Globalization and the world economy

Name: Professor’s name: Course: Date: Globalization and the World Economy Globalization is considered as an emerging trend in the new world order. The term globalization can be defined as the ever increasing communication and interaction between people of different origins across the globe. As we saw in the class readings, globalization is inseparable from the happenings in the world economy. Thanks to globalization, markets are no longer segmented based on continental or domestic boundaries. Goods, services, labor, and capital, can now move freely from one country to another due to globalization. However, globalization is not a very new concept in the world considering that there was a movement of labor even in the pre-industrialization period. What differs is how people of different ages have reacted to the concept of globalization. Many have embraced the idea of globalization while citing the very many benefits it has brought but there are also a few who discredit the importance of globalization. In this regard, this paper analyses the impact of globalization on the world economy in both the pre-industrialization and post-industrialization periods. According to Shangquan, the quick growth of globalization in the post-industrialization period is due to the fast growth of the field of science and technologies which have enabled cross-border specialization and division of labor (1). Consequently, development of technologies and science has immensely lowered the cost of doing business globally. The scholar says the cost of transporting goods from one continent to another is currently half of what it used to be about 100 years ago (2). The prices of goods and