Globalization becomes important today because increasing in depending to the world. Globalization can determined as increasing in trade and exchange in open economy, integrated and borderless international economy (Intriligator, 2003). Globalization is often used to refer to economic globalization. The integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. Besides that, globalization also can be defined as process of greater interdependence among countries and their citizens. It consists of increased integration of product and resource markets across nations via trade, immigration and foreign investment-that is via international flows of goods and services, of people and of investment such as equipment, factories, stocks and bonds. It also includes non-economic elements such as culture and the environment.
The globalization can be classified into three types of waves such as first wave, second wave and third wave. This globalization has a different period of time because it have different of factor that drive the changes to continues become better of globalization. First globalization happens in year 1870 until 1914. Globalization at this stage happens when decreases in tariff barriers and invented in new technologies to decrease transportation cost such as the shift from sail to steamships and railways. The first wave is ended by World War I and the increase in protectionism. Thereafter, the second wave happens in year 1945 until 1980. This type happens because decreases in transportation cost and specialization of manufacturing products in developed countries. This specialization of manufacturing products can easily to understand when the comparative advantage and absolute advantage theory of trade be apply in this specialization to increase the output to reduce the cost of production. Cost of production can be reducing when the country that has advantages in produce product will be given the power to produce that product without any intervention from other countries. The following wave is third wave, it is start in year 1980 after the end of second wave. The last wave happens when a number of developing countries such as China produces and exports manufacturing products and it is also happen when Outsourcing some parts of manufacturing products are produced in more than one country. In this stage, developing countries also have acting as an importance player in international trade.
Generally most countries have experienced the impact of globalization on their country. As we can see the impact of globalization can be benefit and harm to nation economy. When globalization happen the world become smaller, improvement in technologies, increase economic growth and so on. To more clear about the impact of globalization, Belgium will be used as an example to explain the impact of globalization. Belgium is more interesting to be...