AP World History AMSCO Guided Notes
9.4: Economics in the Global Age
AMSCO Guided Notes
AP World History Guided Notes
AMSCO 9.4 - Economics in the Global Age
Essential Questions
- How did the global economy change and remain the same from 1900 to the present?
I. Acceleration of Free-Market Economies
1. What is globalization and how did it accelerate after the Cold War ended?
2. What is economic liberalization and what role did Reagan and Thatcher play in promoting it?
3. What were the benefits and criticisms of the shift toward free-market economies?
A. Economic Liberalization in Chile
1. How did Pinochet's economic policies shift Chile's economy, and what were the Chicago Boys' role in these reforms?
2. Why were Chile's initial free-market reforms unpopular, and how did later administrations address this problem?
B. Chinese Economic Reforms
1. What specific economic reforms did Deng Xiaoping implement to open China's economy?
2. How did China's economic reforms lead to agricultural improvements and industrial growth?
3. What happened at Tiananmen Square in 1989 and what does it reveal about the limits of China's political reforms?
II. Economic Change: New Knowledge Economies
1. What is a knowledge economy and how does it differ from traditional manufacturing economies?
A. Knowledge Economy in Finland
1. How did Finland transform its economy after the Soviet Union collapsed?
2. What role did government investment in education and technology play in Finland's economic success?
B. Japanese Economic Growth
1. What government policies did Japan use after World War II to become a manufacturing powerhouse?
2. What costs did Japanese consumers bear during Japan's period of rapid economic growth?
3. How did Japan's economy evolve after the 1980s, and what was its global economic position by 2014?
4. How did the Asian Tigers follow Japan's economic model and what were the results?
III. Economic Continuities: Shifting Manufacturing
1. Where has manufacturing shifted as knowledge economies developed in developed countries?
A. Vietnam and Bangladesh
1. Why have Vietnam and Bangladesh become major centers for garment manufacturing and what are their primary exports?
2. What labor issues have workers in Vietnam and Bangladesh faced, and what progress have they made?
B. Manufacturing in Mexico and Honduras
1. What is a maquiladora and how did NAFTA encourage their development in Mexico?
2. What criticisms did U.S. labor unions raise about NAFTA and maquiladoras?
3. How is Honduras attempting to upgrade its textile manufacturing industry?
IV. Transnational Free-Trade Organizations
1. What role did GATT play in reducing trade barriers and promoting international trade after World War II?
2. What is the World Trade Organization and why did it become controversial?
V. Multinational Corporations
1. What is a multinational corporation and how do modern multinational corporations differ from early examples like the East India Company?
2. How did India's economic liberalization and educated workforce attract multinational corporations?
3. What are the main criticisms of multinational corporations and how do companies like Mahindra & Mahindra and Nestlé illustrate different corporate practices?
Key Terms
economic liberalization
free markets
Ronald Reagan
Margaret Thatcher
Augusto Pinochet
Deng Xiaoping
knowledge economy
Asian Tigers
NAFTA
maquiladora
Mercosur
Association of Southeast Asian Nations (ASEAN)
General Agreement on Tariffs and Trade (GATT)
protective tariffs
World Trade Organization (WTO)
knowledge economy
multinational corporation
Microsoft
Mahindra & Mahindra
Nestlé
Tiananmen Square