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Globalization

Globalization describes the changes in societies and the world economy that result from dramatically increased international trade and cultural exchange. It describes the increase of trade and investing due to the falling of barriers and the interdependence of countries. In specifically economic contexts, the term refers almost exclusively to the effects of trade, particularly trade liberalization or free trade, Theodore Levitt is usually credited with globalization's first use in an economic context. rom 1910 to 1950, a series of political and economic upheavals dramatically reduced the volume and importance of international trade. But these trends reversed starting with WWI and continuing through WWII, when the Bretton Woods institutions were created (i.e. the IMF and the World Bank). After World War II, international trade dramatically expanded, fostered by international economic institutions and rebuilding programs. From the 1970s, the effects of this trade became increasingly visible in terms of benefits and disruptive effects. It is useful to distinguish economic, political, and cultural aspects of globalization, although all three aspects are closely intertwined. The other key aspect of globalization is changes in technology, particularly in transport and communications, which it is claimed are creating a global village. There are several definitions and all usually mention the increasing connectivity of economies and ways of life across the world. The Encyclopedia Britannica says that globalization is the "process by which the experience of everyday life is becoming standardized around the world." Globalization in the era since World War II has been driven by trade negotiation rounds such as GATT (General Agreement On Tariffs and Trade), which led to a series of agreements to remove restrictions on free trade. The Uruguay round led to a treaty to create the World Trade Organization or WTO, to mediate trade disputes. Other bilateral trade agreements,...