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Globalisation and Fragmentation of the Global Economy
Globalisation has grown throughout humanity’s economic history over the last 300 years, and the global economy has experienced cycles of fragmentation.
When discussing globalisation, it is about the interconnectedness of nation-states’ economies with other nation-states around the globe.
This includes the transfer of labour and the sharing of new technologies, as well as international trade, which enables nations to begin the process of specialisation.
Specialisation makes goods and services cheaper and quickens the pace of technological advancement.
From the end of World War II in 1945 until the present, we have lived in a hyper-globalised world.
Humanity has advanced quickly in the last 80 years thanks to the ability of nations to specialise, which has helped to advance technological advancement.
In the old economic systems, before the end of the Second World War, nation-states were jacks of all trade, which meant their manufacturing and technological development had to all be in-house within respective nations or territories.
The old imperial powers of France, Germany, and the British expanded to the places they had conquered and markets they had captured, which meant trading primarily within their respective empires.
