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World War One
World War I was caused by the assignation of Archduke Franz Ferdinand of Austria-Hungary by a Serbian nationalist. Due to his death, Austria-Hungary declared war on Serbia. This led to the Allies and Central Powers being dragged into the conflict. The war caused poverty for all of Europe. This affected economic globalization, as for the first time nations had to borrow loans from each other to rebuild their countries. Germany's economy got hit hard by the war and was driven deep into debt. -
Treaty of Versailles
The Treaty of Versailles was signed on June 6th, 1919. It formerly ended World War One and required Germany to pay reparations for their damages caused by World War One. In addition, Germany was required to give up portions of their land and lose all their colonies. This impacted economic globalization because it forced the German economy into great debt. It led to unstable times in Germany witch led to a great opportunity for a bad leader to rise to power. -
The Rise Of Communism
The rise of communism in Russia happened when Vladimir Lenin created the Soviet Union. It was the first communist state ever created. He rallied the country together and helped to start building the economy back. This affected economic globalization because Russia was able to become one of the most wealthy nations on the planet though industrialization and communism. It proved that unconventional ways to boost an economy worked. -
Stalin Rules Russia
In 1924 Vladimir Lenin died. Due to this Joseph Stalin came to power over the USSR. When Stalin was in power he made the Soviet Union into an industrial superpower by implementing his five-year plan. This plan affected economic globalization as Stalin wanted major industrial and agricultural growth within five years. He was able to get the Soviet Union on track for being one of the modern-day global superpowers it is today. -
The Great Depression
The great depression was caused by a global stock market crash in 1929. People's homes and businesses were being taken away to pay off the loans borrowed for stocks. Everybody was poor. This crash affected economic globalization because almost every country in the world experienced this economic crash. The Great Depression caused people all around the world to be driven into poverty. Countries were unable to trade with each other as high tariffs were implemented to try revive the economy. -
Hitler Comes To Power
The Great Depression along with the Treaty of Versailles had major impacts on the German economy. People were desperate for a new leader to help them out of this situation. Adolf Hitler rose and claimed that he could fix their problems. Hitler was then sworn into power but later turned into a dictator and started World War Two. This affected economic globalization because Hitler's decisions in World War Two later triggered the idea of creating the World Bank. -
World War Two
World War Two was the second global war with the European theatre being the main focus. It officially started when Germany invaded Poland, one of France and Britain's allies. This war significantly impacted economic globalization as it led to a movement of countries trading with each other. At the end of the war, countries spent money rebuilding each other's economies and helping give aid to one another. This created the World Bank. -
International Monetary Fund (IMF)
The International Monetary Fund (IMF), was created at the Bretton Woods Conference to encourage global trade. The IMF supports economic policies for countries around the world. This affected economic globalization as it helped countries trade with each other easily and helped supported financial stability in its partnered countries around the world. -
Bretton Woods Conference
In 1944, delegates from 44 countries were brought together to discuss how they could prevent economic unrest from causing another world war. Through this conference, the International Monetary Fund and the World Bank were formed. These two groups helped rebuild nations after World War Two. This conference affected economic globalization as it set the rules on how countries deal with monetary affairs. -
World Bank (WB)
The World Bank was the second major outcome of the Bretton Woods Conferences. The World Bank was created to help give out money to rebuild Europe and Asia after World War Two. This affected economic globalization as it was the main way countries were able to start rebuilding themselves. As the bank gave out more loans it brought stronger economic ties between nations and ultimately brought more stability in the war-torn countries from World War Two. -
General Agreement on Trades and Tariffs (GATT)
GATT was established in 1947 in the aftermath of World War Two. Its goal was to increase global trade by removing barriers like tariffs and sanctions that hindered free trade. This affected economic globalization because it freed up the global economy and made international trade more doable. It also helped push globalization forward as it allowed goods to easily flow between nations. -
World Trade Organization (WTO) Created
In 1995 the World Trade Organization was formed out of GATT. The WTO was a new and improved organization that ensured trade was as seamless as possible. They have set the rules for trading between nations. If there is a dispute the WTO is responsible for resolving it. This affects economic globalization as it creates many more trade opportunities across the world. It also allowed countries a way of negotiating and discussing trade agreements they have.