Globalization has affected people and communities across the globe and it has become a controversial issue that is widely debated in the public sphere.Depending on the interpretation of this phenomena, some historians argue that at least some form of globalization has been in existence since the trading between Sumer and the Indus Valley Civilization during the Bronze Age in the 3rd millennium BC.
If we adopt a stricter definition of the concept, globalization started in the 15th century when Portugal and Castile sent the first exploratory voyages to the Cape of Good Hope and the Americas.
The history of globalization can thus be divided into three periods: Today, it has become a buzzword with mostly positive connotations such as the increase in the exchange of knowledge, trade, and capital around the globe that are driven by technological innovations such as shipping containers and more recently the internet.
But not everyone agrees with the positive impact of globalization.
It has received harsh criticism, in particular from those who oppose the free market economy.
The effect of trade is mainly based on its ability to strengthen interdependence between different countries.
In today’s world, it has become almost impossible to be completely self-sufficient.
Because countries have always been interdependent, we cannot reverse the process of globalization. When we talk about globalization, many people don’t seem to realize is that it’s not actually a man-made phenomenon but rather we evolved into these conditions.
Because countries have always been interdependent, we cannot reverse the process of globalization.
If companies can improve the way they produce a good or service by outsourcing their processes or by buying from a supplier that offers a discount, they can then lower their prices which increases demand and affordability.
And even if some companies choose not to lower prices, they can reallocate these additional profits to increasing their employee’s wages or investing in expansion.