Baldwin and Martin (two waves) Flashcards
What is the historical period of the two waves of globalisation?
1870-1914 and 1960-today
Main similarities between the two waves?
Similar Trade-to-GDP and capital flows-to-GDP ratio.
Main differences between the two waves?
Today we see the death of distance.
Different initial conditions and industrialisation patterns.
Which phenomenon did the two waves contributed towards?
The phenomenon of twin peaks and convergence clubs: rich nations getting richer and poor ones getting poorer
What is the big difference in terms of nature of trade between the two waves?
Today it is mainly among rich nations and its mainly intra-industry trade in similar products.
What is the big difference in terms of FDI and multinationals?
Before mostly in primary products, today mostly in services.
