Week 3 Study Guide

Week 3 Study Guide - INTB 3351 History of Globalization...

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INTB 3351 History of Globalization Reading Study Guide Readings: Jeffrey Frieden, Global Capitalism , pp. 1-79, 105-123 1. What was mercantilism? How did it work? What were the key factors behind the shift from mercantilism to free trade? (pp. 2-6) A system of economic control to exploit colonial markets and strengthen royal dominance. Colonial power forced its colonies to trade with mother country to enrich the government and its supporters. Regulated by military power. British saw mercantilism as harmful. Strong desire for free trade. Focused on Corn Laws which served to increase the domestic price of grain. Wanted to eliminate country barriers, allowing foreigners to sell their products to Britain >> positive effects manufacturers could lower costs by importing cheaper raw materials, and cheaper food would allow factories workers to pay lower wages. Foreigners buying British goods from manufacturers. In 1860 France joined Britain in treaty that freed trade between them and drew most of Europe in this direction. Mercantilism was dead. 2. What was the “Gold Standard”? (pp. 6-7, 16-21) In the United States, who opposed the gold standard and why? (pp. 7-16) Internationally, who supported it? (pp. 43-45) How was the gold standard “reaffirmed” and expanded after 1896? (pp. 16-21, 48- 50) Internationally, who benefitted and who was hurt by the operation of the gold standard? (pp. 25-27) Powerful organizing principle of global capitalism in 19 th century. Sir Isaac Newton. Gold Standard- country government promised to exchange its currency for gold. The country currency became equaled to gold, interchangeable at fixed rate with the money of any other gold standard country.
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United States raises protectionist walls around its domestic market. Farmers and miners
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Week 3 Study Guide - INTB 3351 History of Globalization...

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