ACKNOWLEDGEMENT

FIRST OF ALL I WANT TO

THANK MY ENGLISH AND
ECONOMICS TEACHER WHO
GAVE ME THE OPPURTUNITY
TO DO THIS PROJECT AND
THEN I WANT TO THANK MY
MOTHER AND FRIENDS WHO
HELPED ME IN COMPLETING
THIS PROJECT PROPERLY.
 INTRODUCTION
Globalization or globalisation (see spelling
differences) is the process of international
integration arising from the interchange of world
views, products, ideas, and other aspects
of culture. Advances in transportation (such as
the steam locomotive, steamship, jet engine,
and container ships) and
in telecommunications infrastructure (including the
rise of the telegraph and its modern offspring,
the Internet, and mobile phones) have been major
factors in globalization, generating
further interdependence of economic and cultural
activities. Though many scholars place the origins of
globalization in modern times, others trace its
history long before the European Age of
Discovery and voyages to the New World. Some even
trace the origins to the third millennium BC. Large-
scale globalization began in the 19th century. In the
late 19th century and early 20th century, the
connectivity of the world's economies and cultures
grew very quickly.

The term globalization is recent, only establishing its

current meaning in the 1970s. In 2000,
the International Monetary Fund (IMF) identified
four basic aspects of
globalization: trade and transactions, capital and inv
estment movements, migration and movement of
people, and the dissemination of knowledge. Further,
environmental challenges such as global warming,
cross-boundary water and air pollution,
and overfishing of the ocean are linked with
globalization. Globalisation processes affect and are
affected by business and work organization,
economics, socio-cultural resources, and the natural
environment. Academic literature commonly
subdivides globalization into three major
areas: economic globalization, cultural globalization,
and political globalization.

The term globalization is derived from the

word globalize, which refers to the emergence of an
international network of economic systems. One of
the earliest known usages of the term as a noun was
in a 1930 publication entitled Towards New
Education, where it denoted a holistic view of human
experience in education. A related term, corporate
giants, was coined by Charles Taze Russell (of
the Watch Tower Bible and Tract Society) in 1897 to
refer to the largely national trusts and other large
enterprises of the time. By the 1960s, both terms
began to be used as synonyms by economists and
other social scientists. Economist Theodore Levitt is
widely credited with coining the term in an article
entitled "Globalization of Markets", which appeared
in the MayJune 1983 issue of Harvard Business
Review. However, the term 'globalization' was in use
well before this (at least as early as 1944) and had
been used by other scholars as early as 1981. Levitt
can be credited with popularizing the term and
bringing it into the mainstream business audience in
the later half of the 1980s. Since its inception, the
concept of globalization has inspired competing
definitions and interpretations, with antecedents
dating back to the great movements of trade
and empire across Asia and the Indian Ocean from
the 15th century onwards. Due to the complexity of
the concept, research projects, articles, and
discussions often remain focused on a single aspect of
globalization.

Sociologists Martin Albrow and Elizabeth King define

globalization as "all those processes by which the
peoples of the world are incorporated into a single
world society." In The Consequences of
Modernity, Anthony Giddens writes: "Globalization
can thus be defined as the intensification of
worldwide social relations which link distant
localities in such a way that local happenings are
shaped by events occurring many miles away and
vice versa." In 1992, Roland Robertson, professor of
sociology at the University of Aberdeen, an early
writer in the field, defined globalization as "the
compression of the world and the intensification of
the consciousness of the world as a whole."
 ORIGIN OF
GLOBALISATION
The historical origins of globalization are the subject
of ongoing debate. Though several scholars situate
the origins of globalization in the modern era, others
regard it as a phenomenon with a long history. Some
authors have argued that stretching the beginning of
globalization far back in time renders the concept
wholly inoperative and useless for political analysis.

Archaic globalization
Perhaps the most extreme proponent of a deep
historical origin for globalization was Andre Gunder
Frank, an economist associated with dependency
theory. Frank argued that a form of globalization has
been in existence since the rise of trade links
between Sumer and the Indus Valley Civilization in
the third millennium BC Critics of this idea contend
that it rests upon an over-broad definition of
globalization.
Thomas L. Friedman divides the history of
globalization into three periods: Globalization 1
(14921800), Globalization 2 (18002000) and
Globalization 3 (2000present). He states that
Globalization 1 involved the globalization of
countries, Globalization 2 involved the globalization
of companies and Globalization 3 involves the
globalization of individuals.
Even as early as the Prehistoric period, the roots of
modern globalization could be found. Territorial
expansion by our ancestors to all five continents was
a critical component in establishing globalization.
The development of agriculture furthered
globalization by converting the vast majority of the
world's population into a settled lifestyle. However,
globalization failed to accelerate due to lack of long
distance interaction and technology. The
contemporary process of globalization likely
occurred around the middle of the 19th century as
increased capital and labor mobility coupled with
decreased transport costs led to a smaller world.

