Globalization can be defined as the process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade, investment, and information technology. It is not a new concept, and has been present for thousands of years, as people and corporations have been buying and selling goods and services, along with exchanging ideas across long distances.
One of the earliest instances was the Silk Road that stretched across Central Asia, from China to Europe. The current wave of globalization has been primarily driven by global economic policies in the years after the Second World War and has opened several countries’ economies both domestically and internationally. In recent decades, several governments have adopted free market economic systems, thus opening several new opportunities for the growth of international trade and foreign investment. In addition, several governments have dramatically reduced barriers to commerce and have established international agreements that promote trade in goods, services, and investments.
As a result of the increase in foreign markets and the new opportunities that have arisen, many corporations established relations with partners for production and others business arrangements. Another driver of globalization has been technology. Information technology, in particular, has provided tools for finding and conducting economic activities. This has allowed for several individual actors to gain access to information of economic and financial trends, the access to transfer assets, and a means to communicate with others globally.
Globalization and its impacts are present in our everyday lives and present in nearly every one of daily choices, be it from the food that is consumed to the various goods and services that are purchased. It has had a rich history in our past and is becoming more prevalent as time continues to pass. Thus, the long-term implications of globalization should be further studied so the global economy can continue to grow.