What Caused Globalization?

Readers Question: Evaluate the significance of the factors which have contributed to globalisation. You may use diagrams if you wish.

Globalization is not a new phenomena. The world economy has become increasingly interdependent for a long time. I have previously written various factors that have helped explained the rise in globalization here 

In evaluation I would make the following points.

• It is hard to precisely define globalisation there are different interpretations about what we actually mean, therefore, there are differing factors that explain it.
• Improved technology is undoubtedly very influential in helping globalisation; without technologies such as the internet and global communication it would not have been possible to witness the increased interdependence of coompanies and countries.
• Increased free trade is important. However, there are various trade barriers still in existence and this has not stopped the growth of globalisation.
• Could there be a backlash against globalisation as people look for local alternatives to multinational products? I think this is unlikely as people prefer the security of buying established brand names.

Diagrams for Globalisation

I would draw a diagram for trade creation, showing how the removal of trade barriers increases exports and imports. Also economies of scale are very important for encouraging increased specialisation of global production.