The paper "International Business - Globalization " is an outstanding example of a business essay. The world today has become a global village as economies of different countries and regions and cultures of different communities all over the world have become integrated. However, the term globalization has been widely used to refer to the linking of economies of individual nations into an international economy through such activities as technology advancement, migration of people, foreign investment, trade or business, capital flows and military missions. Globalization involves the exchange of ideas, languages, socio-cultural practices and technological advancement among other things.
Most people have acknowledged the term as the greater exchange of ideas, people, capital, goods and services, and labour as a result of international economic linkage (Milward, 2003, p. 37). This paper seeks to compare and contrast the current era of globalization with the first age of globalization. The paper will also examine the advantages and disadvantages of globalization in its current context. The First and Second Eras of Globalization The first era of globalization begun when Columbus opened trade between the old and the new world by setting sail, and lasted between 1492 and 1800s.
The first era of globalization was primarily about individual countries and their muscles. The second era of globalization lasted from 1800 to around 2000. This era was characterized by multinational companies as dynamic forces facilitating global integration. These companies went global in search of markets, as well as labor. It is believed that the industrial revolution played an essential role during this era of globalization. The influence of technology for example steamships and the engineering telegraph also played crucial roles.
The steam engines together with the railroad ensured falling costs of transportation in the first half of this era. The engineering of the telegraph in conjunction with the telephones, satellites, the PC, as well as the early versions of the world wide web was crucial in the second half of this era because they ensured the cost of telecommunications was manageable to most multinational companies (Lib. utk. edu, 2006).
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