1. Foundations of Economic Globalization
To what extent did world events shape contemporary economic globalization?

2. What is Economic globalization?
The spread of trade, transportation, and communication systems around the world in the interests of promoting world wide commerce
Economic globalization includes the oil and gas pipelines and large tankers that carry oil products from Canada to markets around the world
Economic globalization also affects the Canadian manufacturers who buy products and components from countries where workers are paid much less than Canadian workers

3. Two perspectives...
Countries and people are more economically integrated today than ever before
Interdependence has happened because communication and transportation barriers have been reduced
Economic globalization reaches into every aspect of life
Globalization also builds fences around people
Shuts people out from meeting basic needs
Joseph Stiglitz, 2001 Nobel Prize for Economics
Naomi Klein, Canadian author and journalist

4. Factors affecting E.G.
Famine: Affects people directly and also affects international markest
Economic Uncertainty: Caused by factors such as the collapse of a major industry, depletion of natural resources, or political change
Government Economic Policies: Such as tariffs and other trade regulations, foreign aid, and interest rates

5. Factors Affecting E.G.
Price Changes for Non-Renewable Energy: Such as oil and natural gas
Changes in Investor’s Confidence: Which can affect share prices on local and global stock exchanges
Natural Disasters: Such as earthquakes, droughts, and floods
War: Within a country or among countries

6. How did 20th century world events shape contemporary economic globalization?

7. The Costs of WW1
Appox. 15 million soldiers and civilians were killed during WW1
Economic costs of the war were so high as European cities, towns, farms, roads, factories, ports, ships, and railways had been destroyed
Many countries borrowed money from the US and at war’s end, owed more than $7 billion
After the war, many countries restricted international trade while they tried to rebuild

8. The Costs of Peace The Treaty of Versailles ended WW1
It was suppose to bring peace and prevent another global war
Harsh conditions were imposed on Germany in the form of reparations (payments for war damages in Britain, France, Russia, and other countries

9. Effects on Canadian Economy
By 1918, WW1 had costs Canadian economy more than $2.5 million per day, with the introduction of income tax (supposedly temporarily)
Many jobs stopped when the war ended, and returning veterans were out jobs
The Canadian unemployment rate rose increasingly fast

10. Russia’s Revolution
Russian soldiers were given poor weapons and leadership during war, and were defeated battle after battle
Food and fuel shortages became common, and workers rebelled causing a civil war from
Russia was torn apart, transportation systems broke down, and food could not be shipped
People starved, and famine killed at least 5 million people

11. Communist Russia
In 1922, the Union of Soviet Socialist Republics (USSR) emerged, and became the world’s first communist state
Communism – an economic and political model that was supposed to get rid of class distinction, and opposed to capitalism
Controlled the government and the economy under an absolute ruler – Joseph Stalin

12. The Great Depression 1920s experienced an economic boom
People were spending money, unemployment was low, and stocks were selling
Oct. 29/29 – Black Tuesday
Worried investors started selling, starting a panic, and shares plummeted
People with loans could not repay
Those owed money, could not collect
Demand decreased, unemployment rose, production was cut, creating an economic depression

13. Great Depression in Canada
: exports fell by 50%
1933 – 26.6% out of work
Price of grain fell
Drought added to misery until 1937
Locust destroyed what little crops were grown

14. World War 2 Depression hit Germany hard
Adolf Hitler promised to fix things, and in along with the Nazi Party, was elected leader
Convinced Germans that they belonged to a master race entitled to rule others
Sept. 1, 1939 – Hitler invaded Poland and the world declared war
More than 50 countries and colonies were drawn into the war
In German death camps – tolls estimated between million Jews, Poles, Czechs, Greeks, Roma, Serbs, Ukrainians, Russian, homosexuals, people with disabilities, unionists, POWs, and Jehovah’s Witnesses