R55Contemporary Worlds

Technology's Double-Edged Sword

International regulations and organizations to support economic integration at the global
level were created after World War II. Cooperation was based on the Bretton Woods
Agreement of 1944.
1.Multilateral agreements on trade liberalization:
Bretton Woods Agreement (1944): Established a stable international monetary system with
fixed exchange rates pegged to the US dollar. This facilitated global trade by reducing
currency exchange risks.
General Agreement on Tariffs and Trade (GATT): A series of negotiations aimed at reducing
tariffs and other trade barriers. By 1979, GATT had successfully lowered average tariffs
from 40% to 7%.
Creation of international organizations: World Bank, International Monetary Fund, and
General Agreement on Tariffs and Trade (GATT) were established to promote global
economic cooperation and development.
2. Widening gaps between developed and developing countries:
Despite trade liberalization, several factors contributed to increasing inequality between
developed and developing nations:
Unequal benefits: Developed countries, with their established infrastructure and
technological advancements, benefitted more from trade liberalization than developing
countries. They were better equipped to take advantage of new markets and export
opportunities.
Unequal terms of trade: Developing countries often exported primary commodities like
minerals and agricultural products while importing manufactured goods from developed
countries. The prices of primary commodities tended to fluctuate, while the prices of
manufactured goods generally increased, leading to an unfavorable terms of trade for
developing countries.
Positive Effects:
Economic growth: Increased trade and investment have led to higher economic output and
lifted millions out of poverty, particularly in developing countries.
Innovation and knowledge sharing: The global exchange of ideas and expertise has spurred
innovation in various fields, from medicine and science to technology and business.
Negative Effects:
Widening inequality: The benefits of globalization haven't been evenly distributed, leading
to a widening gap between rich and poor, both within and between countries.
Job displacement: Automation and outsourcing fueled by technological advancements have
led to job losses in some industries, particularly in developed countries.
Increased international cooperation: Established through institutions like the Bretton
Woods System, promoting trade and financial flows.
Focus on trade liberalization: Lowering tariffs and other barriers to facilitate cross-border
trade, particularly in manufactured goods.
Rise of multinational corporations: Expanding their operations beyond national borders to
seek new markets and production opportunities.
Advancement of technologies: Jet airplanes, container shipping, and communication
satellites helped reduce transportation and communication costs, further connecting
economies.
This second wave laid the groundwork for the even more intense globalization witnessed
since the 1980s, often referred to as the "third wave."
Contemporary Perspective:

Looking at the present day, some argue that globalization is entering a "second wave"
characterized by new trends and challenges:

Shifting economic power: Emerging economies like China and India gaining prominence,
with implications for trade patterns and investment flows.
Rise of digital technologies: The internet and e-commerce creating new avenues for global
interaction and commerce, alongside concerns about data privacy and digital divides.
Focus on sustainability: Growing emphasis on environmental and social concerns within
global economic activities, leading to the emergence of concepts like "green globalization"
and responsible sourcing.
Geopolitical uncertainties: Trade wars, protectionist policies, and rising nationalism
presenting challenges to global interconnectedness.
Here are some additional points to consider:
1.The rise of multinational corporations was another key feature of this period. These
companies were able to take advantage of the lower trade barriers and production costs in
developing countries to expand their operations.
2. The oil crisis of the 1970s had a major impact on the Second Wave of Globalization. It led
to higher energy prices and inflation, which slowed down economic growth and investment.
3. The Second Wave also saw the emergence of new technologies, such as container
shipping and jet airplanes, which further facilitated global trade and investment.
Which countries is Nordic?
Facts about the Nordic countries | Nordic cooperation
The Nordic Region consists of Denmark, Norway, Sweden, Finland, and Iceland, as well as
the Faroe Islands, Greenland, and Åland.

In conclusion, the Second Wave of globalization was a period of remarkable economic growth
and international cooperation, but it also laid bare the challenges of managing an
increasingly interconnected world and ensuring that the benefits of globalization are shared
more equitably.

"I see your point, but I also think.. if you were talking about the importance of economic
development, you could follow up with "but we can't ignore the long-term impact on the
environment and the damage it could cause to ecosystems and biodiversity."