Waves of globalisation
The Economist seems to find novelty in the idea that globalization is not all it's cracked up to be. It´s believed that international organisations are more useless in our days. On the other hand, states use their powers to shape international organisations to better cope with problems with increasingly transnational dimensions like pollution and food safety. Well they still make the rules. Today, their rules are shifting and they are key players in the development of emerging nations. But tomorrow, global companies will have to compete with the homegrown companies and brands that are being born and bred in today’s emerging nations. Emerging markets are becoming emerging powers.
Globalisation and competitiveness thus evolve in waves. Each successive wave has its own business logic and its own mode of operation. And each wave eventually fades away to be replaced by another.
There were three waves:
Globalisation and competitiveness thus evolve in waves. Each successive wave has its own business logic and its own mode of operation. And each wave eventually fades away to be replaced by another.
There were three waves:
FIRST WAVE
It was stimulated by advances in transport and reductions in trade barriers. Opened up the possibility of using abundant land in production of an intensive primmary commodities. Capital was invested in manufacturing.
SECOND WAVE
Globalisation focused on integration between developed countries and restored trade relations through a series of multilateral trade liberalizations.
THIRD WAVE
It was spurred by a combination of advances in transport and communications technologies and by large developing countries who sought foreign investment by opening up to international trade.