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1979- 750 000 jobs in auto industry in us
1990s - min 200 - $60, 000 jobs
As this process gathering momentum over the tree decades from 1970's to the 1990s and jobs are sifted
to lower wage areas.
Workers and economies in the global north come under increasing pressure.
-> unions are faced with concessionary bargaining
F.g car industry -> GM ford - shift productions offshore
- Fixed ecx. manager rates of bacttdn-woods system -> exchange rates ended in 1971
- Alongside this global production system is global finance.
- Speculation -> auto pate future market monuments
- flexible exchange rates -> ryc mangr rates. fluctuate according to market conditions -> managed by
stats, but there is no commitment to fixd rates permanentcy.
with removal of currency controls -> deregulation of financial markets - starting in 1970s - the us
initiates the New York wall street market.
-> major amounts of money flowing across national boundaries.
-> in the 1990's over a trillion dollars is being moved daily!
-> destabilizing national economies -> major out flowers of capital -> national gov't.
Increase interest rates -> maintain the attractiveness of investments in their economy.
-> lowering employment ( if u increase a lot) -> leads to a recession.