Thursday, April 11, 2013

Ch 24 pg 723-734


Global interaction and the Transformation of the world Economy took place in the second half of the twentieth century.  After WWI and the Great Depression international trade, investment, and labor migration dropped sharply as major states turned inward.  Technology also contributed to the acceleration of economic globalization with shipping and air services dramatically lowering transportation costs.  Also having powerful international lending agencies such as the World Bank and the International Monetary Fund imposed such free-market and pro-business conditions sent the globe in a positive direction until some places weren’t able to pay off their loans.  After WW11 occurred the nation made a point to not let the economy fall like it once had and instead strived for reglobalization.  World trade was a main contributor to keeping the economy a float.
There are three different forms of capital movement.  The first is foreign direct investment. This is when one country will open up a business or factory in a country other then his or her country.  The second is the short-term movement of capital.  This is when investors buy foreign stocks then sell them quickly.  The third is the personal funds of individuals like credit cards.  Currently there are millions or people who travel the world to find jobs because the country they live in is outsourcing their companies which forces the average citizen to venture out to find a job.  These flows of migrating laborers often represent a major source of income and provide inexpensive source of labor for their adopted countries.  For corporations to be outsourcing their labor workers and taking advantage or their determination and will to work is a depressing.  America is the main culprit for abusing their power to build where they please resulting in their ability to pretty much run the world.  Even though, ironically enough America is the one suffering from the biggest debt.

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