The global economy has existed for at least 5 centuries now. During the 1400s and 1500s, explorers traveled from different parts of the world to establish trade routes and set the first foundations for the global economy. Merchants from Spain, Portugal, France and different parts of Europe began to trade with Asia and China, and vice versa. Many "universal" products today, like chocolate, coffee and potatoes were the result of this very global economy. Indeed, these products were not native to the whole world back then.
From the development of sea routes, all the way up to the industrial era, "products" continued to be at the core of the global economy. However, in the last fifty years, after the World War and later, the fall of communism, services have grown to be equally important. In the 1980s, in developed countries, including America, large sections of jobs shifted from factory or agricultural sectors to services, and this trend was reflected in the global economy.
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Author:Preetam Kaushik
