Pre-Industrial Economies Overview

<p>A decline in international trade and economic growth (D)</p> Signup and view all the answers

<p>Economic strength and resource mobilization became increasingly important. (B)</p> Signup and view all the answers

<p>The interconnectedness of national economies (C)</p> Signup and view all the answers

<p>World War I, the Great Depression, and the abandonment of the gold standard (A)</p> Signup and view all the answers

<p>A major disruption of international trade and capital flows. (D)</p> Signup and view all the answers

<p>By reducing income disparities between Europe and the New World (C)</p> Signup and view all the answers

<p>The entry of the United States into the war. (B)</p> Signup and view all the answers

<p>Slower economic growth compared to previous periods. (A)</p> Signup and view all the answers

<p>They promoted trade and economic growth in receiving regions (A)</p> Signup and view all the answers

<p>It worsened, with income gaps between rich and poor countries widening. (D)</p> Signup and view all the answers

<p>It marked a decline in global trade and capital flows. (A)</p> Signup and view all the answers

<p>It helps explain many of the observed economic changes, but is not the only factor at play. (A)</p> Signup and view all the answers

<p>The legacy of World War I. (C)</p> Signup and view all the answers

<p>Financial fragility and income inequality (B)</p> Signup and view all the answers

<p>Increased tariffs on imports (C)</p> Signup and view all the answers

<p>Industry (A)</p> Signup and view all the answers

<p>It activated economic growth (C)</p> Signup and view all the answers

<p>Sustained economic growth (B)</p> Signup and view all the answers

<p>It marked the rise of the U.S. and USSR as dominant powers. (C)</p> Signup and view all the answers

<p>Protectionism and geopolitical tensions (C)</p> Signup and view all the answers

<p>To aid in rebuilding the economy of Western Europe (D)</p> Signup and view all the answers

<p>They helped stabilize global financial systems. (D)</p> Signup and view all the answers

<p>Technological innovation and industrial growth. (C)</p> Signup and view all the answers

<p>Absence of stable economic institutions. (D)</p> Signup and view all the answers

<p>By promoting political stability and reducing policy uncertainty. (A)</p> Signup and view all the answers

<p>It was essential for sustained economic growth. (B)</p> Signup and view all the answers

<p>Stable growth with low unemployment and mild fluctuations. (B)</p> Signup and view all the answers

<p>Increased productivity particularly in industrial sectors. (C)</p> Signup and view all the answers

<p>International Monetary Fund and World Bank. (C)</p> Signup and view all the answers

<p>It caused greater inequality in labor-scarce countries, while wage compression occurred in labor-abundant countries. (A)</p> Signup and view all the answers

<p>Technological advancements in communication (B)</p> Signup and view all the answers

<p>Increased reliance on subsistence agriculture (C)</p> Signup and view all the answers

<p>High wages and cheap energy (C)</p> Signup and view all the answers

<p>Wage differentials between Europe and the New World (B)</p> Signup and view all the answers

<p>High wages (A)</p> Signup and view all the answers

<p>Improved communication technologies that facilitated long-distance migration (B)</p> Signup and view all the answers

<p>They facilitated continued migration flows through financial support, information sharing, and reduced migration costs. (C)</p> Signup and view all the answers

<p>Britain's dominance in international trade (A)</p> Signup and view all the answers

<p>Globalization is a complex process with both benefits and drawbacks that can be reversed. (B)</p> Signup and view all the answers

<p>The Industrial Revolution caused a decline in the British economy (D)</p> Signup and view all the answers

<p>Allen emphasizes the role of economic incentives, while A'Hearn focuses on the broader structural transformations (B)</p> Signup and view all the answers

<p>Reduced economic inequality within countries (D)</p> Signup and view all the answers

<p>The period between 1914 and 1950 (B)</p> Signup and view all the answers

<p>Low labor productivity and limited economic specialization (B)</p> Signup and view all the answers

<p>Scientific advancements were mostly driven by the needs of the military (A)</p> Signup and view all the answers

The inefficiency of labor in pre-industrial economies due to primitive techniques.

Farming system where farmers grow food primarily for their own consumption.

A situation where workers are paid more, encouraging innovation in labor-saving technologies.

Affordable energy, particularly coal, that spurs economic growth and technology.

Economic policies that boosted Britain’s wealth through international trade and market expansion.

The importance of education and literacy in fostering innovation during the Industrial Revolution.

Advancements in technology that drive economic growth and productivity.

The movement of people from rural areas to cities for industrial jobs, causing city growth.

Globalization caused economic growth but increased inequality, creating both winners and losers in different countries.

Labor-scarce countries like the U.S. faced wage rises, while labor-abundant nations, like those in Europe, saw wage compression.

The inequality from globalization prompted political reactions like protectionist tariffs and restrictive immigration policies.

The periods of World War I, the Great Depression, and World War II drastically reversed globalization, halting economic progress.

Wage gaps between Europe and the New World drove mass migration as labor-scarce regions offered higher wages.

Population growth and industrialization created labor mobility by reducing rural ties and encouraging migration.

Existing migrant communities supported new migrants, facilitating continued migration through remittances and information.

The process where migrants follow previous migrants, relying on social and financial support for relocation.

An economic theory explaining international trade based on factor endowments.

Significance of economic resources over military strategies in WWI.

World War I reversed the globalization trends of the 19th century.

The U.S. joined the war in 1917, providing a stronger economy for the Allies.

The interwar period saw slower economic growth compared to surrounding eras.

Income gaps widened between rich and poor countries during the interwar period.

A sharp decline in global trade and capital flows during the interwar years.

The ongoing economic impacts and changes due to World War I.

International institutions established at Bretton Woods to stabilize global finance.

The rapid expansion of economies in Western Europe and Japan from 1945 to 1973.

Lack of stable institutions was a major obstacle to post-war recovery.

A U.S. initiative that provided aid to Western Europe to promote recovery and stability.

The collaboration of European countries to foster trade and economic cooperation.

A period from 1950 to 1973 marked by rapid and stable economic growth in Western Europe.

Key factors like investment and technology that propelled economic growth in Europe.

A characteristic of Europe’s economy during the Golden Age, indicating job availability.

Underlying issues like financial fragility and income inequality that led to the Great Depression.

Actions like abandoning the gold standard and fiscal stimulus that aided recovery post-Depression.

Post-Depression recovery was strong in industry but weak in agriculture due to global price drops.

Increased military spending in the late 1930s boosted economic growth and reduced unemployment.

U.S.-led initiatives that fostered long-term growth and recovery after WWII.

Post-war era that saw the decline of European powers and rise of the US and USSR.

Second wave of globalization that increased economic integration but faced risks like protectionism.

U.S. economic aid that was crucial for Europe’s post-war recovery and political stability.

Period before World War I marked by high integration of international capital markets, especially by British investments.

Technological advances like steamships and telegraphs reduced costs and integrated global capital markets.

Post-World War I era saw a significant drop in global capital flows due to political and economic instability.

High demand for investments in resource-rich regions like the U.S. attracted European capital for infrastructure.

Europe's high savings and mature demographics allowed capital exports, while the New World relied on foreign investment.

Capital flows contributed to reducing income disparities between Europe and the New World, fostering economic equality.

International capital flows were sensitive to crises, leading to rapid shifts in investment patterns during shocks.

The gold standard provided monetary stability that fostered international trade and investment before WWI.