Effects+of+major+global+economic+developments

=__Effects of Major Global Economic Developments__= __**The Great Depression**__

- The largest economic downturn for the world. a) Started in the United States with the fall of the Stock Market. b) Hit the rest of the world hard when the United States could no longer keep it's economy going. - International trade plummeted by 2/3. a) Both rich and poor countries were greatly affected. b) Countries lost the ability to import and export on a significant level. c) Almost every countries agricultural industry fell by 60% which led to a shortage of food for many countries. - Construction in every nation ceased. a) Countries could not afford to construct new things such as schools, hospitals, government buildings, factories, even farms were too expensive to maintain. b) Not having schools led to an increase of uneducated youth. Hospitals could not be staffed or well kept, so many people had to do without. Government buildings could not be maintained, so many politicians and leaders of nations were forced to resign. Factories could not acquire raw materials nor afford the labor of a workforce. Farms could not yield a sizable enough profit for them to beneficial to the economy, instead many people began farming for themselves and did not sell their crop. - Poverty was outstanding in many nations. a) Companies could not afford to pay employees. Personal businesses could not afford to buy products for themselves. b) People began burning their money because the heat was more valuable than the value of the bill. c) Food was too expensive to buy. - Effects in the United States (First country to actually make progress with the collapsed world economy) a) The Hoover administration attempted to revitalize the economy in the United States, however he failed miserably and probably made conditions worse. b) The Roosevelt administration was faced with a very big problem. Roosevelt knew that revitalizing the economy would not work, instead he proposed that the economy should be restructured. Roosevelt set rules that stated: 1. No monopolizing industry. 2. A set minimum wage for all workers and employees was to be implemented. 3. Encouraging workers Unions to be formed. This would make more people join the workforce. 4. Farm production was to be cut so that prices of agriculture would increase. 5. Businesses would be forced to work with the government. c) The Roosevelt administration kept the national debt at a reasonable percentage (40%) - Everyone else. a) Many countries tried doing the same thing that President hoover did, revitalize their economies in the traditional way. This failed miserably. b) The countries that recovered the fastest became economic giants for a long while afterword. c) The countries that could not reconstruct their economies, and therefore had prolonged depressions. - World War II saved the world economy. a) WWII forced every country to put all resources into industrialization for war. b) Production was now aimed solely at the War in every country that were involved. c) The War gave people jobs, encouraged them to conserve resources, and stimulated every industry. - After the War. a) The global economy rebounded after the war. Industrialized nations continued with their increase in industry. b) The Great Depression was virtually over in the world by the 1940's with only trace amounts of lingering effects.  __**Technology**__  - Production from WWII led to an increase of technologies. a) Things like radios, vehicles, and weaponry increased production in all industrialized countries. b) Civilians began purchasing these items. c) Companies who originally developed things for their governments now developed for the average consumer. - Competition between countries. a) Countries began to compete for better technology, which led to more jobs and increased production to be contributed to the world market. b) The Atomic bomb made the USSR race against the United States in an arms race that helped America but eventually depleted Russia's resources and led to it's minor depression. 1. The US had more resources and labor than the USSR. 2. The US is a capitalist state, so those freaking commies didn't stand a chance against the might that is the dominating force behind our great country. - Natural resources begin to become scarce. a) Things like oil, lumber, and fossil fuels are becoming harder to acquire with their continued depletion. 1. Nations began going to war with one another in order to acquire more natural resources to feed their need for new technologies. - New ways to find an alternative to depleted resources had to be found. a) This opened up new jobs. b) New technologies like nuclear power, solar panels, and giant windmills began to be developed and used for energy. c) Industrialized nations have begun to use these methods to fuel their countries. d) Because of the discovery and research into new energy methods, countries no longer have to be dependent on one another for natural resources. __**Pacific Rim** __ //Countries involved with Pacific Rim // -The Pacific Rim includes countries that are located around the edge of the Pacific Ocean, some major economic centers include: -Los Angeles -Auckland -Manila -Lima -Tokyo -Hong Kong -Vancouver -Seattle -Sydney -Singapore -Taiwan -Raw material and finished goods are shipped between Pacific Rim states for manufacture, packaging, and sale. -From the colonization of the Americas to just a few years ago, the Atlantic Ocean had been the leading ocean for the shipment of goods and material. -Los Angeles is the American leader in the Pacific Rim as it's the source for the most trans-Pacific flights and ocean-based shipments. Additionally, the value of United States imports from Pacific Rim countries is greater than the imports from NATO (North Atlantic Treaty Organization) member in Europe. -Four of the Pacific Rim territories have been called "Economic Tigers" due to their aggressive economies.   //South Korea //~ prosperity and industrial development; production of items from electronics and clothing to automobiles; three times larger than Taiwan and has been losing its historical agricultural base to industries.   //Taiwan //~ major industries and entrepreneurial initiative; about 14,000 square miles and has a focus on its north coast, centered on the capital city of Taipei; 20th largest economy. <span style="color: #002060; font-family: 'Times New Roman','serif';"> <span style="font-size: 12pt; color: #002060; line-height: 115%; font-family: 'Times New Roman','serif';"> //<span style="font-size: 12pt; color: #002060; line-height: 115%; font-family: 'Times New Roman','serif';">Singapore //<span style="font-size: 12pt; color: #002060; line-height: 115%; font-family: 'Times New Roman','serif';">~ started its road to success as a free port for transshipment of goods; became independent in 1965; effectively utilized its limited land area (240 square miles) to become a world leader in industrialization. <span style="color: #002060; font-family: 'Times New Roman','serif';"> //<span style="font-size: 12pt; color: #002060; line-height: 115%; font-family: 'Times New Roman','serif';">Hong Kong //<span style="font-size: 12pt; color: #002060; line-height: 115%; font-family: 'Times New Roman','serif';">~ became part of China on July 1, 1997 after being territory of the United Kingdom for 99 years; one of the world's outstanding examples of capitalism with a major communist nation. -These four places have even challenged Japan’s dominance in Asian economy. <span style="font-size: 14pt; color: #002060; line-height: 115%; font-family: 'Times New Roman','serif';">APEC <span style="font-size: 12pt; color: #002060; line-height: 115%; font-family: 'Times New Roman','serif';">- The Asia-Pacific Economic Cooperation (APEC) organization is composed of 18 Pacific Rim countries: -Brunei, Canada, Chile, China, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Philippines, Singapore, South Korea, Taiwan, Thailand, and the United States. - They are responsible for the production of about 80% of the world's computer and high tech components. - APEC was formed in 1989 to promote free trade and economic integration of the member nations. <span style="font-size: 12pt; line-height: 115%; font-family: 'Times New Roman','serif';"> __<span style="font-size: 20pt; color: #e36c0a; line-height: 115%; font-family: 'Times New Roman','serif'; mso-themecolor: accent6; mso-themeshade: 191;">**Multinational Corporations** __<span style="font-size: 20pt; color: #e36c0a; line-height: 115%; font-family: 'Times New Roman','serif'; mso-themecolor: accent6; mso-themeshade: 191;">

