Globalization & Technology - Complete Interactive Lesson
Part 1: Core Concepts
Globalization & Technology After 1900
Part 1 of 7 — Core Concepts
| Section |
|---|
| Defining globalization: economic, cultural, political dimensions |
| The Bretton Woods order (1944): IMF, World Bank, GATT |
| The information revolution, from the transistor to the Web |
| Why technological change accelerated after 1945 |
Key idea: Globalization after 1945 was not the first global integration (the Silk Roads, the Atlantic system, and the 1870–1914 wave came before it), but it was the deepest. It rested on three pillars: U.S.-led economic institutions, ever-cheaper transportation and communications, and multinational corporations operating across borders. The exam's short-answer and document-based questions cover developments through 2001, so this lesson runs to 2001.
Defining Globalization
| Dimension | Examples |
|---|---|
| Economic | Cross-border trade, foreign direct investment, multinational supply chains, currency markets |
| Cultural | Global media (Hollywood, Bollywood, the BBC), English as a common language of business, global brands, the Olympics and the World Cup |
| Political | International organizations (UN, WTO, IMF, World Bank), NGOs (Amnesty International, Greenpeace), trade blocs (EU, NAFTA, ASEAN) |
| Technological | Container shipping (1956), communications satellites (1962), cellular phones (1980s–90s), the internet (1990s) |
| Demographic | Labor migration, refugee flows, brain drain, rapid growth of cities |
The Bretton Woods Order (1944)
In July 1944, before World War II had ended, delegates from 44 Allied nations met at Bretton Woods, New Hampshire, to design the postwar economic order. The conference created both the IMF and the World Bank, which began operating in 1945–46.
| Institution | Created | Purpose |
|---|---|---|
| International Monetary Fund (IMF) | 1944 (Bretton Woods) | Stabilize exchange rates; lend to countries with balance-of-payments crises |
| International Bank for Reconstruction and Development (World Bank) | 1944 (Bretton Woods) | Finance European reconstruction; later, development lending to poorer countries |
| General Agreement on Tariffs and Trade (GATT) | 1947 | Negotiate step-by-step tariff reductions through "rounds" |
| World Trade Organization (WTO) | 1995 | Successor to GATT, with binding dispute settlement and a broader scope |
- Key rule of the original system: Currencies were pegged to the U.S. dollar, and the dollar was pegged to gold at $35 per ounce. This held until 1971, when President Nixon ended dollar-gold convertibility (the "Nixon Shock").
Concept Check — Bretton Woods
The Information Revolution
KC-6.1.I.A: "New modes of communication—including radio communication, cellular communication, and the internet—as well as transportation, including air travel and shipping containers, reduced the problem of geographic distance."
| Year | Breakthrough | Significance |
|---|---|---|
| 1920s | Commercial radio broadcasting | News and music reach mass audiences instantly |
| 1947 | Bell Labs invents the transistor | Foundation of later electronics |
| 1958 | The Boeing 707 jet airliner enters regular service | Faster, cheaper long-distance air travel begins |
| 1962 | Telstar, the first satellite to relay live television across the Atlantic | Live television across the Atlantic |
| 1969 | ARPANET, a U.S. defense-funded network, sends its first message | Precursor to the internet |
| 1971 | Intel 4004 microprocessor | A computer on a single chip |
| 1980s–90s | Cellular phone networks spread | Communication without wires, first in wealthy countries, then worldwide |
| 1989 | Tim Berners-Lee proposes the World Wide Web at CERN | Hypertext on the internet |
| 1990s | Commercial web and e-commerce (Amazon and eBay in 1995, Alibaba in 1999) | Online commerce crosses borders |
Term Sprint — Globalization institutions and tools
Why Technological Change Accelerated After 1945
| Driver | Mechanism |
|---|---|
| Cold War defense research | Government funding for ARPANET, satellites, jet engines and computing; much of it later moved into civilian use |
| University expansion | The GI Bill in the United States; postwar university growth in Europe and East Asia |
| Falling transportation costs | Containerization (1956 onward) and jet aircraft cut the cost of moving goods and people |
| Falling communication costs | Satellites, undersea cables, then the internet |
| Cheap energy | KC-6.1.I.D: petroleum and nuclear power "raised productivity and increased the production of material goods" |
Energy in brief: Oil replaced coal as the leading fuel for transport and much of industry after World War II, and the first nuclear power stations opened in the 1950s. The 1973 oil embargo showed how dependent industrial economies had become on imported petroleum.
