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Global Trade Review for AP World History (page 2)

By — McGraw-Hill Professional
Updated on Mar 4, 2011

Europe

  • During World War I, European nations, and Great Britain in particular, failed to recover their dominant export position, losing out to the United States and Japan.
  • In the first half of the twentieth century, most Eastern European nations were primarily agricultural, relying on sales of their products to Western Europe.
  • The European Economic Community (Common Market) was organized in 1958 by West Germany, France, Italy, Belgium, Luxembourg, and the Netherlands. It reduced tariffs among member nations and created a common tariff policy for other world nations.
  • In 1992, Great Britain joined the European Economic Community, and was later joined by Ireland, Denmark, Greece, Spain, and Portugal.
  • In the mid-1990s, Finland, Sweden, and Austria joined the economic community, now called the European Union.
  • In 2002, a common currency, the euro, was accepted by most member nations of the European Union, with Great Britain serving as a notable exception.

Latin America

  • World War I and European trade brought prosperity to Latin America. Latin American nations also had to produce for themselves the products they could no longer import from Europe during the war, a concept known as import substitution industrialization.
  • The Great Depression caused a decline in the purchase of Latin American products.
  • The United States was Cuba's leading trade partner prior to 1959. Fluctuation in world demands for sugar made Cuban prosperity uncertain.
  • After the Cuban Revolution, Cuba's economy was tied into that of the Soviet Union. Cuba's economy deteriorated rapidly after the fall of the Soviet Union.
  • Colombia was a major participant in the international drug trade.
  • Brazil exported exotic woods.
  • Venezuela, an OPEC member, and Mexico were oil-producing countries.
  • At the beginning of the twenty-first century, Latin American nations were more heavily industrialized than before.

North America

  • During World War I, U.S. exports rose so rapidly that, for the first time in its history, the United States became a creditor nation.
  • After World War I, the United States exported motion picture films. The United States also distributed food such as wheat and corn to war-torn European nations after both world wars. By the 1960s and 1970s, U.S. fast foods had reached locations around the globe, including the Soviet Union and the People's Republic of China. Industrial supplies continued as a major U.S. export throughout the twentieth century.
  • In 1994, the North American Free Trade Agreement (NAFTA) went into effect. NAFTA abolished tariffs between Canada, the United States, and Mexico. Opposition to NAFTA broke out among Indians in the Mexican state of Chiapas.
  • In Seattle in 1999, demonstrators protested against the World Trade Organization (WTO). The WTO was established in 1995 in order to organize world trade.
  • U.S. trade created a worldwide diffusion of its products and culture. Advertising led to familiar logos and global recognition of U.S. products.

Rapid Review

Twentieth- and twenty-first-century global economies were so interconnected that a crisis in one sector affects nearly all regions of the globe. Former colonial economies often had difficulty recovering from the production of a plantation cash crop to a diversified economy. East Asian nations proved fierce competitors in the export of automobiles, textiles, and electronics. OPEC oil prices became a major focus of world attention. Mass consumerism characterized the latter years of the twentieth century and the beginning of the twenty-first century as U.S. values and products diffused throughout most of the world.

Review questions for this study guide can be found at:

Global Trade Review Questions for the AP World History Exam

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