<span style="font-size: 12pt; color: #e36c0a; line-height: 115%; font-family: 'Times New Roman','serif'; mso-themecolor: accent6; mso-themeshade: 191;">- is a corporation or enterprise that manages production or delivers services in more than one country. - The first modern MC is generally thought to be the Dutch East India Company, established in 1602. - Multinational corporations can have a powerful influence in local economies as well as the world economy and play an important role in international relations and globalization. - Some <span style="font-size: 12pt; color: #e36c0a; line-height: 115%; font-family: 'Times New Roman','serif'; mso-themecolor: accent6; mso-ansi-language: EN; mso-themeshade: 191;"> corporations include: <span style="font-size: 12pt; color: #e36c0a; line-height: 115%; font-family: 'Times New Roman','serif'; mso-themecolor: accent6; mso-themeshade: 191;">- McDonalds, Nestle, PepsiCo, Coca-Cola, Google, The Walt Disney Company, Red Bull, Apple Inc., Hewlett Packard, etc. - Most of the largest companies, by revenue, are American or Japanese. - Most of the top 100 companies with largest foreign assets are from the United States, Japan, the United Kingdom, France and Germany. <span style="color: #e36c0a; font-family: 'Times New Roman','serif'; mso-themecolor: accent6; mso-themeshade: 191;"> <span style="font-size: 11pt; color: #e36c0a; line-height: 115%; font-family: 'Times New Roman','serif'; mso-fareast-font-family: Calibri; mso-themecolor: accent6; mso-ansi-language: EN-US; mso-themeshade: 191; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;"> <span style="font-size: 12pt; color: #e36c0a; line-height: 115%; font-family: 'Times New Roman','serif'; mso-themecolor: accent6; mso-themeshade: 191;">Controversy - Many religious leaders are increasingly troubled by the growing presence of multinational corporations around the world, especially in poor and developing nations. - Some allegations include the charge that profit-motivated multinational corporations are engaging in destructive competition and plots to economically and politically manipulate entire economies, just for the sake of money-making. -Multinational corporations are perceived to be: - methodically eliminating domestic firms in order to exploit their monopoly powers - exporting high-wage jobs to low-wage countries - undermining the world’s environment - augmenting the external debt problems of developing countries - perpetuating world poverty - exploiting child labor -Economically, the better a company’s main corporations are doing, the better the economy will be, once the corporations start to go into bankruptcy and drop in worth, the country needs to back them up with the nations funds in order to keep the economy thriving and prospering.