Social Sciences, asked by renumittalia229, 1 year ago

How did the bretton woods system collapse giving birth to globalisation?

Answers

Answered by Vasu01
23
The collapse of the Bretton Woods Conference & System of Fixed Currency Exchange Rates atop the U.S. Dollar did not birth Globalization.

Globalization is the new name for the more visible effects of increased and increasing International Trade - more goods & services available of higher quality at a range of prices more or less commensurate with quality, and increased competition between all purveyors of internationally tradeable goods & services.

It is important to note that not all goods & services are internationally tradeable: my Barber(in Nevada) is not competing with barbers in China or India or Brazil or Mexico or Canada. Neither are the waiters & cooks in restaurants near me competing with cooks & waiters far from me (or you).

“Globalization” when seen as a new name for an old and ongoing thing: International Trade, is more clearly understandable. The reason it has a new name is that its effects are more widely visible to the population and business community at large than they had been in decades past: if you’re producing a good you are well-advised to think about selling it beyond your own country, and consider whether other producers elsewhere can make the same thing cheaper or better than you.

That awareness of international trade is new, but trade itself is very, very old.



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Answered by Stormbreak
30

Answer:

Despite years of stable and rapid growth , not all was well in the post war world .

Explanation: From the 1960s, the rising cost o US overseas involvement weakened it's financial and its competitive strength.

The US dollar now no longer command confidence as the world's principal currency. It could not maintain its value in relation to gold.

This ultimately led to the collapse of fixed exchange rates and introduction of a system of floating exchange rates

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