- Key takeaway: When a prompt asks why globalization accelerated after 1945, give a two-part answer: an institutional framework (Bretton Woods, GATT) plus technologies that made distance cheaper (containers, jets, satellites, computing).
Applied AP Practice — Why globalization accelerated
Part 2: Key Processes
Globalization & Technology After 1900
Part 2 of 7 — Key Processes
| Section |
|---|
| Multinational corporations and global supply chains |
| Free trade agreements: the EU, ASEAN, NAFTA, the WTO |
| Floating currencies and financial globalization after 1971 |
| Foreign direct investment and offshoring |
Key idea: After 1971 the world economy reorganized around floating exchange rates, multinational corporations and globally distributed supply chains. Production was unbundled: design in one country, components in several others, assembly in another, and sales everywhere. KC-6.3.I.E describes the result: knowledge economies grew in some regions "while industrial production and manufacturing were increasingly situated in Asia and Latin America."
Multinational Corporations (MNCs)
| Period | MNC pattern |
|---|---|
| Before 1945 | Firms controlled raw materials abroad: oil, rubber, bananas |
| 1945–1980 | Firms either exported from home (Sony) or built separate factories in each major market to serve local customers (Ford, Nestlé); production was not yet split into cross-border supply chains |
| 1980–2001 | Global supply chains: a computer designed in California could be assembled in China from parts made in South Korea, Taiwan and Japan, then sold worldwide |
CED Topic 9.4 names Nestlé (Switzerland), Nissan (Japan) and Mahindra and Mahindra (India) as examples of multinationals; the list is a reminder that MNCs were not only American.
Major Free Trade Agreements
| Agreement | Year | Members | Significance |
|---|---|---|---|
| European Economic Community / EU single market | 1957 / 1993 | Western European states | Customs union, then a single market with free movement of goods, capital and labor |
| ASEAN | 1967 | Southeast Asian states | Founded partly as an anti-communist grouping; later focused on economic cooperation |
| Maastricht Treaty | 1992 | EU members | Created the European Union and planned the euro (launched in 1999 for banking and financial markets) |
| NAFTA | 1994 | United States, Canada, Mexico | Trilateral free trade in North America |
| WTO | 1995 | Founding agreement concluded by the 123 governments of the Uruguay Round in 1994 | Binding global trade rules; China joined in 2001 |
Concept Check — MNCs and trade blocs
Floating Currencies and Financial Globalization After 1971
| Feature | Description |
|---|---|
| Floating exchange rates | After the Nixon Shock of 1971, major currencies floated against the dollar |
| Petrodollar recycling | After the 1973 oil shock, oil exporters deposited their dollar earnings in Western banks, which lent them on, often to developing countries |
| Latin American debt crisis | In 1982 Mexico could not repay its loans; the IMF lent money on condition of spending cuts and market reforms |
| Capital account liberalization | In the 1980s and 1990s most major economies dismantled controls on moving money across borders |
| Asian financial crisis | In 1997 short-term foreign capital fled Thailand, Indonesia and South Korea; currencies collapsed and the IMF imposed austerity conditions |
Foreign Direct Investment and Offshoring
| Period | Pattern |
|---|---|
| 1960s–70s | U.S. firms opened European subsidiaries; Japanese automakers opened U.S. plants in the 1980s |
| From 1965 | Mexico's Border Industrialization Program created maquiladoras, assembly plants near the U.S. border that imported parts duty-free and exported finished goods; they multiplied after the 1982 debt crisis and again after NAFTA (1994) |
| 1980s–90s | Export processing zones spread across Asia; China's special economic zones drew foreign investment |
| 1990s | Services began to move too: Indian software firms in Bangalore worked for clients in the United States and Europe |
Who gained and who lost: Consumers gained cheaper goods; workers in Mexico, China and Southeast Asia gained factory jobs, often at low wages; workers in older industrial regions of the United States and Europe lost jobs; shareholders gained higher returns. AP rewards answers that separate these groups.
Match each development to the decade it belongs to.
