Why has global trade exploded since the mid-twentieth century?

Global trade has surged since the 1950s, accelerating significantly by the 1990s. This video examines the primary drivers behind this expansion, explaining how falling costs and shifting economic policies have reshaped the international landscape.

The rapid growth of world trade is largely attributed to two key developments: the emergence of economic growth in developing nations and the intensification of trade between already wealthy countries. As nations have collectively grown wealthier, the global economy has become increasingly interconnected.

This trend is further supported by structural changes in how goods move across borders. Transportation costs have consistently declined, and governments have progressively dismantled trade barriers, most notably through the reduction of tariffs. These factors combined have created a more favorable environment for international commerce.

Source: Trade and Tariff History