The Implications of Integration for Globalization

Interestingly, there is no consensus on the definition for globalization, but it is recognized as being largely dependent on context and discipline. Most economists, however, see globalization as incorporating increased openness of national economies to trade, foreign investment and financial flows. The first article in this volume by Artis and Okubo identifies two waves of globalization, the first taking place between 1870 and 1914 and the second between 1960 and 2001. They make the important point that in spite of the common feature of greater economic openness, the trade patterns that emerge may vary significantly across episodes. Openness may be limited to goods markets or include financial and factor markets, and it may or may not be accompanied by other forms of integration, including greater cooperation in non-trade policies