APWH Unit 9.4
Unit 9.4 — Economics in the Global Age（1900–Present）
Essential Question:
How did the global economy change and remain the same from 1900 to the present?
One-glance Review
- Globalization → massive expansion after Cold War
- Free-market policies → economic growth BUT inequality
- Knowledge economy → information & tech-driven growth
- Manufacturing shift → moves to low-wage regions
- Trade organizations → reduce barriers, increase trade
- Multinational corporations → global production + global inequality
Core Ideas
Global Economy → Integration & Inequality
- The global economy became more interconnected
- BUT benefits were unevenly distributed
Globalization increased wealth but also widened inequality
KEY TERMS BY THEME
ECONOMY: World Trade
ECONOMY: Globalization
GOVERNMENT: Leaders
SOCIETY: China
1. Free-Market Expansion
What is Economic Liberalization (经济自由化)?
- Reduction of:
- Trade barriers
- Government control
- Encourages free-market economy
Key Concept:
- Supply & demand dominate economy
Global Shift (1970s–1990s)
- End of Cold War → more countries join global market
- Eastern Bloc + India → open economies
Countries shifted toward capitalism and global trade.
Key Leaders
- Reagan (USA)
- Thatcher (UK)
They believed that governments should step back and let businesses and people keep more of their money.
Policies:
- Lower taxes
- Reduce regulation
- Cut welfare
Effects
| Positive | Negative |
|---|---|
| Economic growth – Businesses had more freedom and money to expand, which helped the economy grow. | Labor exploitation – With fewer worker protections, some companies paid low wages, offered poor conditions, or hired cheap labor. |
| Increased global trade – Fewer rules made it easier to buy and sell goods across borders, boosting international trade. | Environmental damage – Weaker regulations on pollution and land use led to more harm to air, water, and natural areas. |
2. Case Studies of Economic Reform
Chile (Pinochet)
- Shift to free-market economy
- Privatization of industries
Problem:
- Ignored poverty
- Political repression
China (Deng Xiaoping)
Key Reforms:
- End communes → private farming
- Open markets
- Foreign investment
Impact:
- Rapid economic growth
- Rise of inequality
“Let some people get rich first.”
Political Limitation
Tiananmen Square (1989)
- Protest for political reform
- Crushed by government
3. Knowledge Economies
What is it?
- Economy based on:
- Information
- Technology
- Innovation
Examples:
- Silicon Valley (USA)
- Finland
Finland Case
- Invested in:
- Education
- Technology
Result:
- Strong economic growth
- Mobile phone industry
Japan & Asian Tigers
Countries:
- Japan
- South Korea
- Taiwan
- Singapore
- Hong Kong
Strategies:
- Export-focused
- Government-business cooperation
- Strong education
Impact:
- Rapid industrialization
- Poverty reduction
4. Shifting Manufacturing
Global Shift
- Manufacturing moves to:
- Asia
- Latin America
Reason:
- Lower wages
- Fewer regulations
Examples
- Vietnam → electronics & clothing
- Bangladesh → textiles (80% exports)
- Mexico → maquiladoras (NAFTA)
Problems
- Low wages
- Poor working conditions
- Labor protests
Workers protested for better pay and conditions.
5. Free Trade Organizations
Major Organizations
- GATT
Reduce tariffs through multilateral negotiating rounds (e.g., Kennedy, Tokyo, Uruguay), applying the most‑favored‑nation principle to ensure non‑discriminatory tariff cuts among member countries. - WTO
Regulate global trade by enforcing binding rules on goods, services, and intellectual property, while providing a formal dispute settlement mechanism to resolve trade conflicts between members. - ASEAN / Mercosur
Promote regional trade integration by eliminating internal tariffs and harmonizing customs procedures, with ASEAN focusing on Southeast Asian manufacturing supply chains and Mercosur aiming for a common market in South America.
Key Concept
- Lower tariffs → more global trade
Example:
- Tariffs dropped from ~40% → <5%
Criticism
- Favor corporations
- Ignore labor rights
- Environmental concerns
6. Multinational Corporations
What are they?
- Companies operating in multiple countries
Examples:
- Microsoft
- Nestlé
- Mahindra & Mahindra
How They Work
- High-skill jobs → developed countries
- Low-wage labor → developing countries
Effects
Positive:
- Investment in developing countries
- Job creation
- Economic growth
Negative:
- Worker exploitation
- Tax avoidance
- Weak regulation
7. Cause and Effect
Global Economy → Change
- Free markets → economic growth
- Tech → knowledge economy
- Trade orgs → globalization
Global Economy → Continuity
- Inequality persists
- Exploitation of labor continues
Exam-ready Phrases and Sentences
-
Promote economic liberalization
-
Expand global trade networks
-
Reduce trade barriers
-
Encourage foreign investment
-
Shift manufacturing to low-wage regions
-
Develop knowledge-based industries
-
Increase economic interdependence
-
Exploit cheap labor markets
-
Economic liberalization accelerated globalization by reducing trade barriers and encouraging foreign investment.
-
The rise of knowledge economies shifted economic focus toward technology and innovation.
-
Manufacturing moved to developing countries due to lower labor costs and fewer regulations.
-
Free trade organizations such as the WTO facilitated global trade but faced criticism for favoring corporations.
-
Multinational corporations contributed to economic growth while also being criticized for labor exploitation.
LEQ / DBQ 使用思路
可用论点（Thesis Ideas）
- The global economy since 1900 has become more interconnected and market-oriented, but inequalities and labor exploitation have persisted.
- While globalization increased economic growth, it also shifted production and deepened global inequality.