Describe the end of Brettonwoods and the beginning of Globalisation ?
★Class 10 CBSE ★ History - " The Making of a Global World "
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Answered by
85
heya dear..!!
From the 1960s..the rising cost of US's overseas involvement weakened it's finances.....the US dollar could not maintain its value and hence it led to the collapse of the system of fixed exchange rates.
✒this led to periodic debt crisis, lower income and increased poverty in Africa and Latin America.
✒from late 1970s,MNCs also began to shift production operations to low-wage Asian countries.
✒As Wages were relatively low in countries like china,it became a favourite destination for investment by foreign MNCs competing to capture world markets.
✒In the last 2 decades ,countries like China, India and Brazil have achieved rapid economic development.
hope this will help u dear..!!
Glad to help u ✌✌
From the 1960s..the rising cost of US's overseas involvement weakened it's finances.....the US dollar could not maintain its value and hence it led to the collapse of the system of fixed exchange rates.
✒this led to periodic debt crisis, lower income and increased poverty in Africa and Latin America.
✒from late 1970s,MNCs also began to shift production operations to low-wage Asian countries.
✒As Wages were relatively low in countries like china,it became a favourite destination for investment by foreign MNCs competing to capture world markets.
✒In the last 2 decades ,countries like China, India and Brazil have achieved rapid economic development.
hope this will help u dear..!!
Glad to help u ✌✌
BrainlyHulk:
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Answered by
48
Hi there!
The Bretton Wood Conference established the International Monetary Fund (IMF) to deal with external surplus and deficits of its member nations.
The International Bank for Reconstruction and Development (known as World Bank) was set up to finance post-war reconstruction. The IMF and World Bank are referred as twins of Bretton Woods.
The post-war international economic system is also described as the Bretton Woods System.
Both these institutions commenced financial operations in 1947, which they are continuing hitherto. Decision making in these institutions is controlled by the Western industrial powers.
The United States has an effective right of Veto over key IMF and World Bank decisions.
From 1960s, the rising cost of US's involvements weakened its competetive strength.
This eventually led to collapse of fixed exchange rates & introduction of a system of floating exchange rates.
From the mid-1970s, the international financial system changed.
Following were the changes that resulted the End of Bretton Woods & beginning of 'Globalization' :-
1. US dollar no longer commanded confidence.
2. US dollar could not maintain its value in relation to gold.
3. Collapse of fixed exchange rates on floating exchange rates.
4. Developing countries were forced to borrow from Western Commercial Banks.
5. Periodic debt crisis, lower incomes and increased poverty in Africa & Latin Africa
6. Industrial world was hit by unemployment.
From the late 1970s, MNC's also began to shift production operations to low-wage Asian countries.
Hope it helps!
[ Thank you! for asking the Question. ]
The Bretton Wood Conference established the International Monetary Fund (IMF) to deal with external surplus and deficits of its member nations.
The International Bank for Reconstruction and Development (known as World Bank) was set up to finance post-war reconstruction. The IMF and World Bank are referred as twins of Bretton Woods.
The post-war international economic system is also described as the Bretton Woods System.
Both these institutions commenced financial operations in 1947, which they are continuing hitherto. Decision making in these institutions is controlled by the Western industrial powers.
The United States has an effective right of Veto over key IMF and World Bank decisions.
From 1960s, the rising cost of US's involvements weakened its competetive strength.
This eventually led to collapse of fixed exchange rates & introduction of a system of floating exchange rates.
From the mid-1970s, the international financial system changed.
Following were the changes that resulted the End of Bretton Woods & beginning of 'Globalization' :-
1. US dollar no longer commanded confidence.
2. US dollar could not maintain its value in relation to gold.
3. Collapse of fixed exchange rates on floating exchange rates.
4. Developing countries were forced to borrow from Western Commercial Banks.
5. Periodic debt crisis, lower incomes and increased poverty in Africa & Latin Africa
6. Industrial world was hit by unemployment.
From the late 1970s, MNC's also began to shift production operations to low-wage Asian countries.
Hope it helps!
[ Thank you! for asking the Question. ]
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