Globalization of the American Economy

Columbus Sails to "the Indies"

Aug 3, 1492

When Columbus set off looking for an alternate route to Asia, He practically created globalization, albiet accidentally, by landing in the Americas and consequently expanding the reign of European countries to a whole new land mass, globalizing, the world.

Triangular Trade

Period: Mar 7, 1580 to Mar 7, 1800

While there is no exact date that this type of commerce occured, the constant trade between the Americas, Europe, and Africa was the begining of a globalized economy. This type of trade would lay the basics for American dependence on foreign trade.

Embargo Act of 1807

Dec 22, 1807

This law enacted by Jefferson attempted to end American foreign trade by prohibiting American ships from departing to a foreign port. The law itself seemed to represent a step backwards in American globalization but the failure to enforce the law led America to realize its reliance on foreign trade.

SS Savannah Crosses the Atlantic

Jun 20, 1819

As the first steamship to cross the Atlantic Ocean, the SS Savannah signified a revolution in transportation that would contribute to globalization by improving commerce and communication between continents.

Opening of Japan

Mar 31, 1854

The US wanted Japan to open up their ports fso that American vessels could trade with them. Commodore Matthew Perry accomplished this- opening up several Japanese ports for trade which broke down barriers between Japan and the rest of the world. This connection to an asian country would increase the American range of exports and imports, supporting Industrialization by providing need for more goods.

Cotton is King

Mar 4, 1858

James Henry Hammond made a speech to the Senate declaring "Cotton is King." In this speech he demonstrated the strong links in cotton trade between the South and Europe.

Open Door Policy

Sep 7, 1899

The Open Door Policy was a statement of principles John Hay dispatched, urging other countries to respect Chinese rights and the ideal of fair competition. This policy was created in order to protect American trade and markets with China.

The Wright Brothers Fly

Dec 17, 1903

The Wright Brothers performed "the first sustained and controlled heavier-than-air powered flight" and among other inventors served to further globalize not only America but the entire world by providing a craft that would eventually maximize the speed of trade and commerce

Panama Canal

Aug 15, 1914

This canal connects Atlantic to Pacific across Panama in Latin America. The US had been showing interest in building the canal to accelerate travel from one side of South America to the other and began building in 1904. The fact that the US was so involved in building this canal demonstrates the heavy involvement it has in the Latin American economy.

Reciprocal Trade Agreement Act of 1934

Mar 29, 1934

This act allowed Roosevelt to reduce tariffs with reciprocal effects in other countries which would allow him to liberalize the American trade policy around the globe.

North American Free Trade Agreement

Jan 1, 1994

This created a trade bloc- in which regional trading barriers are reduced or eliminated -between Canada, United States, and Mexico. While signifying friendliness between world governments, the North American Free Trade Agreement opened up more trade between countries and led the way for others to sign trade agreements around the world.