Question

What is the history and development of globalization?

Answer 1

Globalization is the interaction between different parts of location and make them interdependence and integration in term of economies, societies and cultures. Tom G. Palmer of the Cato Institute defines globalization as “the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result”. The result of globalization will reduce the trade barrier for business to enter the new market and this will increase the economic transaction and business. the existing international body institution such as World Trade Organization (WTO), European Union, Asian Free Trade Area plays the big role in encourage the global activity.

The history of globalization is still in subject or issue on going debate, there no correct in absolute in story of when the first of process of globalization. But civilization are being record, we can know the process of the starting point on globalization by referring and analyzing the history of civilization. The example of early civilization that make initial stage of globalization is Roman empire, the Parthian empire, and Han Dynasty.

Initial Stage of Globalization

The development of Silk Road bring is a important history that create the globalization process at that time. The trading between Roman Empire, the Parthian empire, and Han Dynasty have made the creation of Silk Road.

Another thing that give a important in initial stage of globalization in during the Islamic Golden Age. The Muslim traders and explorers bring a knowledge and technology, crops, and trade to the old world. Moreover, the expansions of Islam make Arab language being learn by other culture and to fulfill the hajj in created the cosmopolitan of culture.

Modern Globalization

The major starting for globalization in this new era is after World War 2 when the country leader start to interdependent with another and they want to avoid the possibility of future war. The creation of Bretton Woods Agrement has give a significant effect toward globalization. This agreement has result the creation of the International Monetary Fund which now becomes the World Bank, International Bank for Reconstruction and development, and International Trade Organization (ITO) that create the General Agreement on Tariff and Trade (GATT) then becoming World Trade Organization (WTO). This factor is the reason for current globalization, low tariff and barriers provide by WTO and other trade organization, the economic freedom after the dissolve of Soviet Union and faster transportation and easy to communicate developed more globalization process.