World Trade Pre-modern to 18th Century
* The pre-modern world was interlinked with the help of well established trade routes.
* Intercultural exchange happened through the exchange of food items as well.
* China and India remained important players in world trade till the eighteenth century.
* With the rising importance of America, Europe emerged as the new centre of trade.
Shaping of the World Economy
* In the 19th century, three flows governed the international economic exchanges.
* Flow of trade, flow of labour and movement of capital.
* In search of better jobs, people migrated from villages to cities and other countries.
* Technological innovations also helped in the expansion of trade.
Impacts of Colonialism on Economy and People
* Europeans set foot in Africa in search of cheap raw material and labour.
* Europeans imposed heavy taxes and inheritance laws on Africans in order to push them to earn wages.
* Colonial rulers manipulated the outbreak of rider pest in Africa to subdue the native population and force them to work for wages.
* The carving of Africa was formally completed in eighteen eighty five in Berlin.
Indian Indentured Labour and Indian Trade
* In 19th century, several people migrated from India as indentured labourers to Carribean Islands, Mauritius and Fiji.
* Indentured labourers had to sign a contract and they worked under harsh conditions.
* Indentured labourers developed their own forms of self expression.
* In the 19th century Britain maintained a trade surplus with India as India was profitable for Britain.
World Economy Before and After World War I
* World trade and world economy suffered a huge jolt due to World War I.
* World War I can technically be called the first modern industrial war.
* A huge chunk of working class men was completely wiped off in Europe during World War I.
* After the war, Britain found it hard to regain its dominant position in the world economy.
* As US had lent financial help to other countries during the war the US recovered effectively after the World War.
* After nineteen twenty, the US economy grew at a rapid pace courtesy mass production.
The Great Economic Depression
* The Great Depression began in 1929 and lasted for almost a decade.
* During the Depression, the agricultural prices fell and the industrial production came to a halt.
* Depression started due to overproduction of food grains which led to a fall in the agricultural prices.
* During the Depression, India’s exports and imports shrunk to almost half but became the largest exporter of gold.
Growth of the World Economy after World War II
* The post war years were marked with a lot of social, political and economic instability.
* The post war economic system aimed at maintaining economic stability and full employment.
* The Bretton Woods conference established the International Monetary Fund and the World Bank.
* The developing countries collectively formed a group known as G-77 to boost their growth.
* The New International Economic Order was formed to control their natural resources and get better trade opportunities.
* In the last years of nineteen seventies, multinational companies shifted their business operations to countries such as India, China and Brazil.