Putting the Processes Together
The three processes reinforced each other. Floating currencies and open capital markets let money move quickly to wherever production was cheapest; trade agreements lowered the tariffs on goods crossing borders; and multinationals used both to build supply chains that ran through Mexico, China and Southeast Asia. The same openness made economies vulnerable: when foreign lenders pulled money out of Mexico in 1994 or East Asia in 1997, crises spread from one country to its neighbors.
- Key takeaway: Post-1971 globalization rested on three linked processes: multinational supply chains, regional and global trade rules, and a dollar-based financial system with mobile capital.
Applied AP Practice — Effects of integration
Part 3: Patterns & Examples
Globalization & Technology After 1900
Part 3 of 7 — Patterns & Examples
| Section |
|---|
| The Asian Tigers and China after 1978 |
| The Green Revolution and its critics |
| Cultural globalization: film, music, sport and brands |
Key idea: AP prompts on globalization reward specific cases. Learn three: the Asian Tigers (state-led export growth), China after 1978 (Deng Xiaoping's reforms through WTO entry in 2001), and the Green Revolution (technology that fed a growing population at an environmental cost). All three show state policy, technology and world markets combining to produce uneven outcomes.
The Asian Tigers (1960s–1990s)
| Tiger | Strategy | Result |
|---|---|---|
| South Korea | Park Chung-hee's export-led plans from 1962; family conglomerates (chaebol) such as Samsung and Hyundai | Rose from one of the poorest countries in Asia in 1960 to an industrial exporter by the 1990s |
| Taiwan | Land reform; export-processing zones; a semiconductor industry (TSMC founded 1987) | Became a leading maker of computer chips |
| Hong Kong | British colony until 1997; free port and financial center | Returned to China in 1997 under "one country, two systems" |
| Singapore | Lee Kuan Yew's state-led development; English-language education | One of the world's busiest ports and a financial hub |
China After 1978
| Year | Event | Significance |
|---|---|---|
| 1978 | Deng Xiaoping launches "Reform and Opening" | Farming decollectivized; private enterprise allowed |
| 1980 | Shenzhen becomes a special economic zone | A fishing town becomes a manufacturing city open to foreign investment |
| 1989 | Tiananmen Square crackdown | Economic reform continues; political opening is reversed |
| 1992 | Deng's "Southern Tour" | Reaffirms market reforms after a conservative backlash |
| 2001 | China joins the WTO | Completes China's integration into rules-based world trade |
- Result: Hundreds of millions of people in China left extreme poverty in the two decades after 1980, the largest such reduction in history, while coastal provinces grew far richer than the interior.
Concept Check — Tigers and China
The Green Revolution and Its Critics
KC-6.1.I.B: "The Green Revolution and commercial agriculture increased productivity and sustained the earth's growing population as it spread chemically and genetically modified forms of agriculture."
| Element | Description |
|---|---|
| Norman Borlaug's wheat (1940s–60s) | High-yield, disease-resistant varieties bred in Mexico |
| Spread to India and Pakistan (1960s) | Wheat harvests rose sharply and feared famines were averted |
| IR8 rice (1966) | A high-yield "miracle rice" from the International Rice Research Institute in the Philippines |
| Costs | Heavy use of fertilizer, pesticides and irrigation water; benefits went mainly to farmers who could afford the inputs; fewer crop varieties planted |
Term Sprint — Globalization cases
Cultural Globalization
KC-6.3.IV.ii–iii: arts, entertainment and popular culture "increasingly reflected the influence of a globalized society," and consumer culture "became globalized and transcended national borders." The CED's examples include reggae, Bollywood, the BBC, World Cup soccer, the Olympics, Toyota and Coca-Cola.
| Domain | Pattern |
|---|---|
| Film | Hollywood dominant from the 1920s; by the late 20th century India's film industry, with Bollywood as its Hindi-language center, produced more films each year than Hollywood and drew audiences across Asia, Africa and the Middle East |
| Music | Jamaican reggae (Bob Marley in the 1970s) spread worldwide; American rock and pop traveled the other way |
| Television | The BBC World Service and satellite channels carried news and programs across borders |
| Sport | The Olympics and the FIFA World Cup became worldwide television events |
| Brands | Coca-Cola, McDonald's and Toyota became recognizable everywhere |
- Key takeaway: Cultural flows ran in more than one direction. Hollywood and Coca-Cola spread outward from the United States, but Bollywood and reggae show global culture coming from non-Western centers too. An answer that treats cultural globalization as purely "Americanization" misses half the evidence.
