ECON 234 Chapter 1: Allen Global Economic History... Chapter 1
Document Summary
C"s = country or countries (depends on the context of the sentence) Economic divergence occurred @ around 1500 > voyages to the new world (i. e columbus) [before then, differences in prosperity between countries were small] The last 500 yrs (from 1500s to present) can be divided in 3 periods: 2. implementation of external tariffs to protect infant industries from britain: chartering of banks to stabilize currency & finance industrial investment, mass education (to upgrade labour force) Unlike standard policy, it requires planning & investment coordination (i. e. used by soviet. Major cause of divergence in world incomes was industrialization & de-industrialization (example #1) industrialization --> prompted the mechanization of tasks (by using tech/capital) --> which increases productivity. Britain was able to produce more textiles @ lower costs than hand-manufacturing china. Germany) increased there shares of world production while causing britain"s (who had high shares; see i. e. #1) to drop. Gdp is not an adequate measure of well-being b/c: [shortcomings of gdp]
