Question

In what ways has the world ‘shrunk’ since the 1980s and how has this transformed the nature of human civilization?（350-400words)

Answer 1

Prior to the 1980's, numerous countries remained protectionist wherein, they were closed or opposed to trading with other countries. They believed that increasing exports and reducing imports would help them become profitable. The ones, that freely traded in the market were subject to high tariffs which are taxes paid in the importing country. The end result was, that human interaction between people was limited, and all economic activities such as demand and supply were mostly restricted to the local economy only.

This concept began to change in the 1980's. Countries realized that they were all one and that without collaboration with one another, the world economy would most likely fail to have any concrete results for itself.

As a result, trade barriers or restriction on trade were limited and people, capital as well as goods and services were allowed to interact with one another much easily. The end result is that the volumes of trade which happened between countries increased drastically. The world shifted from local to global in nature.

With this happening, the human civilization saw the growth of Multinational Corporations which originated in one area, produced in another, had raw material come in from another and sold its products to the entire globe. We experienced significant growth and investment, just as a result of this very transformation which has continued over the years.

The shrunk world has interconnected world economies and has largely helped in growing the economy in large numbers.

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