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The-Making-of-a-Global-World

The document outlines the historical development of a global interconnected world, highlighting key factors such as the Industrial Revolution, technological advancements, and the rise of multinational corporations. It discusses the impact of events like World War I, the Great Depression, and the establishment of the Bretton Woods system on international trade and economic cooperation. The rise of globalization in the post-war era is emphasized, detailing the roles of international institutions in facilitating trade and financial stability.

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10 views

The-Making-of-a-Global-World

The document outlines the historical development of a global interconnected world, highlighting key factors such as the Industrial Revolution, technological advancements, and the rise of multinational corporations. It discusses the impact of events like World War I, the Great Depression, and the establishment of the Bretton Woods system on international trade and economic cooperation. The rise of globalization in the post-war era is emphasized, detailing the roles of international institutions in facilitating trade and financial stability.

Uploaded by

puneet_g78
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The Making of a

Global World
The world has been steadily becoming more interconnected since the
nineteenth century. This is due to a number of factors, such as the growth of
international trade, the expansion of transportation networks, and the
spread of communication technologies.

by Varsha Goel
The Nineteenth Century
1 Industrial Revolution
The Industrial Revolution was a period of major technological
advancements. This led to a dramatic increase in production
and trade, and also fostered global interconnectedness.

2 Technological Advancements
The invention of the steam engine and the railroad
transformed transportation, allowing goods and people to be
moved more efficiently and across greater distances.

3 Rise of Colonialism
European powers expanded their colonial empires, resulting
in a vast global network of trade and political control. This
further contributed to the interconnectedness of the world.
The Expansion of the World Economy
Free Trade Financial Integration Global Trade Networks
The idea of free trade, where goods Financial markets became increasingly The expansion of the world economy
could move between countries without interconnected, with investors and was accompanied by the development
tariffs or other barriers, gained lenders operating across national of global trade networks. This allowed
momentum. borders. This led to a greater flow of for the exchange of goods and services
capital, as well as increased risk. on a global scale.
New Patterns of Trade and Investment

1 Rise of Multinational Corporations 2 Foreign Direct Investment


Multinational corporations began to play an increasingly Foreign direct investment (FDI) increased significantly
important role in the global economy. They established during this period. This refers to investments made by
operations in multiple countries, bringing jobs, companies in foreign countries, including building
investments, and new technologies to different regions. factories, acquiring businesses, and investing in real
estate.

3 Global Commodity Markets 4 Technological Innovation


The rise of global commodity markets allowed for the Innovations in transportation, communication, and
efficient trading of raw materials such as oil, gas, and manufacturing transformed how goods were produced,
agricultural products. This facilitated the development of transported, and traded. This created new opportunities
global supply chains and increased economic for businesses and further integrated the global
interdependence. economy.
The Inter-War Economy
World War I

1 World War I disrupted global trade and finance. The war led to
a decline in economic activity and increased economic
instability.

Rise of Protectionism

2 Countries raised tariffs and other barriers to trade, further


hindering economic recovery. This led to a decline in
international trade and increased economic isolation.

The Great Depression


The Great Depression was a period of severe economic
3 hardship that began in 1929. This global economic downturn
was caused by a number of factors, including the war's
aftermath and the instability of the financial system.
The Great Depression
Global Economic International
Collapse Cooperation
The Great Depression had a The Great Depression
devastating impact on the highlighted the need for
global economy. Trade international cooperation to
plummeted, unemployment manage economic crises.
soared, and many businesses However, the lack of effective
failed. global institutions hampered
efforts to address the problem.

Rise of Nationalism
The economic hardship of the Great Depression led to a rise in
nationalism and protectionism. This further undermined international
cooperation and contributed to the outbreak of World War II.
Rebuilding a World Economy
Post-War Recovery Economic International
Challenges Cooperation

The world economy The war had left Recognizing the


needed to be rebuilt many countries in need for global
after the devastation ruins, with depleted cooperation, nations
of World War II. This economies and began to work
required significant limited resources. together to rebuild
investments in Reconstructing the world economy.
infrastructure, infrastructure, This included
industry, and human rebuilding industry, creating new
capital. and addressing international
widespread poverty institutions and
were crucial establishing rules for
challenges. international trade
and finance.
The Post-War Era

Economic Growth Expansion of Trade


The postwar era was a period of International trade expanded
remarkable economic growth. This significantly during this period,
was driven by several factors, facilitated by the reduction of trade
including technological barriers and the growth of
advancements, government multinational corporations.
spending, and the rise of
consumerism.

Financial Stability International Cooperation


The Bretton Woods system provided Countries worked together through
a framework for international international institutions like the IMF
monetary cooperation, helping to and the World Bank to address
stabilize exchange rates and global economic challenges and
promote global financial stability. promote development.
The Emergence of the Bretton Woods System

1 Fixed Exchange Rates 2 International Monetary Fund (IMF)


The Bretton Woods system established a system of fixed The IMF was created to provide short-term loans to
exchange rates, where currencies were pegged to the countries facing balance-of-payments difficulties. This
US dollar. This helped to stabilize exchange rates and helped to stabilize the global financial system and
reduce uncertainty in international trade and finance. prevent economic crises.

3 World Bank 4 Trade Liberalization


The World Bank was established to provide long-term The Bretton Woods system also aimed to promote trade
loans to developing countries for infrastructure and liberalization. This involved reducing tariffs and other
development projects. This helped to promote economic barriers to trade to encourage global economic
growth and reduce poverty. integration.
The Rise of Globalization
1 2 3 4

Technological Growth of Liberalization of Rise of Global


Advancements Multinational Trade and Finance Institutions
Advances in Corporations The reduction of trade International institutions
transportation, Multinational corporations barriers and financial like the World Trade
communication, and expanded their operations regulations facilitated the Organization (WTO) and
information technology globally, investing in integration of national the International Monetary
facilitated the rapid flow of foreign countries and economies into a global Fund (IMF) played a key
goods, services, capital, creating global supply marketplace. role in shaping the rules
and ideas across national chains. and regulations governing
borders. global trade and finance.

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