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World War I
World War I was influential to economic globalization due to the high costs of war. As an example, European governments owed approximately $7 million dollars to the US. As well, as a result of high demand for soldiers, nurses, and factory workers, many places (including Canada) suffered from a a shortage of workers. -
Civil War in Russia
In 1917 the civil war began in Russia which overthrew Czar Nicholas as monarch. As a result of the rebellion, the Russian economy shut down and little exports or imports were made to and from Russia a few years after. -
End of World War I
After WWI production of manufactured goods in areas with high debts (as a result of the war) was reduced by 25-80%. As well, many countries blocked off international as an attempt to recuperate. At the ending of the war many who were working and fighting in the war were left unemployed. -
Treaty of Versailles
The Treaty of Versailles, the peace treaty ending WWI, instructed Germany to abandon all armed forces as well as pay a high amount of debt that Germany could not pay off which lead to high levels of unemployment and a great effect on the economy that was now drained of money. -
Joseph Stalin & the USSR
The dictator, Joseph Stalin, got the economy the Soviet Union back on their feet. However, this came at a cost as farms were made collective and a mass amount of goods were exported resulting in the starvation, and death, of millions. Farms that were made collective were controlled and turned over all of their products to the government, -
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The Great Depression
An major economic deppression occured in the years after WWI. 26.6% of Canadians were left unemployed due to job cuts and the price of goods was greatly reduced. In addition to unemployment, the drought that occured also lead to poor growing conditions which evidently lead to a drop in annual income of farmers. -
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World War II
During WWII, aside from the millions that died, also caused economic issues. The government of Canada, for example, spent a majority of their money on arms, airplanes, and other equipment used in the war. Also, as a result of the advancement in technology, farming also became more mechanized and emplyment also rose. -
The World Bank and IMF Created
After WWII a conference called the United Nations Monetary and Financial Conference occured and from that came the creation of the IMF and WB. These organizations have goals that range from speeding up economic practices in developing countries to establishing economic stability and governing international trade. -
The Cold War Begins
The Cold War, was the war widely known as being between the United States and the Soviet Union over conflicting economic views. Though the war never evolved to the warfare level, it caused friction between capitalists and communists. Both countries spent immense money on building up their military as well as making cutbacks various times. -
Fall of the Berlin Wall
The fall of the Berlin Wall signals the end of the Cold War. The wall was originally put up in order to separate East and West Berlin in a conflict between Communism and Capitalism. The fall of this wall allowed more freedom and helped Berlin to further develop an economic system.
