The system had helped to promote economic growth and stability in the industrial world. Without the system, the global economy became more volatile and prone to crises. The 1970s saw a rise in inflation and unemployment, and the world economy experienced a number of recessions. The Bretton Woods system of monetary management was founded in 1944. It was intended to foster economic stability and full employment in the industrialized world. The system forced countries to peg their currencies to the US dollar, which was then convertible to gold for a predetermined price of $35 per ounce.
NCERT Solutions for Class 10 Social Science History Chapter 4 The Making of Global World
However, the developing countries felt dominated by a few major powers. (iii) The withdrawal of US loans affected the rest of the world in many different ways. In Europe it led to the failure of some major banks and the collapse of currencies such as the British pound sterling.
Question 6 Imagine that you are an indentured Indian labourer in the Caribbean. Drawing from the details in this chapter, write a letter to your family describing your life and feelings. (d) In the nineteenth century, colonial India had become an exporter of agricultural goods and importer of manufactures. Since men went to battle, women stepped in to undertake jobs that earlier only men were expected to do. The war led to the snapping of economic links between some of the world’s largest economic powers which were now fighting for each other to pay for them. So, Britain borrowed large sums of money from US banks as well as the US public.
Between 1928 and 1934, wheat prices in India fell by 50 per cent. (e) The decision of MNCs to relocate production to Asian countries. (iii) In return, precious metals – gold and silver flowed from Europe to Asia.
Since the First World War, a few countries had started controlling imports and exports to offset wartime blockades. Manipulation of currencies was done to manage foreign trade, which led to currency warfare and restrictive trade practices. This manipulation led to the deflation and devaluation of many currencies.
How did globalization impact societies and cultures?
- The end of the Bretton Woods system was triggered by factors such as the collapse of fixed exchange rates, inflationary pressures, and the oil crisis of the 1970s.
- (iii) In return, precious metals – gold and silver flowed from Europe to Asia.
- In the post-World War II period during the ’50s and ’60s, impressive development was seen in some of the countries.
- Find one example of each type of flow which involved India and Indians and write a short account of it.
- It marked the end of an era of economic stability and the beginning of a new era of globalization.
As with the benefits of all currency pegging regimes, currency pegs are expected to provide currency stabilization for the trade of goods and services as well as financing. The declaration called for changes in trade, industrialisation, agricultural production, and finance. All the 44 signatory nations of the agreement contributed fees towards the initial funding of the two institutions. The system emerged from a conference in 1944 of all the World War II allied countries. The agreement led to the formation of two institutions with specific objectives. All three flows were closely interlinked and affected peoples’ lives.
Chapter 3 The Making of a Global World
(e) The respective governments of the MNCs imposed what is meant by the bretton woods agreement class 10 heavy import tariffs. So the MNCs began relocating their production to Asian countries. The Vietnam War and other overseas involvements weakened the US economy and made it difficult for the US to maintain the convertibility of the dollar to gold. In 1971, President Richard Nixon announced that the US would no longer convert dollars to gold. NCERT Solutions for Class 10 History Chapter 3 The Making of a Global World are given in this article. These solutions will help you learn the facts and events easily.
In these depression years, India became an exporter of precious metals, notably gold. Under the agreement, currencies were pegged to the price of gold, and the US dollar was seen as a reserve currency linked to the price of gold. Decision-making authority was given to the Western industrial powers. The US was given the right of veto over key IMF and World Bank decisions. The Bretton Woods system Opened an era of unique growth of trade and incomes for the Western industrial nations and Japan.
Describe any five factors that led to the end of the Bretton Woods System and the beginning of globalisation.
(d) By the early twentieth century, the global economy had become an integral one. The government did not decrease their taxes due to which peasants’ indebtedness increased all across India. Question 7 Explain the three types of movements or flows within international economic exchange. Find one example of each type of flow which involved India and Indians and write a short account of it. (e) The decision of MNCs to relocate production to Asian countries led to a stimulation of world trade and capital flows. This relocation was on account of low-cost structure and lower wages in Asian countries.
Moreover, many developing countries did not even exist as independent states when these policies were framed. The New International Economic Order (NIEO) represents proposals advocated by developing countries to end economic colonialism through a new interdependent economy. The G–77 is the most important forum for developing countries to tackle global economic issues by adapting common strategies through cooperation and collaboration. The NIEO subsequently followed on the pursuance of the members. A)The International Monetary Fund (IMF) monitors exchange rates and lends reserve currencies to nations with trade deficits. Answer 2 By the mid-sixteenth century Europe defeated America not with military power but they (Americans) got killed due to the germs of smallpox brought by Europeans with them.