Applied AP Practice — Uneven outcomes
Part 4: Connections & Interactions
Globalization & Technology After 1900
Part 4 of 7 — Connections & Interactions
| Section |
|---|
| Mass migration: labor migrants, refugees, brain drain |
| Diasporas and remittances |
| Resistance to globalization (Topic 9.7) |
| Disease in a connected world |
Key idea: Globalization moved people, diseases, ideas and protests across borders, not just goods and money. AP prompts often ask how migration and disease reshaped societies, and how movements organized across borders to challenge the globalization model itself.
Mass Migration After 1945
| Type | Examples |
|---|---|
| Labor migration | Turks, Italians, Greeks and Yugoslavs to West Germany (the Gastarbeiter program, from 1961 for Turkey); Mexicans to the United States (the Bracero program, 1942–64, and later migration); South Asians and Filipinos to the Persian Gulf states after the 1970s oil boom |
| Refugee flows | Palestinians (1948); Vietnamese "boat people" (from 1975); Afghans (from 1979); Rwandans (1994); people fleeing the Yugoslav wars (1990s) |
| Postcolonial migration | West Indians to Britain (the "Windrush generation," from 1948); Algerians to France; Indonesians to the Netherlands |
| Brain drain | Indian engineers to the United States; African doctors to Britain and Canada |
Why migrants followed old ties: Many migrants moved to the former colonial power, whose language they spoke and where they had legal rights to enter. The CED notes that migrants often kept "cultural and economic ties between the colony and the metropole even after the dissolution of empires."
Concept Check — Migration
Diasporas and Remittances
- A diaspora is a community living outside its homeland. Migrants sent remittances, money sent home to families, which by the late 1990s were a major source of income for countries such as India, Mexico and the Philippines.
- Remittances paid for food, schooling and housing, and in some countries they brought in more foreign currency than exports of any single product.
Resistance to Globalization (Topic 9.7)
KC-6.3.IV.iv: "Responses to rising cultural and economic globalization took a variety of forms." The CED names anti-IMF and anti-World Bank activism as examples.
| Event | Year | Significance |
|---|---|---|
| Caracazo riots, Venezuela | 1989 | Protests against fuel-price rises and austerity tied to an IMF agreement |
| Zapatista uprising, Mexico | 1994 | Indigenous rebels in Chiapas rose up on January 1, the day NAFTA took effect |
| "Battle of Seattle" | 1999 | Tens of thousands of union members, environmentalists and indigenous-rights activists disrupted a WTO meeting |
| World Social Forum, Porto Alegre | 2001 | Activists met under the slogan "Another world is possible" |
| Genoa G8 protests | 2001 | Mass protests at a summit of leading industrial nations; one protester was killed by police |
Match each migration flow to its main destination.
Disease in a Connected World
| Disease | Years | Connection |
|---|---|---|
| Influenza | 1918–19 | Wartime troop movements and shipping carried it worldwide |
| HIV/AIDS | From 1981 | Travel and migration spread it to every continent; by 2001 tens of millions had been infected |
| Cholera | From 1961 | A pandemic beginning in Indonesia reached Latin America in 1991 |
-
The paradox: The air travel, shipping and migration that integrated the world economy were the same networks that turned regional outbreaks into worldwide epidemics.
-
Key takeaway: Connections prompts reward specific cases (the Windrush generation, the Battle of Seattle, HIV/AIDS) rather than general statements about "global integration."
Applied AP Practice — Connections
Part 5: Change Over Time
Globalization & Technology After 1900
Part 5 of 7 — Change Over Time
| Section |
|---|
| Three phases of post-1945 globalization, 1945–2001 |
| Phase 1 (1945–1971): Bretton Woods, welfare states, decolonization |
| Phase 2 (1971–1991): floating currencies and the free-market turn |
| Phase 3 (1991–2001): integration after the Cold War |
| What stayed the same and what changed |
Key idea: Continuity-and-change prompts on globalization are won by students who divide the period into clear phases and name what stayed the same across them. This scheme ends in 2001, the end point of the exam's short-answer and document-based questions.
