Professional Documents
Culture Documents
Learning Outcomes
At the end of this lesson, you should be able to:
a. Define economic globalization;
b. Identify the actions that facilitate economic
globalization;
c. Narrate a short history of global market
integration in the 20th century; and
d. Articulate your stance on global economic
integration.
The International Monetary Fund
(IMF)regards economic globalization as a
historical process representing the result of
human innovation and technological
progress. It is characterized by the
increasing integration of economies around
the world through the movement of goods,
services, and capital across borders. These
changes are the products of people,
organizations, institutions, and technologies.
International Trading Systems
1. Silk Route.
The oldest known international trade route
was the Silk Road- a network of pathways in
the ancient world that spanned from China to
what is now the Middle East and to Europe.
Tradersused the Silk road regularly from
130 BCE when the Chinese Han dynasty
opened trade to the West until 1453 BCE
when the Ottoman Empire closed it.
2. Galleon Trade’
According to historians Dennis O. Flynn and Arturo
Giraldez, the age of globalization began when “all
important populated continents began to exchange
products continuously both with each other
directly and indirectly via other continents-and in
values sufficient to generate crucial impacts on all
trading partners.
Todefend their products from competitors who
sold goods more cheaply, these regimes (
mainly monarchies) imposed high tariffs,
forbade colonies to trade with other nations,
restricted trade routes, and subsidized its
exports. Mercantilism was thus also a system of
global trade with multiple restrictions.
3. Gold Standard