The 13th century world-system

An early form of globalized economics and culture,
known as archaic globalization, existed during
the Hellenistic Age, when commercialized urban
centers were focused around the axis of Greek culture
over a wide range that stretched from India to Spain,
with such cities as Alexandria, Athens, and Antioch at
its center. Trade was widespread during that period,
and it is the first time the idea of a cosmopolitan
culture (from Greek "Cosmopolis", meaning "world
city") emerged. Others have perceived an early form
of globalization in the trade links between the Roman
Empire, the Parthian Empire, and the Han Dynasty.
The increasing articulation of commercial links
between these powers inspired the development of
the Silk Road, which started in western China,
reached the boundaries of the Parthian empire, and
continued onwards towards Rome.
The Islamic Golden Age was also an important early
stage of globalization, when Jewish and Muslim
traders and explorers established a sustained
economy across the Old World resulting in
a globalization of crops, trade, knowledge and
technology. Globally significant crops such
as sugar and cotton became widely cultivated across
the Muslim world in this period, while the necessity
of learning Arabic and completing the Hajj created a
cosmopolitan culture.

Proto-globalization

The next phase is known as proto-globalization. It

was characterized by the rise of maritime European
empires, in the 16th and 17th centuries, first
the Portuguese and Spanish Empires, and later
the Dutch and British Empires. In the 17th century,
globalization became also a private business
phenomenon when chartered companies like British
East India Company (founded in 1600), often
described as the first multinational corporation, as
well as the Dutch East India Company (founded in
1602) were established.

The Age of Discovery brought a broad change in

globalization, being the first period in which Eurasia
and Africa engaged in substantial cultural, material
and biologic exchange with the New World. It began
in the late 15th century, when the two Kingdoms of
the Iberian Peninsula Portugal and Castile sent
the first exploratory voyages around the Cape of
Good Hope and to the Americas, "discovered" in 1492
by Christopher Columbus. Shortly before the turn of
the 16th century, Portuguese started
establishing trading posts (factories) from Africa to
Asia and Brazil, to deal with the trade of local
products like gold, spices and timber, introducing an
international business center under a royal
monopoly, the House of India.

Global integration continued with the European

colonization of the Americas initiating the Columbian
Exchange, the enormous widespread exchange of
plants, animals, foods, human populations
(including slaves), communicable diseases, and
culture between
the Eastern and Western hemispheres. It was one of
the most significant global events
concerning ecology, agriculture, and culture in
history. New crops that had come from the Americas
via the European seafarers in the 16th century
significantly contributed to the world's population
growth.

Modern globalization

The 19th century witnessed the advent of

globalization approaching its modern
form. Industrialization allowed cheap production of
household items using economies of scale,[citation
needed]
while rapid population growth created
sustained demand for commodities. Globalization in
this period was decisively shaped by nineteenth-
century imperialism. After the First and Second
Opium Wars, which opened up China to foreign
trade, and the completion of the British conquest of
India, the vast populations of these regions became
ready consumers of European exports. It was in this
period that areas of sub-Saharan Africa and the
Pacific islands were incorporated into the world
system. Meanwhile, the conquest of new parts of the
globe, notably sub-Saharan Africa, by Europeans
yielded valuable natural resources such
as rubber, diamonds and coal and helped fuel trade
and investment between the European imperial
powers, their colonies, and the United States.[12]

The inhabitant of London could order by telephone,

sipping his morning tea, the various products of the
whole earth, and reasonably expect their early
delivery upon his doorstep. Militarism and
imperialism of racial and cultural rivalries were little
more than the amusements of his daily newspaper.
What an extraordinary episode in the economic
progress of man was that age which came to an end
in August 1914.

Between the globalization in the 19th and in the 20th

there are significant differences. There are two main
points on which the differences can be seen. One point
is the global trade in this centuries as well as the
capital, investment and the economy.

The global trade in the 20th shows a higher share of

trade in merchant production, a growth of the trade
in services and the rise of production and trade by
multinational firms. The production of merchant
goods in the 20th century largely decreased from the
levels seen in the 19th. However, the amount of
merchant goods that were produced for the
merchandise trade grew. The trade in services also
grew more important in the 20th compared to the
19th century. The last point that distinguishes the
global trade in the 19th century compared to the
global trade in the 20th century, is the extent of
multinational cooperation. In the 20th century you
can see a "quantum leap" in multinational
cooperation compared to the 19th century. Before the
20th century began, there were just Portfolio
investment, but no trade-related or production-
relation Direct investment.