Phase 1 (1945–1971): "Embedded Liberalism"
| Feature | Description |
|---|---|
| Monetary order | Fixed exchange rates anchored to a dollar convertible into gold |
| Trade | GATT rounds steadily lowered tariffs on manufactured goods |
| Capital flows | Tightly regulated; capital controls were common |
| State role | Strong: welfare states and full-employment goals in Western Europe and North America |
| Decolonization | Most of Asia and Africa won independence |
Phase 2 (1971–1991): The Free-Market Turn
KC-6.3.I.D: "In a trend accelerated by the end of the Cold War, many governments encouraged free-market economic policies and promoted economic liberalization in the late 20th century." The CED's examples are Reagan, Thatcher, Deng Xiaoping and Pinochet.
| Feature | Description |
|---|---|
| Monetary order | Floating exchange rates after the Nixon Shock (1971); petrodollar recycling after the 1973 oil shock |
| State role | Thatcher (from 1979) and Reagan (from 1981) cut taxes, deregulated and privatized; Pinochet's Chile adopted free-market policies after 1973 |
| China | Deng Xiaoping's reforms from 1978 |
| Developing world | The Latin American debt crisis (1982); IMF structural adjustment programs required spending cuts and market reforms |
| End | The fall of the Berlin Wall (1989) and the Soviet collapse (1991) removed the main alternative economic model |
Concept Check — The first two phases
Phase 3 (1991–2001): Integration After the Cold War
| Feature | Description |
|---|---|
| Trade | NAFTA (1994) and the WTO (1995); China joins the WTO in 2001 |
| Capital | Money moves freely across most borders; the Mexican peso crisis (1994) and the Asian financial crisis (1997) show the risks |
| Technology | The internet, cellular phones and e-commerce spread worldwide |
| Former communist states | Russia and Eastern Europe adopt market economies, often through rapid privatization |
| Backlash | The Zapatista uprising (1994), anti-IMF protests, and the Battle of Seattle (1999) |
Match each group of events to its phase.
Continuities Across All Three Phases
| Continuity | Evidence |
|---|---|
| U.S. dollar as the leading reserve currency | Pegged to gold under Bretton Woods, then floating after 1971, but still dominant in 2001 |
| Western-led institutions | The UN, IMF, World Bank and NATO survived every phase; GATT was replaced by the WTO, not abandoned |
| Rising trade | World trade grew faster than world output in most years |
| Gaps between regions | Narrowed in East Asia but persisted in much of Africa |
Major Changes Across Phases
| Change | From → To |
|---|---|
| Exchange rates | Fixed (1945–71) → floating (after 1971) |
| State role | Strong welfare states and capital controls → deregulation and privatization (1980s on) |
| Trade scope | Manufactured goods (early GATT) → services, intellectual property and agriculture (WTO) |
| China | A closed Maoist economy before 1978 → a major exporter that joined the WTO in 2001 |
| Information | Print, radio and television → satellites, cellular phones and the internet |
- Key takeaway: Each phase had its own monetary regime, trade pattern and leading economic ideas, while the dollar, Western-led institutions and growing trade connected them.
Applied AP Practice — CCOT writing
Part 6: Problem-Solving Workshop
Globalization & Technology After 1900
Part 6 of 7 — Problem-Solving Workshop
| Section |
|---|
| HIPP for documents about globalization |
| Document bank: the GATT preamble, the Marrakesh Agreement, the Zapatistas' declaration, Stiglitz's "Globalization and Its Discontents" |
| AP SAQ structure for globalization prompts |
| Common AP traps to avoid |
Key idea: Globalization documents come from a clear position: technocratic designers of the system, people resisting it, or critics who once worked inside it. Sourcing the author's position is the highest-value AP move on these prompts.
