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Unformatted text preview: Compare the first and second waves of globalization. What are the differences and similarities? Are there any lessons we can learn from the past?- What is globalization? o Development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor market o Integration of economies o Movement of people, technologies o Measuring globalization Decline in wedge between domestic and global prices, export supply and import demand o Causes/Indications Falling transport costs Reduction of trade barriers Falling import prices (lack of domestic need for a country’s goods) Rising export prices (foreign need for a country’s goods) Increase in trade volumes Commodity price convergence- Degree of globalization today o Foreign workers In 1965 there was 78 million In 2005 there was 191 million But may be explained by population increases o FDI Increased from 6.5% of GDP in 1980 to 31.8% in 2006- First Wave of Globalization o Pre-1820 Pre 1500s •...
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- Fall '10
- International Trade, relative agricultural prices, economy-wide labor supply, Steamships Railroads Suez Canal