Globalization And Its Effects On The Global Economy

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Globalization and Its Effects On the Global Economy In the past 100 years, the world has shifted enormously. Once, a world that only communicated when one nation was trying to take control of another, is now connected more than ever. This transformation began with the Industrial Revolution in a period from around 1760 to 1840. Thinking back to that time, we can easily think of noticeable differences between how the world was and how it is today. The United States was a small, developing country, still trying to overcome the effects of a costly revolution. Across the ocean, once the United States’ major rival, Great Britain, was still the greatest power in the world. And around the world, China and Japan were nowhere near the economic…show more content…
Their factories, however, relied on access to cheap natural resources and raw materials, which they receive from Asia, Africa and Latin America in exchange for the finished product. Burst of technological creativity that made this trade possible includes the screw propeller, steel hulls, and the compound engine. Combining with those inventions was the power of steam, such as the steamboat, steam engine and steam powered train, to connect the world by making transportation more efficient and feasible. And by transportation becoming more feasible, people were able to transport their goods from one place to the next much faster, and in turn, made trade quicker between nations. Because of the innovations of the Industrial Revolution, technology progressed long after the end of the era and the world began to metamorphose into a new global era. In this new global era our global economy has improved, because countries are able to focus solely on producing certain products, in a method called specialization, and their economy’s are now more connected than ever through globalization. Which in turn causes stock market fluctuations in one country to affect the economy of another country clear across the globe. Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process
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