ThinkRankThe Making of a Global World
Overview
This chapter shows how global connections expanded through trade, industrialization, and colonialism, and how crises like the Great Depression reshaped the world economy.
Learning Objectives
- Understand phases of globalization
- Explain impact of colonialism on trade
- Describe the Great Depression’s effects
Key Concepts
Early Trade Networks
Caravan and sea routes connected Asia, Europe, and Africa long before modern globalization.
Industrialization and Transport
Steamships and railways lowered costs, increased trade volume, and integrated markets.
Colonial Economies
Colonies supplied raw materials and served as markets, creating unequal global trade patterns.
Great Depression
The collapse of demand and prices in 1929 led to unemployment and trade decline worldwide.
Bretton Woods System
Post-WWII institutions stabilized currencies and expanded global trade.
Interwar Protectionism
Countries raised tariffs to protect jobs and industries, which reduced international trade further.
World Wars and Trade
Wars disrupted shipping and supply chains, reshaping the global economy and production.
Key Terms
Examples
Indentured Migration
Indian laborers were sent to plantations in the Caribbean and Southeast Asia under contracts.
Price Collapse in 1930s
Agricultural prices fell sharply, harming farmers in colonial economies.
Quick Check
- How did transport change global trade?
- Why did the Great Depression spread worldwide?
- What role did colonies play in global trade?