After World War II and up to our 21st century, global economics shifted towards liberalization. This time reflected the lessening of government regulations and restrictions in an economy in exchange for greater participation by private entities. In other words, it was a lean back towards a more laissez-faire economy. The days of strict Keynesian economics were coming to an end and the goal for many nations was to catch up with the American economic engine. Free trade was was on the rise. The Soviet Union was making free-market reforms and Communist China followed suit. New regional trade agreements allowed for more manufacturing outside of America with NAFTA and the 'Asian Tigers' changing forces in the Far East.
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Objective:
D. Explain the continuities and changes in the global economy from 1900 to the present.
Theme:
D. ECN (Economic Systems)
Skills:
D. ECN
Explain the continuities and changes in the global economy from 1900 to the present.
HISTORICAL DEVELOPMENTS
In a trend accelerated by the end of the Cold War, many governments encouraged free market economic policies and promoted economic liberalization in the late 20th century. Also, in the late 20th century, revolutions in information and communications technology led to the growth of knowledge economies in some regions, while industrial production and manufacturing were increasingly situated in Asia and Latin America. Finally, changing economic institutions, multinational corporations, and regional trade agreements reflected the spread of principles and practices associated with free-market economics throughout the world.
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