Thirty years ago, the world was concerned about the prospects of the burgeoning world economy and the ability of corporate bodies to act responsibly. In the foregoing, the world observed the necessity to have measures in place to regulate organizations at an international scale. Today, the concerns in the world have shifted as the rate of international trade has decreased tremendously. In fact, the volume of international trade fell by the largest margin in the years following the 2008 financial crisis. The crisis in itself resulted in a significant shrink in the volume of international trade with immediate recovery in the subsequent years. Today, any chances of the global trade hitting such levels as the ones attained in 2007 are treated with skepticism. The rise in trade had increased from a 1980 figure of $500 billion to a 2007 figure of $11.8 trillion (James & James, 2009, p. 38). In the three decades period immediately prior to the financial crash, international trade grew at rates higher than the world economy. In contrast, the period after 2011 has recorded significantly slower growth in international trade. In essence, therefore, the world is witnessing a post-peak period of globalization.
The current globalization is not the first to peak and eventually fall in world’s history. The first one started immediately after the end of the Civil war in the US in 1865 and resulted in free trade and unhindered flow of capital across the globe. During this time of peak globalization, the world wallowed in similar thoughts of an unlimited peak in international trade. In fact, the thoughts of an end to the concept of economic globalization then appeared to be inexorable and inevitable. Leaders prepared their followers for an ever-increasing interconnectedness of the world in which competition would be encouraged. However, the first era of globalization came to a sudden halt with the onset of World War I (Weber & Pickering, 2011, p. 68). Eventually, international markets stalled and growth in international trade shrank to its lowest. Today, the world is witnessing similar trends, albeit in the absence of war. Although the current shrink in international growth is not characterized by a world war, it sure depicts the signs of a collapsing globalization. It is likely therefore that the peak of globalization was observed in 2007 and that the current gains in international trade are only but kicks of a dying horse.
Despite the signs witnessed in recent times, the answer to the question of globalization’s peak is not straightforward. The revolution that has spurred the process of globalization for the past three decades is sure to continue in the foreseeable future. Aspects of globalization such as cheaper and effective communication are sure to continue. The exchange of scientific knowledge, information and talent are also bound to increase thus improving corporate operations at the international arena. However, the continuity of these features is likely to be dimmed by the emergence of new barriers sparked by the evidence of globalization having attained its peak (Curtis, 2009, p. 429). Over the past few years, governments have relaxed in their bid to have efficient rules that guarantee the institutional foundations of globalization. In the United States, for instance, there is concern that the citizens are losing jobs to the Chinese leading to suggestions against globalization. Even if globalization has not already peaked, the signs being witnessed indicate the unfolding of events in the future. Although globalization may continue, it will only exist in the form of internationalization through cross-border exchange of resources (Abdel, 2007, p. 103).
The inefficiency of international institutions in c
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