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World War 1 Begins in Europe
-Imperialistic arrangements with other countries led to a massive increase in the production of goods.
-Competition for more resources and trade led to WW1.
-America's economy greatly benefitted from this as they produced and supplied a lot of goods to the other countries.
-Many countries owed USA money, as a result of trying to speed up their development. -
Revolution and civil war begin in Russia
-Poor conditions and technology for workers and soldiers meant it was hard for the people to survive, as a result nearly four 4 million were killed at the beginning.
-Workers and peasants started to rebel against the government ( kinda started the idea of a union)
-This shut down the entire economy of nearly 150 million people. A collapse of an economical system and the czar-leadership idea showed less and less promise, which is why economical/political systems don't run like that today. -
Civil War ends in Russia with the Communist Party in control
-Was the world's first communist state
-Since the USSR was a one-party state, it controlled pretty mcuh everything. All the trading between each "country", or at that time "region", and their trade agreements were controlled by the one party.
-The USSR was really just Russia but significantly bigger, and because of historical events, Russia is economically and in most ways a super power nation. -
Great Depression begins when stock markets crash in major cities
-What was a downfall turned into an economic crash due to panic from investors
- Now we can learn from our mistakes and interpret the stocks better.
- Many people lost jobs in this time period, many companies shut down. Millions of dollars were lost.
- As a result many nations threw up trade tarrifs on imports, this really decreased international trade. -
World War 2 begins in Europe
-WW2 was a result of an attempt to save a nation who was about to get "knocked out".
-More than 50 countries were part of the war
-60 million people died affected the world population)
-Worldwide- this affected each nation because they started spending wildly and the manufacture of arms, ships, and airplanes rose.
-Jobs opened up in the forces and manufacturing wings. -
World War 2 ends with the surrender of Germany and Japan
-With the war over, countries had a steady economy now and had the potential to prosper and trade.
- The unemployment rates which were high before the war, are now low, because jobs were needed and people got them.
- Global peace means more trade. -
General Agreement on Tariffs and Trade (GATT)
-Trade rules were implemented to encourage global trade , so we could get to where we are today
-Implied the idea of free trade -
Invention of shipping containers
The Conatinerization of things made global trade way easier.
Shipping conatiners allowed for more things to be shipped in 1 container and ship things together. This proved to increase trade and speed up mass production. It increased trade worldwide. -
Destruction of Berlin Wall
- The idealistic perspective of being a democratic government was popular and was favored, compared to the old-style communist thinking. -This meant capitalism was in favor and most of the world started pushing towards a free market.
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WTO emerges from GATT (Word Trade Organization)
-Regulates trade in services, like telecommunications and banking, as well as goods.
-Has rules to protect copyright and intellectua property
-This is pretty much our modern global trade, they regulate and control to ensure peace and that everyhting is how it's supposed to be. -
Internet-Based Economy
-Means most of trade is being done through the internet
- This allows for buying and selling globally without really having to go anywhere.
-A revolutionary tool for trade
-Something of the future
