INTST101 Chapter Notes - Chapter 3: Bretton Woods System, Economic Globalization, World Bank
19 Dec 2015
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Document Summary
Increasing interdependence of the world economies result of growing cross-border trade of commodities and services, flow of international capital, and wide and rapid spread of technologies. Based on the rapid development of science and tech. Resulted from environment in which the market economic system has been fast spreading throughout the world. Developed on the basis of cross border division of labour. The bretton woods system (world bank, international monetary fund, and the gatt/wto: world bank (originally focused on microeconomic policy) Initially to help europe recover/rebuild from ww2; successful in providing financing for those countries. Development; loaned funds to developing countries at low interest rates. Infrastructure and projects would allow countries to use their growth to repay costs of loan. Today, it attempts to fight poverty by offering developmental assistance to poorer countries. Was established to create stable exchange rates by pegging currencies to the us dollar, us dollar became the world"s global currency, us dollar backed by gold.
