Globalization Is Not A New Phenomenon

917 WordsNov 5, 20154 Pages
Globalisation is not a new phenomenon but continuation of development from the 15th century. It began to flourish due to a boom in global trading and introduction of direct foreign investment post World War 2. Since the 1970s globalisation has accelerated becoming a highly integrated system with the availability of technology, investment liberalisation and increased economic power of transnational corporations. So is this a clear indicator of national economies becoming interdependent or “the intensification of worldwide social relations” as described by Anthony Giddens (1990: 64). National economic inter-reliance first occurred through the trade of raw materials, goods and services from one country to another. Most of the global economic expansion in the 19th and early 20th century took this form, especially in Western Europe and the United States of America. However globalisation has become more complex due to the emergence of new economies from the periphery (Russia, Eastern Europe and China are all examples of this). China re-emerged their economy into the global market in 1979 with the implementation of a socialist market economy. This both reduced barriers and allowed private investment which lead to increased production and distribution. By 2005 China’s economy had grown so much that the “Chinese private sector accounted for 70% of GDP” . This thriving economy opened Asia to investors, with it now exploited as a cheap source of labour. After Europe, Asia is the
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