ANT204H1 Lecture : Poverty, Development and Globalization I (L08)
Document Summary
1st world war, 1918, treaty of versailles: treaty created to punish germany for being an oppressive state. Lost its colonial holding in africa (rwanda >> belgium) expected to pay reparation to france for damages. rise of the national socialist party (hitler) promises of re- establishing german pride, fix economy. In stock trading, if lots of people believe that the stock value will increase, it will go up. If the stocks are believed to be overvalued, then people sell them and their prices go down (self-fulfilling prophecy) Most of the money used to invest were borrowed money >> lead to contraction in money-lending. No money to buy, less products are manufactured, companies contract and people laid off. Gov"t decided that to protect local enterprises, they must eliminate competition: established tariff barriers to allow domestic industries to grow without foreign competition.
