Explain the term ‘globalisation’ and the role that multinational companies play in the development of globalisation. Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services and has therefore lead to increased trade between countries. This trade encourages countries to work together and removes trade barriers such as quotas and tariffs. This increased openess allows countries to specialise in producing goods which they have a comparitve advantage in (this means they can produce goods at lower unit costs) A multinational Company is a corporation that has its facilities and other assets in at least one country other than its home country.
During this period The USA had become the world's largest economic power, making up 27% of the world's economy compared to the 19% in 1913. The First and Second World Wars that occurred during the British Imperial Era may explain the decline of Britain as an economic power by 1950. During these wars, Britain had to invest heavily in munitions and equipment, borrowing heavily from the US to help fund its expenditure. With Britain indebted to America, and struggling to maintain an empire after the economic impact of the Second World War, it is unsurprising to see a decline in Britain's economic strength, with an increase in American economic influence. During the Cold War era, the USA's economic position may have been strengthened due to its increasing political influence as one of the world's leading powers alongside The USSR, which had a GDP that made up 10% of the world's economy in 1950.
The Industrial Revolution dramatically changed not just Britain but the whole world. Between 1750 and 1900 trade and industry grew rapidly. Firstly the transport was a massive thing that changed because the first steam engines were introduced mainly to get coal around places more easily. Also many canals had been built for ships and transport. As you can see in source 13 it shows a painting of a new railway station.
In the period 1783 to 93 William Pitt was involved in many different reforms, in areas of finance, administrative and commercial. These were crucial in some way and contributed to Pitt trying to bring about a national revival in Britain. The American War of Independence had had a serious affect on Britain, by ruining government finances, due to the costs of war and the disruption to trade caused by the war. The main problem facing Pitt was the national debt; it had rose, by 91%, to £250 million, with the government expenditure exceeding income by £10.5 million per annum. In addition the interest on the debt alone was £9 million per year.
What accounted for the rise of urbanization in America during the nineteenth century? Urban population of America increased seven fold after Civil War, natural increase accounted for a small part of urban growth, high infant mortality, declining fertility rate, high death rate .In 1900 almost 14 percent were urbanites even though only 12 cities had 1 million or more inhabitants. An agricultural economy to an industrial economy in the end of the 19th century were the most successful nation.The years of industrial expansion after the Civil War brought important changes to American society. The country became increasingly urban, and cities grew not only in terms of population but also in size, with skyscrapers pushing cities upward and new transportation systems extending the outward. Part of the urban population growth was fueled by an unprecedented mass immigration to the United States that continued unabated into the first two decades of the twentieth century.
The era following World War I witnessed the burgeoning of a new lifestyle that characterized the 1920’s. The Great War, now famously known as World War I had brought America to the forefront of the global outlook. The war time excesses in production transformed into prosperity during the next decade which would watch America seek continued isolation despite the mounting global challenges. The Great War and the ensuing Versailles Treaty had left Europe in a rather deprived and devastated state where the Europeans continued to seek cultural and economic assistance from their cross-Atlantic neighbors. With new job opportunities, progressive ideas, an air of liberalism had engulfed the American continent.
“In the space of just 200 years, the world has seen a great reversal of fortune: where once Asians held mot of the economic cards, today it is primarily Western countries and Japan.” (Marks, pg. 44). This shift has caused the “major industrialized countries” (Marks, pg. 43) of western world to attain significant power in terms of the world’s economic practices. Entities such as the Group of Seven, or the G7, and the World Trade Organization, have created programs to lessen the gap between the wealthiest and poorest areas of the world.
Another core cause examined is economic expansion. Among the recent debates about spending cuts and tax increases, it really calls to attention that America was born from an economic expansion. In about 20 years, 1747 to 1765, American exports doubled, as did the imports. As a result people became rich in this flourishing economy, but more importantly a sort of aristocracy, such that has never been seen in America before, is created. As sure as taxes, the clash of the classes begins.
The rise of industrial capitalism drastically changed America and the way people thought which had a both positive and negative effect on America. The new industrial transformation made life easier and more convenient for people with the invention of new technology, ideas, and more opportunities. It created more job opportunities and allowed people to use their creativity. People had the freedom to pursue wealth with self-interest and competition as their
The Progressive Era was a time of reform as well as an industrial boom. New ideas and new ways of going about life, awakened people’s mind to the possibility of something better for them. The middle class started to grow, which boosted the national economy, because they were consuming more. In addition, monopolies started expanding their power over the national economy. A few groups became enormously wealthy and possessed great influence.