HIPP for Globalization Documents
| Letter | Question | Globalization application |
|---|---|---|
| Historical situation | What was happening when this was produced? | Just after World War II? The debt crises of the 1980s? Just after NAFTA or the 1997 Asian crisis? |
| Intended audience | Who was this for? | Trade negotiators? A national public? The international press? |
| Purpose | What was the author trying to do? | Build the system? Resist it? Reform it from within? |
| Point of view | What position is the author writing from? | Governments? An indigenous rebel movement? A former insider? |
Document Bank
1. General Agreement on Tariffs and Trade, preamble (1947) "...entering into reciprocal and mutually advantageous arrangements directed to the substantial reduction of tariffs and other barriers to trade and to the elimination of discriminatory treatment in international commerce."
- HIPP: Signed by 23 countries two years after World War II, when leaders blamed the high tariffs of the 1930s for deepening the Depression; intended audience is the signatory governments; purpose is to lower tariffs step by step through negotiation; point of view is that of mostly Western governments, led by the United States, rebuilding the world economy.
2. Marrakesh Agreement Establishing the World Trade Organization, preamble (1994) "Resolved, therefore, to develop an integrated, more viable and durable multilateral trading system..."
- HIPP: Concluded by the 123 governments of the Uruguay Round, about two years after the Soviet collapse; intended audience is the international trade-policy community; purpose is to replace GATT with a permanent organization that has binding dispute settlement; point of view is technocratic, multilateral and rules-based.
Concept Check — Sourcing the founding documents
3. Zapatista Army of National Liberation (EZLN), First Declaration of the Lacandon Jungle (January 1, 1994) "Today we say enough is enough!"
- HIPP: Issued as indigenous rebels seized towns in Chiapas, Mexico, on the day NAFTA took effect (the declaration itself focuses on land, poverty and the Mexican government rather than on NAFTA by name); intended audience is the Mexican public and, through the press, the world; purpose is to win support for indigenous rights and against the government's free-market policies; point of view is that of poor indigenous farmers in southern Mexico.
4. Joseph Stiglitz, "Globalization and Its Discontents" (2002), a later account of the 1990s "Decisions were made on the basis of what seemed a curious blend of ideology and bad economics..."
- HIPP: Written by a Nobel Prize–winning economist who had been the World Bank's chief economist (1997–2000) during the Asian financial crisis; intended audience is policymakers and the informed public; purpose is to criticize IMF conditions imposed on developing countries in the 1990s; point of view is that of an insider critic of the institutions he had served. Published just after the course's 2001 endpoint, it is a secondary account: use it as an interpretation of 1990s events, the way you would use a historian's argument, not as evidence of anything that happened after 2001.
AP SAQ Structure (3 parts)
- A. Identify one specific feature of post-1945 globalization
- B. Explain how it contributed to an outcome (growth, inequality, integration, or backlash)
- C. Explain a contrast with another phase, or a contrasting interpretation
Common AP Traps
| Trap | Why it costs points |
|---|---|
| Calling globalization simply "good" or "bad" | AP rewards analysis of winners and losers |
| Treating globalization as new after 1945 | The 1870–1914 wave also had high trade and migration |
| Saying "the internet caused globalization" | The internet sped up trends that began with Bretton Woods, GATT and container shipping decades earlier |
| Quoting documents without sourcing them | The sourcing point requires HIPP |
| Ignoring China | China's post-1978 reforms are among the largest globalization stories of the period |
Match each fact to the HIPP element it most directly supports.
Model SAQ Response
Prompt: Identify ONE feature of post-1945 globalization, and explain how it contributed to economic integration.
Response: Containerization, introduced in 1956, standardized cargo so that steel boxes moved straight from ships to trains and trucks. By cutting port handling costs and theft, it made it cheap to ship parts and finished goods across oceans, which allowed firms to build supply chains that ran through Asia and Latin America after 1980.
- Why it scores: It names a specific feature with a date, explains the mechanism (lower handling costs), and ties it to the outcome the prompt asks about (integration through supply chains).
Applied AP Practice — Sourcing and argument
Part 7: AP Review
Globalization & Technology After 1900
Part 7 of 7 — AP Review
| Section |
|---|
| High-yield dates and one-line significance |
| Comparing the three phases, 1945–2001 |
| Defenders and critics |
| Sprint terms |
Key idea: Use this part as your night-before-the-exam reference for globalization and technology through 2001. Drill the dates, the comparisons and the AP skills.
