WEEK 4 Flashcards
What was the narrative period of 1914-1945?
World Wars and Great Depression
How did the world wars and Great Depression affect the economy?
- Warfare and economic dislocation reduced international trade
- Inter-war tariffs were driven by backlash against globalization
- US tariff and retaliation
- Britain unwilling to support world trading system leading to unbundling
- Period gave “protectionism” and “regionalism” a bad name
- Identified need for global institutions and practices
What is the narrative period of 1945-1990?
- Transport advances and trade liberalization
- Trade was institutionalized and liberalized with GATT
- Colonies became nations
- Transport advances: Containerization; Refrigerated ships and trucks; Air cargos
Why were containers important during this time?
- Allows an increase in transportation of goods
- Saves time and money
What was multi-modal transportation?
Ships, trucks, trains
When was the first wave of trade liberalization?
1945-1985
What was the big year?
- 1947
- Multilateralism and regionalism advance together
What happened in June 1947?
Marshall Plan launched - required European economic integration
What happened in July 1947?
Council of European Economic Cooperation (CEEC) formed to formulate Marshall aid plan
- 1st step in post-war European regionalism
- Was institutionalized into OEEC in April 1948
What happened in October 1947?
GATT was signed
What happened in November 1947?
First intra-European clearing mechanism agreed by CEEC
What occurred between the years 1947-1958?
- GATT starts - club of WWII winners
- US leadership
- Germany joins GATT (1950); Japan joins in 1955
- Trader liberalization is mainly for manufacturing goods; not agriculture/services
What happened in 1958?
European Economic Community (EEC) comes into force
What occurs between 1958-1965?
- Regionalism kickstarts multilateralism and triggers domino effects in Europe
