Global stock market
Though, is speed of such enormous importance? Thus, there is a global stock market today in that information from a stock market in one part of the world is broadcasted immediately to those in others; ever since the start of electronic communication this has been the case. In fact, information in London about the New York market passed more gradually before 1939 and even more slowly before 1914. It was slower in spreading around and was far less comprehensive than now. Nevertheless, big movements in the stock markets were known and reflected in the stock markets of the world.
Short-term and smallish fluctuations are imitated all through world markets today more rapidly than they we...
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...re in the thirties, but big and long-term fluctuations always were reflected around the world once markets had become consistent (Collins J. C. , and J. I. Porras. 1991). We can go even a further back and argue that globalization, in the logic of a growth in interconnectedness between members of different states, is itself only a special case of something more universal.
In medieval Europe most people for most-of the time stayed close to where they were born. They inspired mainly local goods and, primarily, produced either for themselves or for a very local market (Schlossberg H. 1992). Economies were mainly local. Trade over considerable distances took place on water either by sea or river, which accounts for the inconsistent number of towns and villages which were either by the sea or on rivers. Human beings seem to have had a steady urge to detach themselves from the area as much as the technology of the day permitted.
Certainly there have always been big movements, sometimes of populations looking for better circumstances and of conquerors building empires. Under the Roman Empire, large parts of Europe were ‘globalizing’ in this sense and the degree of globalization declined with the Empire’s retreat. The medieval Church could be seen as several form of globalizing force but the degrees of interaction and interdependence were much reduced in the so-called Dark Ages. Communications are also of significance in considering the ‘nationalization’ of different states.
As communications enhanced (which before electronic communication meant, in fact, how fast people could travel), states had much more practical unity. This was mostly true of large states such as Canada and the United States where the railroad meant that people could travel between the major population centers, and numerous of the minor population centers, within two or three days as opposed to weeks. Markets then became national as an instant precursor to becoming international. These changes can all be measured parts of the same process.
On this view, globalization is a trend which has been going on for centuries, which is undeniably continuing and might be accelerating. In this sense, the present period is not in itself novel. However, Scholte (1997) argues that there is more to globalization than this. For him globalization is not just communication on a global scale but deterritorialisation or superterritorialisation of numerous activities which formerly were tied to some terrain, not as a matter of an accident but as a matter of necessity. Thus, there is efficiently a global stock market.
There are twenty-four hours trading in the world as a complete and traders in, say; the Tokyo markets keep a close eye on the London market on a real-time basis. There are differences. Tokyo is not just a postal (or e-mail) address of any implication but these differences are minor compared with the similarities or with the distinctions that existed even thirty years ago. It would most probably be possible to place all the worlds’ stock markets in a single place say on a South Sea island and it would make very little difference.
It would perhaps make even less difference if this were to be done in twenty years’ time. (It might be a development. The traders might be so tempted by the sun and the good life that they would spend less time trading. Thus, trade less anxiously, and calm the often totally needless fluctuations in the various financial markets. ) On the other hand, certainly, all the traders could work from home. This is the point. The actual geographical location is trivial (Weiner E. 1992).