Globalization and Trade Liberalization

Decent Essays

Third wave of globalization started in the 1980s; where the world now stands at the start of a third wave of globalisation. The world increasingly connected from the first wave and second waves there is advances in technology especially in information and telecommunication technology (symbolized by the internet), and the falling transports and communication cost . The third wave of globalization starts to rise again after the decline of the communist system and the victory of democracy, free market and economic liberalization. This waves lead to many developing countries get into the global markets, and some developing countries facing the declining of income and rising of poverty and the international migration and capital movements, which were insignificant during second wave globalization, have become more extensive. Spain is the country that has economic status as a developed country and it is much globalized and has a high status in the world’s wealth. In the mid-1980s, Spain’s per capita gross domestic product ranked low among the industrial countries. In Spain, trade plays an important role in Spain’s economy, with exports (of goods and services) plus imports shooting up from 27 percent of GDP in 1970 to 62 percent in 2000 . Moreover, Spain’s foreign direct investment has shot up in the last decade from less than 1 percent of GDP to nearly 10 percent, and inward FDI has risen from just under 3 percent of GDP to nearly 7 percent. From the net importer of investment

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