after failure to form an International Trade Organization (ITO). It came into force in January 1, 1948 with the objective of reducing barriers to international trade through reduction of tariffs, quotas and subsidies (Manfred 40). GATT was instrumental in liberalization of trade thus accelerating globalization as more and more countries under the treaty became interconnected. Reduced tariffs or import taxes and removal of quotas or restrictions on quantity ensured large scale trade was taking place globally although not so much for developing countries which have low scale volume trade. This only means that even without internet, globalization had taken off and there was no stopping it. GATT was replaced by the creation of the World Trade Organization (WTO) on January 1, 1995. WTO is a global international organization dealing with rules of trade between nations. It is also a forum where trade negotiations are carried out and disputes arising out of such agreements between nations settled to ensure the trade runs smoothly, predictably and freely as possible (WTO, 2014). By June 2014, it had a membership of 160 countries both developed, emerging and developing countries. The organization also offers technical assistance and training for developing countries to ensure they are also engaged in trade. As such, developing countries are increasingly globalizing even though many of them are not technologically advanced; that is, few people are connected via internet. Other international organizations that control trade among nations include: European Union (EU), North American Free Trade Agreement (NAFTA), and North Atlantic Treaty Organization (NATO) especially during Cold War, and Association of Southeastern Asian Nations (ASEAN). Globalization does not only include exchange of goods but also sports and other services. In regards to sports, soccer under the International Federation of Football Association (FIFA) has become a global phenomena as evidenced by world cup games especially in South Africa that host many nations and participants from all over the world. Besides, the games are broadcast in every corner of the world showing how interconnected the world is (Ritzer 3). The International Olympic Committee (IOC) also organizes the Olympic Games every four years that involve participants from world over. The Olympic Games began in Ancient Greece and were held among city-states but now have become a completely global phenomenon. Internet is a recent invention and these sports have been in place for decades hence it is only sensible to conclude that the internet did not play part in this process of globalization. It has only made the game popular in recent years as more people can watch it in different platforms. The world is also increasingly becoming global in regards to financial services as evidenced by various financial and economic crises such as the 2007 financial crisis which began with the U.S financial institutions after a bust of the housing bubble and spread to the rest of the world. Financial liberalization began with the Bretton Wood Conference of 1844 (Manfred 38). The conference aimed at finding measures to stabilize world currency and offer credit for international trade in the post-WWII era hence the establishment of agencies for advancing global financial system such as the International Monetary Fund (IMF) and World Bank (WB). These multilateral agencies enabled capital transfers to countries for development thus enhancing trade and globalization especially in less developed countries in Africa (Cassis 201). As a result, the world has become more financially integrated in terms of Foreign Direct Investments (FDI) in the 20th century due to these financial organizations. Another phenomenon that has contributed to globalization is the presence multinational corporations (MNCs) and transnational corporations (TNCs). These according to Ritzer were following Max’s dictum that “as capitalist organizations compete, profit would fall and that capitalism had to expand or die” (42). This was the case with most companies such as Ford and General Motors in the U.S which were forced to expand to other parts of the world. Also Toyota in Japan and Nissan in Korea not forgetting McDonalds and Wal-Mart which have penetrated almost all countries in the world leading to some critics to refer globalization as Americanization. These organizations are involved in global flows of parts; people and money hence are completely involved in globalization. With or without the internet, these companies had to expand to other parts to look for markets for their goods and cheaper production in countries where labor restrictions are few and labor is cheap or what is called ‘sweatshops’ (Ritzer 42). This was a result of trade liberalization especially the establishment of free trading zones (FTZ), export processing zones (EPZ) and industrial parks where tariffs are minimal or eliminated, import quotas not restricted, and there is no custom intervention (O’Sullivan & Sheffrin 454). With internet and no such preferential trade agreements, globalization would not have been possible. Another crucial driver of globalization was the advancement in communication technology without which globalization would not be the way it is today; it has spread wildly and rapidly to all parts of the global. In ancient times, people used to send mails through people on horsebacks hence the term snail mail as it would take days to deliver them. Besides, information could not be sent to far places hence limited globalization. The invention of script machine, print machine, and newspapers was a step further in the globalization process as it enabled transmission and storage of information (Mediaif.emu). With the help of improved transportation, information could now reach a larger area and different geographical boundaries. The Telegraph was a turning point in communication as it separated the function of transport from communication. Telegraph cables could be used to transfer information to different places without having to travel there. The first Transatlantic cable was laid down in 1858 and transatlantic telephone cable in 1956 thus offering a global network platform (Ritzer 39). Later came the radio, Television, telephone enabling mass communication via a wireless channel. The invention of Sputnik by USSR in 1957 during Cold War revolutionalized globalization with satellite technology. Digital technology has also played a great role in globalization. It enhanced electronic banking or electronic Bank Transfers (EFT), Society for Worldwide Interbank Financial Telecommunication (SWIFT) in 1977 thus ensuring connectivity of banks worldwide (Mediaif.emu). There were also the mobile phones and text messaging that allows people to communicate and connect worldwide. This improved technology enable communication and sharing of information thus market convergence of voice, data, multi-media, mobility and computing. The modern internet based on Arpanet (1969) was developed in 1988 thus marking the turning point for global interconnection for billions (Ritzer 41). It has enabled globalization move from solid and liquid to gaseous form with rapid flow of information and data across the globe thorough the e-commerce, email, twitter, facebook, instant messaging, websites and blogs. It has totally transformed commerce. According to the International Telecommunication Union (ITU) World Report of 2013, there were more than 2.7 billion internet users. Though the World Wide Web, people can access collection of interconnected documents and information on any topic as well as shopping and downloads of music and videos. However, this does not mean that globalization would not have taken place without it; it just served to accelerate the process. Conclusion In this essay, I have argued that globalization was possible without development of the internet. This is because globalization was a result of myriad of factors such as improved transport and communication, trade liberalization through organizations such as WTO, EU, ASEAN, NAFTA and GATT. Capital flows and FDI were also enhanced by Bretton Wood organizations such as IMF and WB. Other organizations that enhance globalization are FIFA and IOC that connect people through sport. MNCs and TNCs have also contributed a great deal to globalization in recent years as they enable flow of goods, people and capital. Although the internet has accelerated globalization in recent years, it is not the sole driver of globalization hence globalization would have been possible without it. Works Cited Cassis, Youssef. Capitals of Capital: A History of International Financial Centres, 1780-2009. Cambridge, UK: Cambridge University Press, 2010 Hopkins, A.G (ed). Globalization in World History. New York City, NY: Norton, 2003 International Telecommunication Union. ITU World Report 2013. www.itu.int Martell, Luke. The Sociology of Globalization. Policy Press, 2010. Mediaif.emu. Effects of Technological Developments on Globalization Process. Web. November 17, 2014. www.mediaif.emu.edu.tr/pages/atabek/GCS7.html O’Sullivan Arthur and Sheffrin, Steven M. Economics: Principles in Action. Upper Saddle River, New Jersey: Prentice Hall, 2003. Ritzer, George. Globalization: The Essentials. NY: John Wiley & Son, 2011. Steger, Manfred B. Globalization: A Very Short Introduction. New York: Oxford University Press, 2013. WTO. www.wto.org Read More