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Period: to
20th centry
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World War I
World War I was the first World War and it lasted 4 years between 1914 and 1918.
The war affected economic globalization because all the countries involved spent a lot of money and resources fighting for their country. This especially hit hard for Germany's economy. -
Treaty of Versailles
The Treaty of Versailles formally ended WWI and it forced Germany to pay for the damages of the war, disarm, give back the territory that they took over, and also give up all their overseas colonies. This affected economic globalization because it forced Germany into debt and made it hard for them to repay that debt. -
The Rise of Communism
The rise of communism happened when the Soviet Union was created. Communism is an economy where everything is given to the government and then the government distributes it equally to the population.
This affected economic globalization because Russia was one of the richest countries in the world. When Russia became communist, it showed the world that there is another way to run your economy. -
Stalin Ruling Russia
Stalin was a man that was born in a country named Georgia and he later came to Russia.
When Stalin came into power in the Soviet Union, he created something called the 5-year plans. This initiated the rapid industrialization of the Soviet Union because it was very behind in technology. When he did this, the Soviet Union became very rich making it a global superpower. -
The Great Depression
The Great Depression, also known as the Big Sad, was a global economic event. It was caused by a stock market crash and everyone lost their money which led them into poverty. Everyone was poor, all the countries were poor, and everyone was in debt. It was not a good time for the world at the time. This affected economic globalization because all over the world, many nations were also going through the Great Depression which destroyed their economies making everyone poor. -
Hitler Elected Into Power
Hilter was born in Austria at a very young age and when he was growing up, he was a struggling young artist. He decided to lead a political party and convinced Germany that he would resolve the great depression. Everyone believed him and when he was elected, he made himself a dictator and started invading countries which sparked World War II. This affected economic globalization because World War II affected everyone and they had to invest their resources into the war to help the allies win. -
World War II
This was the Second World War which took place in Europe. The war started when the Nazis took over Poland which was the tipping point because Poland was allies with Britain.
World War II affected Economic globalization because most European countries were involved in the war and they had to spend money and resources to feed the fight. At the war's end, the Allied Governments forced Germany to pay the reparations for the war. -
Creation of the World Bank (WB)
The creation of the World Bank took place right before the end of WWII during the Bretton Woods Conference. The purpose of the World Bank was to restore and rebuild the economies that were destroyed by war. They lend money and technical assistance to countries to help rebuild their economies. This helped economic globalization because it created more money connections between countries and helped bring back the economic stability in countries that were affected by war. -
Creation of the International Monetary Fund (IMF)
The IMF was created around the same time as the World Bank at the Bretton Woods Conference. The purpose of the IMF is to supervise the international monetary system. They have to make sure that the exchange rate is stable and they encourage members to remove restrictions on exchange that hinder trade. -
Bretton Woods Conference
The Bretton Woods Conference brought together delegates from 44 countries in 1944. The purpose of the conference was to create a new set of rules for the post-WWII monetary system. With this, came the creation of the IMF and the World Bank which were put in place to help rebuild the global economy and restore from war. This affected economic globalization because it created new rules for the global economy. -
General Agreement on Trades and Tariffs (GATT)
GATT was another agreement to help rebuild economic prosperity after the devastation of WWII. GATT reduced and eliminated trade barriers such as quotas and tariffs to promote international trade. This affected economic globalization because GATT encouraged international trade which made countries depend on each other more and connect their economies further. -
Creation of the World Trade Organization (WTO)
The WTO was created in 1995 to improve the rules of trade between nations. This encouraged its members to use trade as a way to improve living standards by creating more jobs and improving people's lives. The WTO controls and operates the global trade system rules which makes them the only organization to control trade between nations. This affected economic globalization because the WTO created more opportunities to make money and to grow your nation's economy.