Globalization: Changing the World’s Economy Globalization is the process by which the interaction of economic, political, cultural, and environmental systems across geographical borders are accepted as part of a more integrated and interdependent world economy. Some people view it as an exchange of people, goods, ideas, capital, and cultures across national borders linked by the development of modern technologies, such as the Internet (Globalization, 2007). In the last few decades, the advantages of globalization have been debate because some argue that it is good for the world economy, while others argue that it can cause catastrophic economic and environmental consequences. Although globalization has some negative effects, such as increasing income inequality between the poor and the rich, its positive effects outweigh the costs. Therefore, globalization improves countries’ economic growth, people’s standard of living, and information technology.
Many people believe that the concept of globalization was caused by the liberation of markets after the post-war monetary agreements, such as the Breton Woods System. However, globalization has already been in practice for centuries all over the world. These agreements accelerated globalization because they helped to open new markets in different countries, and reduced trade barriers through the General Agreement on Tariffs and Trade (GATT). Some archeologists found evidence of trade between the Roman Empire and Sri Lanka, and some coastal areas of Vietnam (James, 2010). Also, in China, international trade was practiced during the Western Han dynasty (206 BCE - 9CE) with the establishment of the “Silk Road.” Their ships reached as far as the African coast. Moreover, during the sixteenth and seventeenth centuries, commerce and cultural encounters among different countries were common (What is Globalization? 2014).