Download Globalization WHAP/Napp “In July 1944, with Allied victory a

Globalization
WHAP/Napp
“In July 1944, with Allied victory a foregone conclusion, economic specialists
representing over forty countries met at Bretton Woods, a New Hampshire resort,
to devise a new international monetary system. The signatories eventually agreed to
fix exchange rates and to create the International Monetary Fund (IMF) and World
Bank (formally the International Bank for Reconstruction and Development). The
IMF was to use currency reserves from member nations to finance temporary trade
deficits, and the World Bank was to provide funds for reconstructing Europe and
helping needy countries after the war.
The Soviet Union attended the Bretton Woods Conference and signed the
agreements, which went into effect in 1946. But deepening suspicion and hostility
between the Soviet Union and the United States and Britain undermined
cooperation. While the United States held reserves of gold and the rest of the world
held reserves of dollars in order to maintain the stability of the monetary system,
the Soviet Union established a closed monetary system for itself and the new
communist regimes in eastern Europe. Similar differences were found across the
economies of the two alliances. In the Western countries, supply and demand
determined prices; in the Soviet command economy, government agencies allocated
goods and set prices according to governmental priorities, irrespective of market
forces.
Many leaders of newly independent states, having won the struggle against
imperialism, preferred the Soviet Union’s socialist example to the capitalism of their
former colonizers. Thus, the relative success of economies patterned on Eastern or
Western models became part of Cold War rivalry. Each side trumpeted economic
successes measured by industrial output, changes in per capita income, and
productivity gains.” ~ The Earth and Its Peoples
1- Why, particularly towards the end of the Second World War, did economic
specialists meet at Bretton Woods? ___________________________________
2- What was created to attempt to ensure economic stability in the world?
__________________________________________________________________
3- How did the Cold War affect economic cooperation?
__________________________________________________________________
4- What determined price in the Western countries?
__________________________________________________________________
5- How were goods allocated and prices determined in the communist world?
__________________________________________________________________
6- Identify one fact about a free market economy.
__________________________________________________________________
7- Identify one fact about a command economy.
__________________________________________________________________
8- What did many leaders of newly independent states prefer?
__________________________________________________________________
9- How did competing Cold War economic systems impact other nations?
__________________________________________________________________
10- How did the Great Depression change economic thinking? _______________
Notes:
I. Overview
A. Globalization
1. Process of accelerating engagement among peoples of the world
2. Vastly accelerated after WWII
B. Bretton Woods
1. Negotiated “rules” for commercial dealings
2. World Bank and International Monetary Fund established
C. Neo-Liberalism
1. Reduction of tariffs
2. Free global movement of capital
3. Encouraging Free Market
a) Free Movement of Capital/Investing abroad
D. Transnational Corporations (TNCs)
1. Produce goods/deliver services in many countries
E. Migration of Labor
1. In search of jobs and wages  Also “Brain Drain”  educated
professionals leaving Global South
F. Impact of Economic Growth
1. Worsened rift between developed nations and developing world
2. Rich nations of Global North and poor nations of Global South
G. Also Inequalities Within Global South
1. Oil-rich Middle East vs. Cash crop Nations
2. Making united action difficult
H. Chiapas Rebellion in Mexico
1. Viewed globalization as negative seen as 
“eliminating people who are not useful”
I. Antiglobalization
1. Criticizing globalization  Protests against WTO (World Trade
Organization)
II. Overview – Influence  USA and Reactions
A. Collapse of USSR
1. US military dominance unchecked
B. September 11, 2001
a) U.S. attacked Afghanistan/Had sheltered Osama bin Laden
C. Iraq
1. U.S. attacked Iraq (2003)
a) Hussein developing Weapons of Mass Destruction
D. Effort to Contain Terrorism
1. Another global struggle after collapse of USSR
E. Changing Realities - USA
1. Once world’s leading creditor/Now world’s leading debtor
F. Impact of Vietnam War
1. Gave rise to charges that the Cold War had undermined American
democracy
2. Had promoted a powerful “imperial presidency”
a) A culture of secrecy/Obsession with national security
b) A similar set of concerns arose with the invasion of Iraq
G. The Movement of Ideas
1. Ideas increasingly traversed the planet
2. The Civil Rights Movement
3. The Youth Culture
4. 1968
a) Student-led movement in France protesting university
conditions
b) “Prague Spring”  challenging Soviet rule in Czechoslovakia
 crushed
5. Ernesto “Che” Guevara  became a heroic figure to third-world
revolutionaries
6. Feminism
a) Challenged relationships between men and women
b) Had begun in West for suffrage
c) Addressed inequities
d) Addressed opportunities for women
Complete the Review Quilt Below (Place Key Points in Each Box):
Bretton Woods:
International
World Bank:
Cold War:
Monetary Fund
(IMF):
Free Market
versus Command
Economy:
Globalization:
Neo-Liberalism:
Inequalities –
Global North
versus Global
South:
Feminism :
“Prague Spring”:
Ernesto “Che”
Guevara:
U.S. Invasion of
Afghanistan:
U.S. Invasion of
Iraq:
Civil Rights
Movement:
Youth Culture:
WTO:
Application: Questions from the World History AP examination
1. The Kyoto Accord of 1997 was
4. How did World War II
intended to deal with the
change the patterns of
problems associated with
international trade?
(A) The illegal trade in small
(A) No countries traded with
arms
Germany after the war.
(B) The HIV/AIDS epidemic
(B) The World Trade
(C) The growing number of
Organization was created
biological-weapons programs
soon after the war ended.
(D) The climatic trend known as
(C) The war diminished the
global warming
European powers’ control
(E) The spread of nuclear
over world markets.
weapons
(D) The USSR began trading
more with Western Europe.
2. Which of the following is NOT a
(E) The United States stopped
nongovernmental organization
trading with Asian countries.
(NGO)?
(A) Greenpeace
5. In Latin America,
(B) The National Rifle
modernization has
Association
often led to
(C) Amnesty International
(A) Greater social equality
(D) Habitat for Humanity
(B) Better control over illegal
(E) The European Union
drug trafficking
(C) Diversified economies
3. Which of the following would be
(D) A concentration of wealth in
considered an integrating trend
the hands of political and
in global development today?
economic elites
(A) The worldwide proliferation
(E) The establishment of
of Internet technology
communist regimes
(B) Religious fundamentalism in
Afghanistan
6. Which of the following
(C) Discrimination against
factors has NOT
Turkish guest workers in
interfered with African
Germany
modernization?
(D) All of the above
(A) The AIDS/HIV epidemic
(E) None of the above
(B) Lack of cultural or linguistic
unity within African states
4.
Postindustrial modes of economic
(C) Negative population growth
activity focus MAINLY on providing
(D) Corruption
(A) Manufacture goods
(E) Interethnic conflict
(B) Services
(C) Raw materials
(D) Plastics
(E) Hand-crafted products