High-Yield Dates
| Year | Event | One-line significance |
|---|---|---|
| 1944 | Bretton Woods Conference creates the IMF and World Bank | Designs the postwar economic order |
| 1947 | GATT signed; transistor invented | Tariff reduction and the electronics revolution begin |
| 1956 | First container ship voyage (Malcom McLean) | Containerization era begins |
| 1957 | Treaty of Rome creates the European Economic Community | European integration begins |
| 1962 | Telstar communications satellite | Live television across the Atlantic |
| 1965 | Mexico's Border Industrialization Program | The first maquiladoras |
| 1969 | ARPANET sends its first message | Precursor to the internet |
| 1971 | Nixon ends dollar-gold convertibility | Bretton Woods exchange-rate system ends |
| 1973 | OPEC oil embargo | Oil shock; petrodollar recycling begins |
| 1978 | Deng launches Reform and Opening | China's market reforms begin |
| 1979 | Thatcher elected | The free-market turn begins in Britain |
| 1982 | Latin American debt crisis | IMF structural adjustment spreads |
| 1989 | Berlin Wall falls; World Wide Web proposed | End of the Cold War division; the web is born |
| 1994 | NAFTA takes effect; Zapatista uprising | North American free trade and resistance to it |
| 1995 | WTO founded | Successor to GATT with binding rules |
| 1997 | Asian financial crisis | The risks of mobile capital |
| 1999 | Battle of Seattle | Mass protest against the WTO |
| 2001 | China joins the WTO | China completes its integration into world trade |
Comparing the Phases
| Question | Phase 1 (1945–71) | Phase 2 (1971–91) | Phase 3 (1991–2001) |
|---|---|---|---|
| Exchange rates | Fixed, dollar-gold | Floating | Floating; the euro launched in 1999 |
| Capital flows | Tightly controlled | Liberalizing | Largely free |
| State role | Strong welfare states | Retrenching (free-market turn) | Market reforms spread to former communist states |
| Big winners | Western Europe and Japan rebuild | Oil exporters; the Asian Tigers | China; East Asian exporters; technology firms |
| Crises | Suez (1956) | The 1982 debt crisis; the Soviet collapse | The 1994 peso crisis; the 1997 Asian crisis |
Concept Check — High-yield recall
Defenders and Critics
| Question | Defenders | Critics (Stiglitz, anti-globalization movements) |
|---|---|---|
| Trade | Mutual gains; growth lifted hundreds of millions out of poverty, especially in East Asia | Hollowed out manufacturing in older industrial regions |
| Capital | Money flows to its most productive uses | Sudden outflows caused crises (Mexico 1994, East Asia 1997) |
| Culture | Exchange spreads ideas and choices | Homogenization and loss of local traditions |
| Institutions | The IMF, World Bank and WTO make cooperation possible | Their conditions overrode the choices of elected governments |
Sprint Terms
- Bretton Woods — 1944 conference that created the IMF and World Bank
- GATT / WTO — tariff-reduction agreement (1947) and its 1995 successor
- Nixon Shock — 1971 end of dollar-gold convertibility
- Containerization — standardized cargo boxes (from 1956) that cut shipping costs
- Multinational corporation — a firm operating in many countries (Nestlé, Nissan, Mahindra and Mahindra)
- Maquiladora — a Mexican export-assembly plant near the U.S. border, first created under the 1965 Border Industrialization Program and expanded after NAFTA
- Reform and Opening — Deng Xiaoping's 1978 program of market reforms
- Asian Tigers — South Korea, Taiwan, Hong Kong and Singapore
- Structural adjustment — IMF and World Bank loan conditions requiring spending cuts and market reforms
- Remittances — money sent home by migrant workers
- Battle of Seattle — 1999 protests against the WTO
- Zapatistas — indigenous rebels in Chiapas who rose up as NAFTA took effect in 1994
Final Term Sprint — High-yield recall
Putting It Together
Post-1945 globalization was built on deliberate institutional design (Bretton Woods, GATT, the WTO) and on technologies that made distance cheap (containers, jets, satellites, computing). It produced dramatic gains, above all in East Asia, and real losses in older industrial regions and in debt-burdened developing countries, and it provoked resistance from Chiapas to Seattle.
- Key takeaway: For any evaluation prompt, name a cause from institutions, a cause from technology, a group that gained, and a group that lost.
Applied AP Practice — Final drill