INTERNATIONAL ECONOMIC GROWTH PAPER Essay Example | Topics and Well Written Essays - 1250 words

planetary ECONOMIC GROWTH PAPER - Essay Example discharge trade was also established and its taper was to prevent currency competition. For the next 30 years, it managed to be successful for the relieve oneselfment of common goals but collapsed in 1971.United Kingdoms sparing is currently the fourth largest in the world. Over the first one-half of the twentieth century, it had a peace making and policing role in the world economy. The world wars had brought about a contraction in the world international trade and investment and UK held a prominent position. But over the years, as globalisation occurred, the prominence of UK saw a decline as the foothold of US in the world economy grew stronger after the world wars. In the years of 1920 and 1930s, UK maintained a fluctuating counterchange rate regimen but it created economic instability and created friction between countries. So at the end of the first half of the twentieth century, a fixed exchange rate system was followed to resolve balance of trade problems. However, in the apprehension between US and UK in 1942, UK played a key role assisting US attain the aims of free trade and payments. In 1950, however, other European countries became stronger than the UK economy through economic integration. The Breton Woods agreement was also made on the outline plan proposed by the UK and US. In 1945, the world economy confront a challenge when a shortage for the American currency occurred. The US gave loan to the UK in exchange for the lifting of exchange rate controls from sterling. However, this did not turn out well as others started to save UKs currency and cash in it in US dollars.8. Critically examine the view that the years 1948-73 represented a golden age for the international economy. In 1948, Ludwig Erhard, a German politician, eliminated price fixing and controls on productions that had been enacted by the military rulers and advocated trade liberalization which vulcanized Ger some from the after effects of the Second World War. The International Trade Charter was also agreed in the UN Conference but was not approved in the US. In 1951, the European Coal and Steel corporation attempted to establish free trade for certain materials in European countries. In 1960, European Free Trade Association was formed and it also aimed at the liberalization of trade between member countries. In 1973, OPEC, an embrocate cartel restricted the supply of oil to the world market and raised the crude oil price. As a result of this restriction, exporters in Saudi Arab became rich overnight. The years of 1948-73 were certainly the Golden get on for international economy as the years were characterized by increased trading, due to reduced barriers and abandonment of protectionist policies. This bettered the relationships between countries, increased the emphasis on specialization, raised productivity and thus, brought about economic growth in many countries9. Why did the Asian Tigers achieve su ch