Globalization is both an active process of corporate expansion across borders and a structure of cross-border facilities and economic linkages that has been steadily growing and changing as the process gathers steam. "This process sows the seed of its own destruction, as it serves a small global minority, damages the majority, breeds financial instability, and exacerbates the environmental crisis. Its destructive tendencies are likely to produce an explosion if the process is not contained and democracy is not rehabilitated" (E, Herman. http://www.globalpolicy.org/globaliz/define/hermantk.htm). The debate over the threat of globalization is increasingly controversial and has many opposing it. It is evident that in some cases, globalization has led to an increase in poverty and a decline in the productivity and investment growth of countries, yet in countries such as China, India, Mexico and Vietnam this does not seem to be the case, with increases in wages and production and a decline in poverty. "Both Government and Business contribute to economic development, depending on each other to generate strong economic performance" (Cowan. 2002, p89). This has the potential to become a messy process that requires adjustment but the evidence shows integration offers powerful net benefits for developing countries. This paper will discuss the history of globalization, globalization will be defined and the effects had on the world's economy will be analyzed. The influence on, and the regulation of globalization by international institutions such as the World Bank and World Trade Organization will also be addressed shedding light on how more recent forms of globalization arose and how it has been managed.
Globalization has come in waves, with the first great modern wave in the 1870-1910 period. The first wave of globalization came to an end with World War I and the great depression. The second wave from 1950 to 1980, saw unprecedented integration among rich countries, while most developing countries chose to restrict their involvement in foreign trade and investment.