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World War 1 (WWI)
Lasted 4 years - 1914-1918
Central powers (Germany, Austria-Hungary, Bulgaria, and the Ottoman Empire) fought against the Allied powers. (Great Britain, France, Russia, Italy, Romania, Canada, USA, and Japan)
Effects on Economic Globalization
- All countries involved had lots of debt and lost lots of resources
- 15 million soldiers killed
- Roads, factories, - Everything Destroyed
Global debt -
Russian Revolution (rise of communism)
Czar Nicholas II was the ruler and an absolute monarch
Russia was far behind in the industrial revolution
4 million soldiers died in the first year of the WWI
Fuel and food shortages
workers rebelled for better working conditions
Czar and his family were murdered in 1918
Civil war till 1922
5 million people starved to death
1922- USSR
became the first communist state
Effects on Economic Globalization
- Famine
-Global debt
- Withdrawal of WWI
- Holodomor -
Treaty of Versailles
Peace treaty which ended WWI
Effects on Economic Globalization
- Ending WWI -
Stalin Leadership
Soviet communism became one state in 1929 ruled by Joseph Stalin
Focused on military and industrial production
forced lots of people to work in factories
Effects on economic globalization
- 5-year plan initiated rapid growth in industrialization
- Collectivizing agriculture
- Limited international trade -
Period: to
Great Depression (Big Sad)
Between 1929-1939
People began investing heavily in the stock market to get rich quickly
stocks began to go down
since people borrowed money they had to sacrifice a lot so they could pay off their loans because the stocks lost their value
since the US was facing a downturn the banks called back the loans that were given out and people were struggling to pay them back
Effects on Economic Globalization
- Since people had no money they could not afford anything -
Hitler
Elected into government and then became dictator.
After the Nazis were in control they made Germans believe they were Aryans
Orchestrated the Holocaust
Millions of Jews murdered
Initiated WWII by invading Poland in 1939
Effects On Economic Globalization
- War causing famine, trade disruptions, damaged infrastructure, displacement etc. -
Period: to
World War 2 (WWII)
Germany invaded Poland under Adolf Hitler's rule and took over Austria, and Czechoslovakia. Britain and France declared war on Germany
Effects on Economic Globalization
- Started War
- More than 50 countries were involved
- More than 60 million people died
- 10-26 million were killed in German Camps. -
Bretton Woods Conference
Representatives of 44 countries met in July of 1944 to figure out how to overcome the economic challenges coming
Developed the World Bank and the International Monetary Fund
Effects on Economic Globalization
- Helped end the WWII
- Interconnected with the world more by helping each other rather than fighting
- Promoted global trade -
World Bank
The head of the bank is appointed by the U.S. government
Owned by the governments of the countries who are members who provide funds
Original Goals
- Lend money to help recover from war
- Speed up economic progression
- Develop natural resources
- Long-Term Loans
Current Goals
- Increase growth and reduce poverty
- Fund-specific infrastructure projects
Effects on Economic Globalization
- Helped end the WWII
- Helping each other rather than fighting
- Promoted global trade -
IMF
Head of IMF appointed by European Union.
24 Executive directors
Funded by the members of the countries
more money = more votes
Original Goals
-Set dependable international exchange rates
- Establishing international economic stability and promoting foreign trade
Current Goals
- Provide emergency short-term loans
- Demanding reforms in countries to promote good governance and eliminate corruption
Effects on Economic Globalization
- Helping each other rather than fighting
- Promoted global trade -
General Agreement on Trades and Tariffs (GATT)
Signed in 1947
Agreed to get rid of tariffs and other trade barriers between countries
Effects on Economic Globalization
- Got rid of trade barriers increasing global trade which lead to more money for everyone -
World Trade Organization
Emerger from the GATT in 1995
Operates the global system of trade rules ensuring global trade is going well
Effects on Economic Globalization
- More trade = More Money