Globalisation: A journey of trade, innovation, and disruption
While silk was primarily traded overland, spices were exchanged extensively across the Mediterranean and the Arabian Sea. Globalisation took root during this period, and the Age of Discovery accelerated its progress, even though the phenomenon was not yet recognised as 'globalisation.' The rise of Great Britain and the First Industrial Revolution significantly increased global trade. The French constructed the Suez Canal, which connected the Mediterranean Sea to the Red Sea, opening a vital artery of trade possibilities.
The Second Industrial Revolution, also known as the Technological Revolution, introduced new means of communication and transportation that revolutionised manufacturing and commerce. This era ended in crisis with the outbreak of World War I (1914–1918), which caused millions of deaths, widespread destruction, trade disruptions, and closed borders. The post-war years saw some global connections, but the Great Depression led to a breakdown of the worldwide economy. After World War II (1939–1945), the world entered a new era marked by the Cold War, with the Iron Curtain dividing the globe between the two superpowers of the time: the United States and the Soviet Union.
A monumental development occurred in 1989: the collapse of the Iron Curtain, which significantly altered global power dynamics. The world began to move from a unipolar to a more multipolar landscape. The formation of the World Trade Organisation further advanced globalisation through numerous trade agreements that spanned borders. The third industrial revolution gave new meaning to the word connectivity. The advent of the computer and the Internet removed barriers to communication and connection across borders, opening doors to the possibilities of trade, work, and economic growth. This led to the unprecedented growth of global connectivity.
The advent of the Internet led to a significant surge in globalisation, exponentially expanding international trade and benefiting a substantial portion of the world's population. Rapid technological developments and innovations ushered in the Fourth Industrial Revolution, bringing a wealth of technologies, including artificial intelligence, robotics, the Internet of Things, and others.
These developments and advances in transportation and communication have ensured the world is now deeply interconnected through globalisation and trade. At the peak of globalisation, the Covid-19 pandemic struck, exposing vulnerabilities to global supply chains and causing a sudden halt in international trade. Even in 2025, post-Covid-19, the world stands at the crossroads of escalating war, globalisation, protectionism, trade wars, immigration challenges, climate crises, and automation.
In conclusion, globalisation is a dynamic phenomenon shaped by the unpredictable forces of the world, including pandemics, trade wars, conflict, technological advancements, innovation, and industrial ambition.
From the Silk Road to the era of artificial intelligence, it has unlocked enumerable possibilities and exposed vulnerabilities. As the world faces unforeseen challenges—ranging from pandemics and trade wars to climate change, technological disruption, geopolitical tensions, and health crises—it is clear that globalisation is neither inherently good nor bad. Instead, it is a two-edged sword that must be used with wisdom and foresight. Global leaders and communities must collaborate to ensure that the benefits of globalization are equitably and sustainably shared worldwide and that the risks are mitigated for future generations.
Dr Mythili Kolluru
The writer is an assistant professor at the marketing and management department of the College of Banking and Financial Studies in Muscat.
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