Globalization benefits everyone

- Globalization led to economic growth, advances in technology, and cultural exchange, but the advantages
are not distributed equally throughout all sectors of society. For industrialized nations and particular industries
like Canada, Japan, the United States and many more, it has resulted in increased income, access to goods
and services, and opportunities for collaboration and innovation. However, for developing countries and those
with limited resources, it has led to economic instability, and labor exploitation. As a result, it is more accurate
to state that globalization may help certain people or areas while disadvantage others, depending on factors
such as economic position and or geographic location.

The international monetary system before the 1870s can be considered bimetallic because both gold and
silver were used as international means of payment, and the exchange rate among the currencies was
determined by either their gold or silver contents.

Mint Ratio
> bimetallic standard, the value of money is determined by the fixed ratio between the two metals. This ratio is
called the mint ratio, legal ratio or the gold/silver ratio and is determined by the government.
Avoiding Fluctuation
> meaning may isa nang fixed amount sa gold or silver sa iba't ibang bansa

In the International Monetary conference held in Paris in 1867 decided to terminate the use of the standard and
replace it with a Gold standard, the system, bimetallic, gradually came to end with the franco-german war in
1870.

Gold came up as the next standard of the Monetary System, gold coins circulated as domestic currency
alongside coins of other metals. In 1821, the UK used this standard early and enriched economic and political
dominance. This dominance attracted other countries to enter London's financial markets.

After the Franco-German war, Germany moved to the Gold Standard, providing a fixed price for currencies and
limiting government power to issue paper currency. However, it was criticized for insufficient money supply
flexibility, leading to its fall during World War I. The US dollar became the new international standard, causing
deflation in major global economies.

The Bretton Woods system, established after the 1944 Bretton Woods Agreement, which established a
system through which a fixed currency exchange rate could be created using gold as the universal standard.
The agreement involved representatives from 44 nations and brought about the creation of the International
Monetary Fund (IMF) and the World Bank. The IMF was responsible for bridging the balance of payments. The
system also addressed lack of cooperation and evaluation of currencies. In 1971, the US ended the
convertibility of the US dollar to gold, introducing a fiat currency. Major currencies like the pound sterling
became free-floating after the collapse of the Smithsonian agreement.

The flexible exchange rate system, created after the collapse of the Bretton Woods system in the 1970s,
implies that currency values are controlled by market forces such as supply and demand. Unlike fixed
exchange rates, which are established by governments, this system permits currency values to vary in
response to variables such as inflation and economic performance. It allows countries to follow their own
monetary policies, but it can cause exchange rate volatility, posing issues for businesses and investors.