2.1.

Factors for the rise of the Global Economy The Bretton Woods System Made up of 3 arms role of the BWS !as to ensure monetary and trade stability by promotin" a"reements !hich see# to tabili$e economic e%chan"es bet!een countries and establish an international order. G&TT By reducin" non'tariff barriers( increased trade and opened mar#ets( allo!in" countries to e%ploit their comparati)e ad)anta"e WB *MF +layed a ma,or role for the de)eloped nations -S &id .econstruction aid of 13b throu"h the Marshall +lan( /00m throu"h the Truman 1octrine and ta#in" o)er the defence burden of other countries. &lso included the decline in protectionism 2old War The 2old !ar increased the e%tent of "ro!th of the "lobal economy by incenti)i$in" the -S& to "i)e aid in order to obtain allies and a thus( "reater sphere of influence. Not a consistent factor to explain the rise of the global economy; only for Japan. -S& had already adopted the 3Europe First4 Strate"y( and throu"h the years of 15/6' /7( before the start of the cold !ar( had "i)en aid of /./b to Britain and 2b to France. 8eynesian economics and monetarism &ccounted for "reater "o)ernmental control o)er the internal economies of countries throu"h the central ban# and settin" interest rates. Go)ernments could then inter)ene in the economies to ensure "reater economic stability. 2heap 9il Supply of s#illed labour :i"h supply of s#illed