Globalización

GLOBALIZATION

1. DEFINITIONS

There are many different ways to explain what globalization means, and it can also be defined in different contexts. The United Nations says that “when used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labour.” [1]

XavierSala I Martín describes globalization as “the free movement of five things: capital, labour, goods, technology and information”. Those countries with free movement of these five elements have thriving economies; on the other hand, countries in which these five elements do not move freely are poorer. [2]

Pascal Lamy, Director-General of the World Trade Organisation, defines globalization asa “historical stage of accelerated expansion of market capitalism, like the one experienced in the 19th century with the industrial revolution. It is a fundamental transformation is societies because of the recent technology revolution which has led to a recombining of the economic and social forces on a new territorial dimension.” [3]

Another definition is that “globalization is theintegration of economies and financial markets”. The increasingly flow of trade of goods, services and finance between countries, supported by different organisations designed to establish rules to this flow, helped the evolution of global integration. Such organisations are, for example, the International Monetary Fund, the World Bank and the World Trade Organisation. (Edwin M. Truman) [4]Globalization implies that something is increasing; therefore, one last definition of globalization needs to be made describing first the meaning of “globalism”, which is a “state of the world involving networks of interdependence of multicontinental distances. The linkages occur through flows and influences of capital and goods, information and ideas, and people and forces. Globalization anddeglobalization refer to the increase or decline if globalism.” (Robert O. Keohane and Joseph S. Nye Jr.) [5]

2. EVOLUTION AND DRIVING FORCES OF GLOBALISATION

Despite the term globalization being around for not so long, patterns of globalization can be observed since late nineteenth century. British capital first, and then North American and European moved freely, creating labouropportunities, wealth and introducing new technologies (railways, telegraph, telephone, electricity, steam power, vacuums, etc.).

The invention and application of steam power, the use of metal in shipbuilding and railway construction, and the beginning of mass production, reduced transportation costs (especially the first two). This contributed to an international trade, which rose productivityand living standards. In addition the telegraph and telephone radically changed communications within and between countries.

From the late nineteenth century until the First World War (1914), the economy of most countries grew significantly. Commerce and investments were based in gold standard; a fixed exchanged rate which allowed moving capital without the risk of variations in exchangerates. The cooperation between central banks and the leadership of the Bank of England was crucial for the success of the gold standard in industrialised countries.

The economy was very affected by the First World War, but after the great depression and the Second World War, what was left of the international economy, was completely destroyed. After the Second World War, each nationprotected their own economy, some did trade with others but most of the economic activity of a country took place inside the limits of its territory. High tariffs, quotas, controls on capital and other barriers to commerce were enforced.

Since 1970 there is a clear process of transaction from national economies to international economies, international trade revived. An economic liberalisation...