The First Industrialized Countries

The first industrialized countries

Introduction

The origin of the first globalization is given thanks to the transmission of industrialization. The first direct consequence is an increase in competition, as well as the search for new markets. It is about all means of being more competitive. There is an international specialization or "International Labor Division". This international division is not equitable, since industrialized countries specialize in the manufactured sector while the rest of the countries export raw materials and breaths. The most developed countries export capital in the form of direct investment and labor. 

Developing

On the other hand, non -industrialized countries exported mainly raw materials and imported manufactured products. The key to understanding this globalization occurs in global trade, this is the economic item that grows most, about 4% per year between 1870-1914. Countries depended more and more on exchanges with the outside (interdependence). The purchasing capacity of the population grew thanks to the increase in international exchanges. New means of commercial and financial organization were also developed. 

The world trade center is located in Europe and specifically Britain (large merchant fleet, near 50% of the world fleet). Most of the products are raw materials and food while about a third of the products are industrial. This revolution was carried out thanks to transportation innovations, specifically thanks to the railroad and especially new steamboats with steel helmet.

It is worth noting the importance of the Suez channel, since it considerably reduced the time and cost of sea transport.

Allowing a much faster sea route between the East and West. On the other hand, the telegraph is high. During the second half of the nineteenth and early twentieth century, a stage of "perfect capitalism" was developed in which at least all countries freely traded with each.

And in which the State did not intervene in the economy. The reality was that of a much more complex process. On the one hand, there was England to which there was a free market. However, the countries of the second industrialization (United States, Germany) served as protectionist policies to try to protect new companies before they begin to compete with existing greats. In addition, we must highlight the crisis of the last decades of the nineteenth century which forced the states to shield their economies.

During this period there was a great human and financial capital movement. Immigrations multiplied to 100 million (7% of the world population) in just 100 years (between 1820 and 1920). These focused mainly on the United States, which collected about 50% of migrants. Most of these migrations were in search of new job opportunities. These were facilitated by the transport revolution. Most migrants left Europe. Trends and stages are clear. 

In the first one he was an average qualified worker and small and medium entrepreneurs in search of Media. In the second stage (1880) they were little qualified workers in search of a better life, since the crisis had fallen strongly to Europe. On the other hand, in terms of capital movements, as reflected in the map, England was the largest investor followed by France. English investments focused mainly on their colonies and the United States. For his part, France invested in the European railway lines. 

The United States themselves began to invest in the construction of their own railway lines and adjacent countries (Mexico and Canada). Direct investment and constant search for new markets was one of the expansion roads of the second industrial revolution. The investments were mostly aimed at investments in portfolio, large infrastructure works, public services or mining farms. In receiving countries (which had weak governments) despite the fact that these investments promoted their basic infrastructure.

They began to suffer a great agency with the outside, as well as accumulate a great public debt. As we can see, this first globalization benefit to certain countries to the detriment of others. Finally, we must highlight the support on which this first globalization was developed. Although it was thought that it was the cause of development, the gold standard was a consequence of this. 

conclusion

In conclusion, this allowed to facilitate financial and commercial transactions, as well as ensure the stability of exchange rates and maintain the monetary stability of the countries. The great beneficiary of this system was the United Kingdom, since it supported the largest gold reserve. The system worked well, since the countries were aware of the rules of this. On the other hand, he was also a transmitter of crises worldwide, caused dependence on the leadership of England and has deflationist tendencies.