The first great expansion of European capitalism took place in the 16th century, following the first circumnavigation of the earth in 1519 to 1521.
There was a big expansion in world trade and investment in the late nineteenth century. This was brought to a halt by the First World War and the bout of anti-free trade protectionism that led to the Great Depression in 1930. Some see this period as an interruption to the process of globalization commenced in the late 19th century.
A sense that the world was united was generated by the establishment of the International Date Line and world time zones, together with the near global adoption of the Gregorian calendar between 1875 and 1925. During that period, international standards were also agreed for telegraphy and signaling.
The end of the Second World War brought another great expansion of capitalism with the development of multinational companies interested in producing and selling in the domestic markets of nations around the world. The emancipation of colonies created a new world order. Air travel and the development of international communications enhanced the progress of international business.
The fall of the Berlin Wall and the collapse of the Soviet Union ended the cold war between the forces of capitalism and socialism with capitalism triumphant. The development of the internet made possible the organisation of business on a global scale with greater facility than ever before.
What are the costs and the benefits of free trade?.
Pro globalization.
International trade and investment have been the engines of world growth over the past 50 years. The tones of goods traded around the world have grown by 16 times since 1950, reflecting the lowering of tariff barriers. The growth of trade in services is even greater.
The benefits of that growth have been shared. The countries that are getting poorer are those that are not open to world trade, notably many nations in Africa.
