Mitchner - Today: Globalization in historical perspective...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Globalization in Historical Perspective Kris Mitchener Global Fellow, UCLA Associate Professor, Santa Clara University Research Associate, NBER Today: Globalization in historical perspective • What is globalization? • How do we measure it? • When was the first era of globalization? • How does globalization affect standards of living? • How does the earlier era of globalization compare to today? Economists define globalization as: Increasingly close international integration of markets for goods, services, and factors of production • What are factors of production? – Labor and capital Why this definition of globalization? • Measurable • Definition allows us to make comparisons – Across countries – Over time • …our task for today When did globalization begin? • From a millennial perspective, globalization is quite new • Trade and flows of capital and labor were quite small until last few centuries • Markets for goods and factors of production were not integrated • Big growth and integration only came during 19 th century •WHY ? Trade before the 19 th Century • Limited to a small range of goods…in a few markets worldwide – Sugar, spices, tea, precious metals – Goods with high value-bulk ratios –Why?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 What changes in the 19 th century to stimulate trade? 1. Transportation Costs decline – Technological innovations canals, steamship, What changes in the 19 th century to stimulate trade? 1. Transportation Costs decline – Technological innovations steamship, railways, etc. 2. Tariff rates declined, although not eliminated altogether – Fall from average of 15% to 10%
Background image of page 2
3 What do these changes lead to? 1. Large growth in volume of trade
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/06/2010 for the course GLOBAL STU global stu taught by Professor T during the Fall '07 term at UCLA.

Page1 / 10

Mitchner - Today: Globalization in historical perspective...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online