grown dramatically in the last few decades.

The first wave of globalization started in the nineteenth century and lasted up to the beginning of World War I.

Over that time, global exports as a share of global GDP rose from less than 1% of GDP in 1820 to 9% of GDP in

1913. As the Nobel Prize-winning economist Paul Krugman of Princeton University wrote in 1995:

It is a late-twentieth-century conceit that we invented the global economy just yesterday. In fact, world

markets achieved an impressive degree of integration during the second half of the nineteenth

century. Indeed, if one wants a specific date for the beginning of a truly global economy, one might

well choose 1869, the year in which both the Suez Canal and the Union Pacific railroad were

completed. By the eve of the First World War steamships and railroads had created markets for

standardized commodities, like wheat and wool, that were fully global in their reach. Even the global
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