As international prices crashed so did the prices in India. Between 1928 and 1934, wheat prices in India fell by 50 percent. The fall in agricultural price led to a reduction of farmers’ income and agricultural export. The government did not decrease their taxes due to which peasants’ indebtedness increased all across India.
The interconnections could sometimes be broken – for example, labour migration was often more restricted than goods or capital flows. Yet it helps us understand the nineteenth-century world economy better if we look at the three flows together. Explain how the global transfer of disease in the pre-modern world helped in the colonisation of the Americas.
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.
- In Latin America and elsewhere it intensified the fall in agricultural and raw material prices.
- In the mid 1920s, the US gave loans to many countries so that they could finance their investments.
- These were indentured labourers who were hired under contracts which promised return travel to India after they had worked five years on their employer’s plantation.
- The Bretton Woods system effectively came to an end in the early 1970s when President Richard M. Nixon announced that the U.S. would no longer exchange gold for U.S. currency.
- It had a terrifying impact on people’s livelihoods and the local economy.
Between 1928 and 1934, wheat prices in India fell by 50 per cent. This made the lives of peasants and farmers miserable. (iv) This forced the women to outside world in search of jobs.
The Bretton Woods Agreement and System Explained
Thus, their activities were no longer limited to home and hearth. (iv) British agriculture could not compete with imports. Vast areas of land were left uncultivated, and thousands of men and women were thrown out of work. The Making of Global World Class 10 Questions and Answers Provided helps you to answer complex Questions too easily. You can use them while preparing for board exams and all of them are given by subject experts. Reading NCERT Solutions for Class 10 Social Science History Chapter 4 The Making of Global World familiarizes you with the kind of questions appearing in the board exams.
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Faced with falling incomes, many households in the US could not repay what they had borrowed. Thousands of banks went bankrupt and were forced to close. All of the countries in the Bretton Woods system agreed to a fixed peg against the U.S. dollar with diversions of only 1% allowed.
Class 10 History Chapter 4 NCERT Intext Activity Questions and Answers
The purpose of the IMF was to monitor exchange rates and identify nations that needed global monetary support. Today, the IMF has 190 member countries and still continues to support global monetary cooperation. In tandem, the World Bank helps to promote these efforts through its loans and grants to governments. (ii) In the mid-1920s, many countries financed their investments through loans from the US.
In these depression years, India became an exporter of precious metals, notably gold. (d) The Great Depression immediately affected Indian economy. 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. Peasant producing for the world market were the worst hit.
Students are advised to read these solutions on a regular basis to score well. Some who escaped faced reverse punishment and some who stayed back sought to live by making their new destinations as ‘mini India’. (e) The respective governments of the MNCs imposed heavy import tariffs. So the MNCs began relocating their production to Asian countries. The Bretton Woods system—which required a currency peg to the U.S. dollar and linked the value of the dollar to gold—is no longer in effect.
Within two years, it spread in the whole continent reaching Cape Town within five years. Rinderpest had a terrifying impact on people’s livelihoods and the local economy. Planters, mine owners and colonial governments what is meant by the bretton woods agreement class 10 became successful to strengthen their power and to force Africans into the labour market.
The relocation of industry to low wage countries stimulated world trade and capital flows. (c) Most of the killed and maimed in the First World War were men of working age. (d) (i) An integrated global economy had taken place by the early twentieth century. Hence, the impact of the Great Depression could be seen on India too. (ii) As urban centres expanded and industries grew, the demand for agricultural products went up.
(iii) In the nineteenth century, hundreds of thousands of Indian labourers went to work on plantations, in mines, and in social and railway construction projects around the world. These were indentured labourers who were hired under contracts which promised return travel to India after they had worked five years on their employer’s plantation. They used up their savings, mortgaged lands and sold whatever jewellery and precious metals they had to meet their expenses. This made India an exporter of precious metals, notably gold. Indian gold exports promoted global economic recovery but the Indian peasants were bound to lead a miserable life.
These countries were brought together to help regulate and promote international trade across borders. As with the benefits of all currency pegging regimes, currency pegs are expected to provide currency stabilization for the trade of goods and services as well as financing. It wasn’t until 1958 that the Bretton Woods system became fully functional. Once implemented, its provisions called for the U.S. dollar to be pegged to the value of gold. Moreover, all other currencies in the system were then pegged to the U.S. dollar’s value.
It made the feminist movement even stronger.(d) By the early twentieth century, the global economy had become an integral one. India was a British colony that exported agricultural goods and imported manufactured goods. Under the impact of Great Depression, the Indian economy was closely becoming integrated into the global economy.
Along the way the disease killed 90 per cent of the cattle. (iii) The British government also restricted the import of corn by introducing the Corn Laws. But these laws were soon abolished as a result of which food could be imported into Britain more cheaply than it could be produced within the country. The gold standard refers to any monetary system in which the value of currency is linked to gold. Currently, there are no countries that use the gold standard.