Globalized Economy
Unit 9: c. 1900-Present
Main Ideas:
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Many governments promoted free-market economics → Allowed for many multinational corporations & regional trade agreements
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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:
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Many nations promoted free-market economics to spur economic growth
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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
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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
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Many regional trade agreements established tariff-free trade within a region
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NAFTA is a free-trade agreement in US, Canada, and Mexico
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ASEAN is a free-trade agreement between Southeast Asian Countries
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WTO (World Trade Organization) is an international org that manages international tariffs
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Many multinational corporations took advantage of regional free-trade agreements to operate in multiple countries without paying significant tariffs
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Nissan, Coca-Cola, McDonalds, etc.
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Industrial Economy
Industrial Manufacturing Shifted from the Western World to Asia & Latin America
Key Ideas:
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Industrial manufacturing shifted from US & Europe → Asia & Latin America
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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
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Some Latin American countries (Mexico, Honduras, etc.) also adopted industrial economies
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Former industrial regions like US & Western Europe adopted more tech & information economies
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