Liberalization, Privatization and Globalization (LPG) are much-discussed subjects among politicians, economists and businessmen. Globalization is the integration of a country with the world economy – basically a process of internationalization plus liberalization. The term 'Globalization' was introduced by Prof. Theodore Levitt.
1. History of Globalization – Three Stages
| Stage | Key Features |
|---|---|
| 1. Archaic Globalization | Andre Gunder Frank argued that globalization existed since trade links between Sumer and the Indus valley civilization in the third millennium BCE. It existed in the Hellenistic Age; trade between the Roman Empire, Parthian Empire and Han Dynasty inspired the Silk Road. The Islamic Age and the Mongol Empire (which eased travel along the Silk Road) were also early stages. |
| 2. Proto Globalization | Rise of maritime European empires in the 16th and 17th centuries – first the Portuguese and Spanish, then the Dutch and British. In the 17th century globalization became a private business phenomenon; the British East India Company is described as the first multinational company. |
| 3. Modern Globalization | Began in the 19th century. 20th-century trade shows a higher share of trade in production, growth of trade in services and the rise of production and trade by multinational firms. |