Question

“Despite years of stable and rapid growth Bretton woods system collapse giving birth of globalisation”. Justify in three points.

Answer 1

Answer:

Answer: With the expansion of the markets due to globalization, the Bretton Wood System collapsed as the US dollars was the no more stable currency for trade and commerce and the fixed exchange rates collapsed and it was only compared with gold. The inroads of globalization gave rise to the floating exchange rates, and more and more countries and trade partners trusted that collapsing the system which was stable for years.