Labels

10 Things (20) Abstract (43) Africa (51) Arab Revolutions (26) Books (18) Business (139) China (83) Communism (33) Corruption (32) Democracy (84) Economics (161) Education (24) Entertainment (39) Europe (75) Far East (22) History (27) India (211) Indian Economy (94) Infographic (176) International (21) Israel (17) Management (27) MBA (40) Middle East (54) Pakistan (40) Politics (184) Readings (200) Religion (80) Science (39) Social Issues (139) Sport (33) Technology (113) Terrorism (93) Test Prep (52) The Explainer (65) Thought (22) U.S. (129) Video (31)

Monday, September 23, 2013

When did globalisation start?

When did globalisation start? The Economist tries to answer this important question. Here's an exceprt:

Early economists would certainly have been familiar with the general concept that markets and people around the world were becoming more integrated over time. Although Adam Smith himself never used the word, globalisation is a key theme in the Wealth of Nations. His description of economic development has as its underlying principle the integration of markets over time. As the division of labour enables output to expand, the search for specialisation expands trade, and gradually, brings communities from disparate parts of the world together. The trend is nearly as old as civilisation. Primitive divisions of labour, between “hunters” and “shepherds”, grew as villages and trading networks expanded to include wider specialisations. Eventually armourers to craft bows and arrows, carpenters to build houses, and seamstress to make clothing all appeared as specialist artisans, trading their wares for food produced by the hunters and shepherds. As villages, towns, countries and continents started trading goods that they were efficient at making for ones they were not, markets became more integrated, as specialisation and trade increased. This process that Smith describes starts to sound rather like “globalisation”, even if it was more limited in geographical area than what most people think of the term today. (End of excerpt)

Read the complete piece.

No comments: