The paper "Difference between the Current Era of Globalization with the First Age of Globalization" is a perfect example of business coursework. Globalization refers to a process of integration and interaction among people, governments, and companies of different countries. It is driven by investment and international trade and aided by information technology (Beck, 2002). Steger (2010) stated that globalization emerged out of liberalism and enlightenment; he argued that both liberalism and enlightenment were aimed at the construction of an unrestricted global arena so as to attain universal market and democracy.
Globalization also refers to the collapse of borders between nations in terms of politics, trade, capital, education, and culture. It is a process of making the world appears to be one through the development of communication and transportation technology such as the internet, television, air transport, and television. The word Globalization consists of a broad range of categories which include technology and migration which are part of the elements that differentiate a countries lifestyle and culture. However, in spite of the different cultures and unique set up of the different countries, globalization has come to link them up as a meshed object or equipment, making them integrated in one way or the other (Schaeffer, 2011).
Globalization is further broken down into five social elements which are biological, socio-cultural, technological, political and economic. This report will compare the current era of globalization with the first age of globalization as well as the advantages and disadvantages of globalization. Difference between the current era of globalization with the first age of globalization Globalization is not new. For 1000’ s of years, people and later companies have been selling to and buying from each other at a huge distance.
However, technology and policy developments in the past few years have increased investment, cross-border trade, and migration so large that many people believe that the world has entered a qualitatively new phase in its economic development. According to Thomas Friedman, the difference between the earlier and current wave of globalization is that today’ s globalization is “ cheaper, further, deeper and faster. ” The current wave of globalization has been driven by technology and policies. Policies have opened economies domestically and internationally. In the last few years, many governments have adopted a free-market system which has created new opportunities for investment and international trade and increased their own productive potential.
Moreover, governments have established international agreement to promote trade in services, goods and investment and have negotiated dramatic reductions in barriers to commerce (LCC, 2010). Advances in information technology have dramatically transformed economic life by equipping all sorts of individual economic actors with valuable new tools for identifying and pursuing economic opportunities including faster and more informed analyses of economic trends around the world, easy transfers of assets, and collaboration with far-flung partners.
Technology has also contributed immensely to the current growth of globalization. Communication which is essential during trade negotiations has improved the free flow of information even for those countries that could not be accessed easily in the earlier days. Engardio (2007) commented that even the incommunicado nations have now established telecommunication that can only be referred to as the state of the art whose aim is to improve the quality of foreign investment. The latest developments can be traced to the installation of fiber optic cables, wireless transmission systems and digital switches in Beijing and Budapest has been the way forward even for other nations.
Other forms that have formed a platform for quality communication are video conferencing, digital mobile phones and electronic data interchange which have spread to major parts of Eastern Europe and Asia. The developing nations have embraced the latest technology as a reactor to accelerate their economic development. Countries like Latin America and Asia may take a decade to establish a good supply of power and develop infrastructure but with the emergence of telecommunication, the bottleneck will no longer be a disadvantage for the two nations.
Moreover, the difference between the earlier and current wave of globalization is the trade agreements between nations. In the early day, a trade agreement was developed by each country to govern how foreign trade would be carried out but they eventually resulted in tariff wars in the 1930s. They later developed a consensus to remove the arbitrary barriers that limited their freedom in regards to trade. Some of the agreements that were developed are the General Agreement on Tariffs and Trade (GATT), the North American Free Trade Agreement and the European Community.
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