Foundations of Economic Globalization Pages 216-231 of Exploring Globalization Read and note the following headings: What does

economic globalization mean?

Economic globalization means that the countries of the world are becoming more interdependent on one another in terms of global trade, global transportation and communication systems and the unequal distribution of wealth that causes conflicts between countries over natural resources.

Aspects of economic globalization

Come people see globalization as a good thing because it creates healthy interdependence that will help everyone become wealthy. Other people such as economists say that although it is good, it does not yet benefit all people.

Some factors that affect the global economy

War between countries, Famine which effects international markets, Economic uncertainty caused by factors such as collapse of industry and political change, Government economic policies such as trade regulations, Renewable resource price changes such as oil and gas, A change in investors' confidence which can affect share prices on stock exchanges and natural disasters.

The costs of World War 1

15 million soldiers and civilians were killed during WWI. Canada lost 66,000 men. The war left emotional scars from living under constant fire of machine gun and bombardment. The European government borrowed money from America and owed 7 billion dollars in 1918.

The costs of peace

When Germany lost the war they had to help pay back for all the damage that they did. These reparations were seen as to severe and would starve people and spark another war, the loss also meant Germany had to give up its colonies.

The effects of WW1 on the Canadian economy

World war one cost the Canadian government 2.5 million dollars a day. Income tax was introduced to help subsidies the costs. The war also led to unemployment among Canadians because all the people were involved in the war.

The Russian Revolution

The Russian empire covered one-sixth the earth's surface. Russian peasants lived with little control over their labor and property. The Russian soldiers had poor weapons and were easily defeated. Workers rebelled demanding better wages and conditions and the Russian economy was shut down. A civil war started and between 1920 and 1922 a drought and famine killed 5 million people.

Communist Russia
The Soviet Union's was the world's first communist state. Communism was an economic model that was to get rid of class distinction. It opposed capitalism and countries such as the United States. The governments controlled the economy - farming, industry and transportation.

The Great Depression

During the 1920's many countries experienced an economic boom, but on Black Tuesday investors started to panic sell and caused the economy to crash. People had less money, so less consumer goods were bought which reduced the demand, and which laid off workers which led to widespread unemployment. Businesses that tried to protect themselves by using trade barriers caused international trade to decline, which then led to even more people losing their jobs.

World War 2
The great depression also affected Germany hard. Hitler and his Nazi party promised to fix things and in 1933 he was declared leader and self proclaimed fuhrer. He convinced the German people that they were a part of a superior race. In 1939 he invaded Poland and declared war. More than 50 countries were included in this war and more than 60 million people died including civilians. German death camps included Jews, Poles, Czechs, Roma, Serbs, Ukrainian and Russians, as well as homosexuals, people with mental disabilities and POW's.

What factors laid the foundations of contemporary global economics?

The people wanted to support people who wanted to choose their own government, help countries cooperate on trade issues, protect smaller countries against invasion by larger countries and ensure that no single country controlled the world's oceans.

The United Nations Monetary and Financial conference at Bretton Woods

In 1944, 44 countries came to meet in New Hampshire. The conference delegates were trying to figure out how to prevent such economic turmoil that may lead to another war.

John Maynard Keynes

Keynes warned that the treaty that ended world war one would fail. He believed that unrestricted capitalism had failed. He also said that the governments limited role in the exnomy was the reason for the great depression.

Friedrich Hayek
Hayek disagreed with Keynes. Hayek mistrusted the governments control. Saying that the government should sure that its rules do not interfere with business and trade.

The World Bank and International Monetary Fund

The world bank helped expand world trade. It hoped that persuading countries to agree on rules would help avoid conflict that might lead to another war. The world bank also helps students understand the economy to start healthy ideas about rules and regulations for a strong economy.

General Agreement on Tariffs and Trade

In new Hampshire, countries agreed to work together to establish trade rules, which was signed in 1947 (GATT). It had also set rules to protect copyright and intellectual property, such as slogans, designs, and patents.