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WW1
World War 1 was very damaging to the countries involved in it. In this war, Britain, France and Russia were pitted against Germany and Austria Hungary. This war affected economic globalization because it ended the first attempt at increasing economic ties between nations. Because of this, some countries (like the United States) benefitted greatly from the war. However others, such as Germany, were badly affected by the war. This eventually led to the Great Depression. -
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Rise of communism
The revolution in Russia was a period of political and social revolts which would eventually lead to the abolishment of the monarchy and a rise to communism. Economically, Russia wasn't doing well, the revolution was a reaction to this. The revolution ultimately led to industrialization and a better economy for Russia, but the cost to get there was deadly and poverty was common. This industrialization in Russia made them competition to the United States, eventually causing the Cold War. -
Treaty of Versailles
This treaty ended WW1 by blaming Germany and handing down harsh punishment, such as pay for the war, give up overseas colonies, and much more. The treaty was a huge hit on the German economy. Germany resorted to desperate measures such printing money resulting in hyperinflation. In the long run, the Treaty of Versailles made it easier for Hitler to take over and eventually led to WW2. -
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Stalin
The Russian Revolution left the union of Soviet Socialist Republics (USSR), a communist party, in charge. In 1929 Joseph Stalin ruled the party. With his five year plan, Stalin increased industrialization by 108%. Stalin allowed Russia to develop a strong modern economy and a strong military. However with this came immense human right violations. The industrialization Stalin induced made Russia competition to the United States, and this, again, led to the Cold War -
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The Great Depression
The Great Depression was a global event that resulted in millions of people in poverty. There were many reasons for this crash, one being the stock market crashing in 1929. The Great Depression had a deep effect on people around the world, mentally, physically and economically. The Great Depression caused many countries to have a very high unemployment rate. It also reduced international trade, making the world more vulnerable to war. -
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Hitler
The Treaty of Versailles made Germany very vulnerable since the economy was crumbling. Hitler promised to fix these problems and was elected to be chancellor on January 30 1933. He started WW2 after invading Poland. When Hitler became chancellor he created rules that he thought would improve Germany's economy. There were many rules but one was tariffs on imports, etc... However, Hitler ultimately affected the world economically by starting WW2 which greatly changed the way the world used money. -
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WW2
WW2 was a global war starting when Hitler invaded Poland, causing Britain and France to declare war. WW2 would take more lives and destroy more property than any other war. WW2 affected the world very differently economically. In the US and Canada, we benefitted from it. Many people gained jobs. However other countries weren't doing so well, especially with the cost of repairing damages. Many countries were also missing young men from the work force which deeply affected the economy. -
Bretton Woods Conference
The Bretton Woods conference was a meeting to prevent another World War from happening. They created the World Bank and International Monetary Fund. This meeting would hopefully protect the world from another world war. It would help countries from having more economic problems because of a world war, such as large reparations and loss of people. -
World Bank
The World Bank was also created at the Bretton Woods conference. It's main purpose is to lend money to war-torn countries, speed up industrialization, develop natural resources in countries and provide long term loans. The World Bank immensely helps the economy in many countries by giving out loans and helping countries that are struggling. It helps with poverty. This also prevents another world war because as seen before, countries in poverty (such as Germany) can start world wars. -
International Money Fund
The International Money Fund was created to set good exchange rates for world currencies, to establish international economic stability, and to promote foreign trade. Now it also provides loans and demands reforms to get rid of corruption. This helps the global economy by helping countries struggling through loans. It also helps connect countries through trade and money, this prevents a world war in the future. -
General Agreement on Trades and Tariffs (GATT)
This was signed to gradually erase tariffs and other things stopping trade. This helps the global economy because it creates bonds between countries. Interdependence between countries stops world wars from happening, so this agreement paved the way for further connections between countries. -
World Trade Organization (WTO)
This emerged from the GATT in 1995, their goal is to help producers of goods and services conduct their business. It helps with trade negotiations, dispute settlement and much more. It basically helps trade between countries to run smoothly. This, again, helps with the interdependence between countries, preventing another world war.