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World War 1
The First World war resulted in the destruciton of many farms, towns, buildings, roads etc. and was very costly. After the war the economic system was devasted and the production of goods was really low. Many countries around the world were in great debt. -
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Russian Revolution
The Russian Revolution ended in the control of the Communist Party. This directly affected the economic system of Russia as the government controlled everything, even everything that passed in and out of the borders of Russia. Every person in Russia worked for the collective and the economy of Russia. This limited innovation and trade within Russia. -
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The Great Depression
The Great Depression had a major impact on the whole economic system of the world. With the stock markets crashing, people loosing jobs and money, almost every person was poor. Countries could not trade with each other and governments struggled to keep society running. -
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World War 2
With the world in a depression, the war demanded the manufacturing of arms, airplanes, and ships. This caused many women and unemployed civilians to join the workforce. There were less people unemployed and the economy began to rebuild itself. -
Bretton Woods Conference
In this conference they disscused ways on how to successfully sustain a stable economy. The organization the United Nations supported the International Monetary Fund and The World Bank which directly helped the global economy and encouraged international trade. -
Creation of the United Nations
This was the official establishment of UN. With its goals and structure already set, countries were free to sign up as a member of the organization. They aimed to maintain imternational peace and security and social cooperation.With UN helping stablalize the global economy, money and trade was encouraged between countries which directly affected the economy. -
General Agreement on Tariffs and Trade
This agreement wsa signed by many countries. It ended trade taxes (tariffs) and other trade barriers. This allowed countries to prosper in trading goods and services nationally. The agreement enhanced the global economy through international trade. -
Hayek's theory wins Nobel Prize in Economics
In the 70's, after Keynes theory of government involvement was failing, Hayek's became popluar and eigh percent of the world's economy were capiltalistic. The free market began to expand when the Cold War ended and twenty-eight percent of the world's economies were capitalistic. The value of forgein trade reached 664 billion dollars. With more countries with simliar mindsets, the free market allowed more money to flow between countries. -
Collapse of the Soviet Union
With the Berlin Wall being destroyed, the city was reunited and was no longer ruled by the Soviet Union. During the Cold War, borders were closed and organizations like the WB and IMF could not increase trade. But with the collapse of the Soviet Union borders went down and trade and money were flowing between countries. Economies were prospering with the free market. -
World Trade organization is established
Ermerging from the GATT, the World Trade Organization was helping to regulate trade through services such as telecommunications and banking. The WTO also helped create rules to protect copyright and intellectual property. This encouraged more trade and generated more money in the global economy.
