The two most recent episodes of globalization were characterized by increased integration in
trade, capital flows and movement of labour. In both these episodes of globalization, rapid
trade and output growth went together with major shifts in the relative size of the economies
involved. One valuable lesson from history is that globalization has not been a smooth
process. It has often been marked by periods of accelerated integration (as observed in the
19th century and in the second half of the 20th century) and by periods of dramatic reversals
(as in the inter-war period) sometimes with costly consequences.