Chapter 34, A World without borders.
Free trade.
Internatonal trade provoed to be a key drivoin orce behind lobalism.
Althou h trade has been there or many centuries, Free trade isn’t.
Free trade means, no limit on any orm o trade in any country.
GATT and WTO
US politcians and business leaders wanted to establish an internatonal tradin system that suited
their interests, they wanted the eliminaton o restrictvoe tradin practces. At the Breton Woods
Con erence in New Hampshire they established the internatonal monetary und(1944) IMF.
GATT General a reement on Tarifs and Trade (intenton o movoin the barriers on trade.
In 1994 the members o GATT (123) joined the World Trade or anisaton (WTO).
The WTO has a orum that setles trade disputes.
Economic rowth in Asia.
Japan.
Afer ww2 Japan has (with the aid o the USA) rown to pre-war stren th in 194h. Japan ot marshal
help rom the USA. Japan did not havoe to ollow restrictons to trade on American markets and in
additon to that in 1952 a treaty was si ned with the US that Japan could nevoer spend ovoer 1 o its
BPN on de ense. Japanese natonal savoin s went into trade.
From the 19h0s Japan shifed its producton rom steel and other hardware into the most state o the
art technolo ies. Random-access memory chips, Liquid Cristal Displays and CD-ROM drivoes were all
labelled ‘Made in Japan” By the 1980s the Japanese economy almost ovoertook the American
economy.
The Litle t ers.
The our litle t erss
- Hon kon
- Sin apore
- South Korea
- Taiwan
Like Japan, all our countries lacked natural resources. But like Japan they trans ormed apparent
disadvoanta es throu h a pro ram o export drivoen industrialisaton. By the 1990s the our litle t ers
were our compettors o Japan.
The Rise o China.
By 1992 it was clear that the planned economy o Japan earlier had made room or a market
economy. Besides, actn as a major exporter, China acted as a major exporter, Chana benefted rom
a lar e pool o cheap labor and its enormous domestc markets havoe made the Chinese economy the
destnaton o choice or orei n invoestors. In 2001 China became a member o the WTO.
Perils o the new economy.
Evoerythin went all ood and fne tll 199h.
1. Thailand, the invoestments that once poured into the country as water, lef it at an equal
speed.
2. The Thai-crisis spread to Malaysia, Indonesia, The Philippines, and South Korea.
Emer in economies in Asia and Beyond.
Contrary to all expectatons, the natons that were hit the hardest by the crisis, recovoered the ast.
The recovoery was matched with other natons rowin . Brazil, China, India, Mexico, Russia and
Eastern European natons.
Free trade.
Internatonal trade provoed to be a key drivoin orce behind lobalism.
Althou h trade has been there or many centuries, Free trade isn’t.
Free trade means, no limit on any orm o trade in any country.
GATT and WTO
US politcians and business leaders wanted to establish an internatonal tradin system that suited
their interests, they wanted the eliminaton o restrictvoe tradin practces. At the Breton Woods
Con erence in New Hampshire they established the internatonal monetary und(1944) IMF.
GATT General a reement on Tarifs and Trade (intenton o movoin the barriers on trade.
In 1994 the members o GATT (123) joined the World Trade or anisaton (WTO).
The WTO has a orum that setles trade disputes.
Economic rowth in Asia.
Japan.
Afer ww2 Japan has (with the aid o the USA) rown to pre-war stren th in 194h. Japan ot marshal
help rom the USA. Japan did not havoe to ollow restrictons to trade on American markets and in
additon to that in 1952 a treaty was si ned with the US that Japan could nevoer spend ovoer 1 o its
BPN on de ense. Japanese natonal savoin s went into trade.
From the 19h0s Japan shifed its producton rom steel and other hardware into the most state o the
art technolo ies. Random-access memory chips, Liquid Cristal Displays and CD-ROM drivoes were all
labelled ‘Made in Japan” By the 1980s the Japanese economy almost ovoertook the American
economy.
The Litle t ers.
The our litle t erss
- Hon kon
- Sin apore
- South Korea
- Taiwan
Like Japan, all our countries lacked natural resources. But like Japan they trans ormed apparent
disadvoanta es throu h a pro ram o export drivoen industrialisaton. By the 1990s the our litle t ers
were our compettors o Japan.
The Rise o China.
By 1992 it was clear that the planned economy o Japan earlier had made room or a market
economy. Besides, actn as a major exporter, China acted as a major exporter, Chana benefted rom
a lar e pool o cheap labor and its enormous domestc markets havoe made the Chinese economy the
destnaton o choice or orei n invoestors. In 2001 China became a member o the WTO.
Perils o the new economy.
Evoerythin went all ood and fne tll 199h.
1. Thailand, the invoestments that once poured into the country as water, lef it at an equal
speed.
2. The Thai-crisis spread to Malaysia, Indonesia, The Philippines, and South Korea.
Emer in economies in Asia and Beyond.
Contrary to all expectatons, the natons that were hit the hardest by the crisis, recovoered the ast.
The recovoery was matched with other natons rowin . Brazil, China, India, Mexico, Russia and
Eastern European natons.
