Globalized Economy

Unit 9: c. 1900-Present

Main Ideas:

  • Many governments promoted free-market economics → Allowed for many multinational corporations & regional trade agreements

  • Industrial manufacturing shifted from US & Europe → Asia & Latin America (esp. Japan & China)

Free-Market Economics

End of Cold War → Many Nations Promoted Free-Market Economics 

Key Ideas:

  • Many nations promoted free-market economics to spur economic growth

    • In the US, Ronald Reagan promoted supply-side economics, where the gov lowers taxes & interest rates → Allows people to invest more to spur economic growth

    • Other nations adopted similar free-market economic policies

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  • The rise of free-market economies allowed for many multinational corporations to operate & allowed for regional trade agreements

    • Many regional trade agreements established tariff-free trade within a region

      • NAFTA is a free-trade agreement in US, Canada, and Mexico​

      • ASEAN is a free-trade agreement between Southeast Asian Countries

      • WTO (World Trade Organization) is an international org that manages international tariffs

    • Many multinational corporations took advantage of regional free-trade agreements to operate in multiple countries without paying significant tariffs

      • Nissan, Coca-Cola, McDonalds, etc.​

Industrial Economy

Industrial Manufacturing Shifted from the Western World to Asia & Latin America 

Key Ideas:

  • Industrial manufacturing shifted from US & Europe → Asia & Latin America

    • Many East Asian Countries (known as the "Little Tigers") such as Japan, South Korea, Taiwan, Hong Kong, and Singapore, adopted export-oriented industrial economies → Huge economic growth

    • Some Latin American countries (Mexico, Honduras, etc.) also adopted industrial economies

    • Former industrial regions like US & Western Europe adopted more tech & information economies​​