Globalization is often defined as, “the process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology”. New York has been and still is the heart of the art market where the “largest and most influential art dealers headqu
artered and the main contemporary art auctions are organized”. Throughout history, art has changed significantly because of the impact both the economy and society has made. The art industry suffers because of global economic crisis. There has been an increased rivalry with the contemporary side of the art market and auction houses. In the reading it mentions the increased demand for contemporary art and how this affects the prices. “This increased demand is reflected in price levels for the top segment of contemporary art, which between 1990 and the peak of the market in 2008, rose more than sixfold. In other market segments, price increases were more modest. Between 2
003 and 2007 the size of the contemporary art market grew spectacularly by 851 percent worldwide, again much higher than the 311 percent growth of the overall art market”. Because of todays society, art works that were created centuries ago remain precious. For example, Pablo Picasso’s “Le Rêve” sales for $155 Million. Europe and the United States were once the hot spots for the art industry. The emerging art markets has caused the art industry to grow tremendously in countries all around the world such as, India, China, Russia and the UAE. “As a culmination of this ecommerce development, in January 2011, the first online art fair took place, in which many established dealers from the United States and Europe participated. As in the case of auctions, globalization may further spur this development; especially in India, internet sales and online auctions are considered much more legitimate and more common as sales venues than in Europe and the United States”.