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Global economic integration is not a new phenomenon. Some communication and trade took place between distant civilisations even in ancient times. Since the travels of Marco Polo seven centuries ago, global economic integration - through trade, factor movements, and communication of economically useful knowledge and technology - has been on a generally rising trend. This process of globalisation in the economic domain has not always proceeded smoothly. Nor has it always benefited all whom it has affected. But, despite occasional interruptions, such as following the collapse of the Roman Empire or during the interwar period in this century, the degree of economic integration among different societies around the world has generally been rising. Indeed, during the past half century, the pace of economic globalisation has been particularly rapid. And, with the exception of human migration, global economic integration today is greater than it ever has been and is likely to deepen going forward.
Three fundamental factors have affected the process of economic globalisation. First, improvements in the technology of transportation and communication have reduced the costs of transporting goods, services, and factors of production and of communicating economically useful knowledge and technology. Second, the tastes of individuals and societies have generally favoured taking advantage of the opportunities provided by declining costs of transportation and communication through increasing economic in-tegration. Third, public policies have significantly influenced the character and pace of economic integration. Evidence suggests that in the future the process of global economic integration will take place through voluntary means. People around the world will decide to participate because they see the benefit to them of such participation. Participation in the global economy will not occur at the point of a sword or facing the muzzle of a gun. This provides the reasonable assurance that the fundamental forces that are driving global economic integration are, in fact, driving the world toward a better economic future.
