UNIVERSITY OF ESSEX
DEPARTMENT OF ECONOMICS
SESSION 2014–15
EC120 The World Economy in Historical Perspective Term Paper 2
By George Estephane: 1304052
Describe the steps taken in Western Europe during the two decades after 1945 to foster international trade. Assess the role of trade in Western Europe’s recovery from depression and war, making clear how relevant economic theories can be applied to support your assessment.
This essay will focus on the measures Western Europe undertook in order to adopt and nurture international trade throughout the period 1945-1965. One will seek to assess the extent to which these steps were successful in achieving this, as well as classifying the importance of trade in the recovery from depression and war in Western Europe.
The aftermath of the Second World War had left the economies of the ‘old great’ powers exhausted. Western European countries had
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To do this, we also need to look at international trade in the context of economic development as a whole. This is achieved by focusing not only on how international trade helped recovery, but also looking at how other factors contributed to Western Europe’s recovery from war and depression.
The GATT has played a critical role in encouraging nations, particularly in Western Europe, to trade. The GATT freed Europe’s regional and international trade from tariffs, quotas and other forms of trade barriers, and has often been hailed as a key factor in stimulating the post-war economic recovery, and preventing a return to the catastrophe of the interwar period. Despite various weaknesses, the GATT succeeded in establishing commitments among major countries that would help create a stable environment for world trade that fostered the post-war rise in trade and
In this case, this gave Europe access to exports that they could take advantage of and use for themselves to expand their nations,
APUSH Unit 2 Long Essay In 1603, the English were still a small rising nation, poorer than most, and less powerful than Spain and France. Although the British colonies settled in the Americas late, they quickly became a dominant force in the new world. After they acquired their first permanent settlement in Jamestown, VA in 1607, the British became attracted to greater power and more land, which was the first building block of perhaps the most powerful European nation of the time period. Due to their growth in the Americas, the British were able to be compared to the Spanish colonies of the time period, which boosted the English’s confidence.
Thesis: From my understanding, during the process of the economy’s expansion; the reason for this, are due to, immigration and better opportunities. Immigrants, from Southern and Eastern Europe outnumbered cities, by over one to three million people. There were, of course, other reasons for this expansion; The laissez-faire was the reason for this as well. They were the policy that wouldn’t deal with free trade, free enterprise, as well as, marketing.
In the decade prior to World War One, Germany experienced massive growth in both their population and their economy which created needs outside of Germany's immediate capacity. They met the demand by increasing their imports substantially; from 1899-1913, Germany nearly doubled its imports. Trade is a prominent element in every political situation that impacts the outcome significantly. Trade governs our resources and therefore, our quality of life and style of living. The Allies employed a blockade that sought to restrict the resources of the Germany and Austria-Hungary, starving them into submission and depriving them of necessary resources.
After the War of 1812, it altered the North and turned into a business sector society in which support in long-separate trade modified people's desires and exercises. Included, European exchange to a great extent ended amid the war, business people put resources into household manufacturing plants. The change with economic development after the War of 1812 is also a very crucial and significant to American society. The begin of the Market Revolution happened in the early 19th century, many commerce and most Americans adapted to the Market Revolution, for example, the construction of roads, rails, and canals dramatically enhanced national mobility.
The war led to the destruction of much of Europe's infrastructure and resulted in significant economic losses. The war also led to significant inflation and the devaluation of many of the world's currencies. The war contributed to the rise of the United States as a global economic power, as it emerged from the war relatively unscathed and with a significant amount of economic power. The war also contributed to the rise of new economic systems, such as socialism and communism, which would have a significant impact on the world's economic systems in the years to
Meaning that the United States was trading with itself and when its economy went down, they had no help in making a swift rebound. One of the main issues that post World War I for the United States of America’s economy was the fact that they kept their massive military making it a massive money hole. UlteriorlyWorld War II however, President Truman learns from the past and cuts the size of the military down drastically. This allowed for an even greater economic time of prosperity during the 1950’s like in the twenties, although this difference is that due to moves like the downsizing of the military, there is no major economic depression succeeding a time of great prosperity. The United States of America made many moves to keep their economic prosperity while reducing the
To give a different outlook, President Roosevelt’s New Deal failed to bring the Great Depression to an end. The unemployment rates remained stagnant, and the economy was never properly stimulated to secure the private business and the banking sectors. Due to the importance of private business and banks in a free enterprise economy, the Federal neglect caused the United States to lag behind other nations in unemployment rates. Similarities were seen in France, primarily due to their social and economic policies causing their levels of industrial production to be lackluster (Best
This also orchestrated a fall of the worldwide GDP by 15%. The event is important since America still largely remains effected by its echoes. Unemployment remains to be 24% among the population as of 1933 and the stock market is down. However, with the levels of support growing for Franklin D. Roosevelt and his policies, America may be on the path to economic revival. ‘FDR’ seeks to pass huge amounts of economic and other reforms, together in a sense of a ‘new deal’.
These trades that occurred between Eastern Europe and Soviet Union further helped the recovery of the Soviet Union. This is highlighted; In the sense that the trades not only provided the USSR with resources but also with monetary gains; by getting finished goods from the nations of eastern Europe, they got goods that could be sold to other countries for gains or other needed resources, as highlighted with the soviet trade relationship with Africa, Latin
The economies of Europe after World War two were in shambles. Many countries were either in debt form fighting the war or had no economies form the devastation of war on the large scale it was carried out. As a result, most nations had to recover their economies from the shambles to one which could involve itself in the new global economy. In my opioon this recovery was primarily helped by the Marshall plan, foreign troops spending money, and less competition in the market. With Eastern Europe under the direct control of the Soviet Union, the countries under their control “could not trade” with any Western nation, especially ones currently occupied by the Westerner Allied forces.
Although there was a large period of significant technological development during the Interwar Period, it was also a large period of missed opportunity to further improve living standards across Europe and in the US. During WWI and the 1920’s there was a large shift towards greater production of consumer durables in new industries and a shift away from staple trades. This speed of this change in structure is thought to have made the market more vulnerable to instability, though has been recently questioned when compared to the speed of structural change was slower in the interwar period than after WWII during which no similar instability occurred. As a result it may be the nature of the structural change rather than the speed of said change
They provided profits, jobs, efficiencies of scale, lowered unit costs, and increased the variety of goods available for everyone to buy. trade would be the key to world peace, since states would be reluctant to let wars interfere with the mutual economic gain. It’s a grand idea that promises a more rational way of going about the world 's business, Counter-one less influenced by unilateral actions by nation states, including the use of force. Its potential to make armed conflicts much more devastating. Question the adequacy of the nation state in meeting the economic and security challenges of the new century.
And in the middle of the 1800-1914 in Britain was where “the first great age of globalization”, tough the leaders weren’t so “I am globalist” belief, tough they did convert to free trade and a gold standard as a “purely domestic benefit.”, or so. But after WWII, the knowledge of globalism changed to a different direction, different to that of trade, that of grand strategy, by drawing back it’s many sovereignties to international organizations instead, the country can itself and the world much stronger than its own solely interest, as the article quotes from President Henry Truman, year 1947, “If the nations can agree to observe a code of good conduct in international trade, they will cooperate more readily in other international affairs,” Ip, G.
Introduction The occurrence of radical events across the world led to the immediate change of economic, political, and social attributes. In other words, most of these events created new social and economic approaches that benefitted not only the concerned nations but also the entire world. Some of the most deliberated global revolutionary happenings are the World War I, Civil War, and World War II among other movements (Kissinger, 1994). From the perspective of international studies, the accounts of pre and post-World War I are considered to have played major parts in improving the economies of many nations.