History of Globalization

History of Globalization

The term of ‘Globalization’ was introduced by Pro. Theodore Levitt. The historical backround of globalization can be discussed on three stages.

Archaic Globalization

Andre Gunder Frank argued that a form of globalization has been in existence since the rise of trade links between Sumer and Indus valley civilization in the third millennium BC (BCE). An early form of globalized economics and culture, known as Archaic globalization existed during the Hellenistic Age. An early form of globalization in the trade link between the Roman Empire, Parthian Empire and the Han Dynasty made the commercial links between these powers inspired the development of the Silk Road.

The Islamic Age was also an important early stage of globalization. The advent of the Mongol Empire, though destabilizing to the commercial centers of the Middle East and China, greatly facilitated travel along the Silk Road. These Pre-modern phase of global exchange are sometimes known as archaic globalization. 

Proto Globalization

The next phase is known as proto - globalization. It was charterized by the rise of maritime European empires, in the 16th and 17th centuries, first the Portugues and Spanish Empires, and Dutch and British empires. In the 17th century, globalization became private business phenomenon like British East India Company[founded in 1600] described as the first multinational company, and the first Dutch East India Company [found in 1602] were established.

Modern Globalization

The 19th century witnessed the advent of globalization approaching its modern form. Between the globalization in the 19th and in he 20th century there are significant differences. There are two main points one is the global trade in his centuries as well as the capital, investment and the economy and another one is the global trade in the 20th century 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.