The Making of a Global World

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.