“Globalization” is a term that has been thrown around a lot lately, especially in
light of President Donald Trump’s opposition to trade deals and the UK’s decision to
leave the European Union.
In the simplest terms, a globalized economy is the circulation of goods across many different
countries.
At your local grocery store, you can purchase tea from India, mangoes from Brazil, figs
from Turkey or coffee from Ethiopia all in the same place.
Manufactured goods, like a t-shirt, have likely already charted multiple oceans before making
it to retail shelves.
That’s all thanks to globalization.
And it’s great system for the consumer.
It means low prices, greater variety, and an all-around higher standard of living.
To understand how globalization works, many economists still point to one of humanity’s
first endeavors in international trade: the silk road.
The Silk Road wasn’t the beginning of trade, but it did expand it exponentially.
In the centuries leading up to the formation of the Silk Road, civilizations remained largely
isolated, due to geographical boundaries and fear of the unknown.
However around the second century BC, China and central Asia began to share goods and
ideas through nomadic tribes.
This eventually expanded into a complex network of land and sea trade routes, stretching from
the Mediterranean, to India, and even to southeast Asia.
A slew of different goods were transported along the Silk Road, but the most common was,
unsurprisingly, silk.
This material had a huge effect on any society that came in contact with it.
The Chinese had a complete monopoly on silk, as they were the only people who knew how
to make it.
So when the material was introduced to Roman elite, who loved it for its lightness and
air of promiscuity, demand skyrocketed.
As the market grew, more and more working class Chinese moved into silk production.
Like modern globalization, the Silk Road also ushered in a merging of languages, religions
and cultures.
Along with goods like spices and textiles, merchants from India brought Buddhism to China
and Japan, where it remains a dominant religion today.
Nomads from Arabia brought Islam to South Asia, paving the way for the religion’s
influence in Malaysia, Indonesia and other modern states.
In fact, many historians argue that the greatest impact of the Silk Road was not the spread
of products but the spread of ideas.
The Silk Road was hugely beneficial for early civilizations.
It meant greater overall wealth, rapid advancements in art and technology and increasing diplomacy
among early world powers.
However today, some argue that globalization has gone too far.
An interconnected economy often means a loss of cultural distinctiveness, along with traditions
and even entire languages.
A great example of this is currency.
For ease of trade and commerce, much of Europe has abandoned their national denominations
in favor of the Euro.
Many countries have done the same to adopt the US dollar.
Globalization has already led to the death of thousands of languages, leading some experts
to predict that by the year 2100, only half of modern dialects will still exist.
The Silk Road left an immutable impact, affecting civilizations that weren't even directly connected
to it.
Merchants who charted the route stopped for goods in villages, which eventually became
huge cities, like Venice, Istanbul and Aleppo.
Faiths like Christianity, Islam and Buddhism saw a much greater reach, eventually becoming
three of the world’s largest religions.
Whether or not you agree that globalization is good, its influence in the daily lives
of every human cannot be understated.
Today, China is looking to connect Asia and Europe through a “new silk road”.
To find out more about the initiative, check out this video.
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