While it was often extremely easy to raise loans in the US when the going was good, the US overseas lenders panicked at the first sign of trouble. In the first half of 1928, the US overseas loans amounted to over $1 billion. Countries that depended crucially on US loans now faced an acute crisis. The withdrawal of the US loans affected much of the rest of the world. In Europe, it led to the failure of some major banks and the collapse of currencies such as the British pound sterling.
The Bretton Woods Agreement laid the foundation for modern international financial systems and institutions. Its emphasis on cooperation and stability is what global economic governance is still guided by today. IMF and the World Bank are still part of resolving global financial challenges and promoting economic development globally.
- The Bretton Woods System is an international financial system created to ensure exchange-rate stability, prevent competitive devaluations and encourage economic growth.
- In today’s world of endless information , knowing how to think is more important than knowing what to think .
- They were still facing grim poverty and wanted to come out of it by strengthening their economic condition.
- (i) A new international economic order (NIEO) with actual control over their natural resources.
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The system did help the recovery and development of the world economy, but it benefitted a few nations only. As the dominant partner, the US used the Bretton arrangements to establish its hold and control of global trade. NCERT Solutions Class 10 Social Science PDF (Download) Free from myCBSEguide app and myCBSEguide website. Ncert solution class 10 Social Science includes textbook solutions from part 1 and part 2 part 3 and part 4.
The Making of Global World Class 10 Questions Answers
So, Britain borrowed large sums of money from US banks as well as the US public. Thus, the war transformed the US from being an international debtor than international creditor. India’s exports and imports nearly halved between 1928 and 1934. As international prices crashed, prices in India also plunged. Though agricultural prices fell sharply, the colonial government refused to reduce revenue demands.
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(i) A new international economic order (NIEO) with actual control over their natural resources. (iv) The US attempt to protect its economy in the depression by doubling import duties also gave another severe blow to world trade which aggravated the great depression. Question 7 Explain the three types of movements or flows within international economic exchange.
NCERT Class 10 Social Science Chapter-Wise Solutions
But the US withdrew giving loans if there was any kind of trouble. So countries depending crucially on US loans faced an acute crisis disturbing world trade. (e) From the late 1970s MNCs began to shift production operations to Asian countries because of the low wages. The relocation of industry to low wage countries stimulated world trade and capital flows.
From the sixteenth century, its vast lands, abundant crops and minerals began to transform trade and lives everywhere. Precious metals from mines enhanced Europe’s wealth and financed its trade with Asia. The Vietnam War and other overseas involvements weakened the US economy and made it difficult for the US to maintain the convertibility of the dollar to gold. In 1971, President Richard Nixon announced that the US would no longer convert dollars to gold. The Bretton Woods conference established the International Monetary Fund (IMF) to deal with external surpluses and deficits of its member nations.
Question 1 Give two examples of different types of global exchanges which took place before the seventeenth century, choosing one example from Asia and one from the Americas. (c) Conditions created by the War were also responsible for the Great Depression, during expansion to fulfil the increasing demand for war-related goods. But after the war, the sharp decrease in demands for military and war products gave birth to economic depression. In the mid 1920s, the US gave loans to many countries so that they could finance their investments.
(d) By the early twentieth century, the global economy had become an integral one. The impact of the Great Depression in India was felt especially in the agricultural sector. It was evident that the Indian economy was closely becoming integrated into a global economy. India was a British colony and exported agricultural goods and imported manufactured goods.
It marked the end of an era of economic stability and the beginning of a new era of globalization. The system had a significant impact on the way that businesses and governments operated, and it continues to shape the global economy today. The end of the Bretton Woods system also had a significant impact on the global economy. The system had helped to promote economic growth and stability in the industrial world.
Get all the study material in Hindi medium and English medium for IIT JEE and NEET preparation To download NCERT Solutions for class 10 Social Science, Computer Science, Home Science,Hindi ,English, Maths Science do check myCBSEguide app or website. Sample Paper all are made available through the best app for CBSE students and myCBSEguide website. NCERT solutions for Class 10 Social Science History The Making of a Global World Chapter 4 are available in PDF format for free download. These ncert book chapter wise questions and answers are very helpful for CBSE exam. The BrettonWoods Agreement was finalised in July 1944 at Bretton Woods in New Hampshire,USA.
Decision-making authority was given to the Western industrial powers. The US was given the right of veto over key IMF and World Bank decisions. The Bretton Woods system Opened an era of unique growth of trade and incomes for the Western industrial nations and Japan. Doubtnut helps with homework, doubts and solutions to all the questions. Get solutions for NEET and IIT JEE previous years papers, along with what is meant by the bretton woods agreement class 10 chapter wise NEET MCQ solutions.
Chapters for Class 10 Social Science – India an the Contemporary World – II
Since the late 19th century, South Africa’s economy has been based on the production and export of minerals, which, in turn, have contributed (ii) By the mid-twentieth century, South Africa became one of the world’s largest producers of gold and diamonds. Find out more about gold and diamond mining in South Africa in the nineteenth century.
- The value of the dollar fluctuated wildly, and countries began to adopt different monetary policies.
- Question 1 Give two examples of different types of global exchanges which took place before the seventeenth century, choosing one example from Asia and one from the Americas.
- However, it also created new opportunities for businesses to move their operations to countries with lower wages and costs.
- The system had helped to promote economic growth and stability in the industrial world.
- Countries were also encouraged to fix parity rates for their currencies within 1% of the original rate against the dollar.
Question 8. Explain the causes of the Great Depression.
Find one example of each type of flow which involved India and Indians and write a short account of it. Between 1928 and 1934, wheat prices in India fell by 50 per cent. (d) In the nineteenth century, colonial India had become an exporter of agricultural goods and importer of manufactures. (i) America’s vast lands and abundant crops and minerals began to transform trade and lives everywhere from the 16th century.