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The Two Eras of Globalization and Trade

Decent Essays

Globalization and Trade: Since the mid of the Nineteenth century particularly after the end of the cold war, Globalization has become the catchphrase that attracts everybody. However Globalization is a complex concept to be defined, there are many different definitions of Globalization. According to Thomas Friedman in his book The Lexus and the Olive Tree, he defined Globalization in terms of PARADIGM SHIFTS as the follow: “ it is the inevitable integration of markets, nation-states and technologies to a degree never witnessed before – in a way that is enabling individuals, corporations and nation-states to reach around the world farther, faster, deeper and cheaper than ever before and in a way that is enabling the world to reach into individuals, corporations and nation-states farther, faster, and deeper, cheaper than ever before.” Moreover, Globalization is represented in two eras. First, which started in the mid of the nineteenth century and ended with the start of the World War I (WWI), and the Second era began in the aftereffects of the World War II (WWII) and still continuous until today. The Two eras of Globalization were described by increased cooperation and integration in trade, smooth capital flows and free movement of labors. In another words, under the umbrella of Globalization, any product that has been manufactured in somewhere in the globe could easily finds its way into the market in another part of the world. In addition, since this process became the

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