P1 Global Economy
Category: Other
Updated: 20 Aug 2019
Contributors
Created byCHEAH CHIEN TZE Year_14
Attachments
Events
Japan: Financial AusterityJapan: GATTJapan: textile enter US marketJapan: Economic TiesTaiwan: Economic TiesJapan: Economic Ties; Diplomatic with SKSK: Economic Ties; Diplomatic with JapanBretton WoodsIBRDMarshall Plan: $17b to 16 European countriesECSCJapan: Security TreatyTaiwan: US economic aid haltedOil Crisis; Yom Kippur WarOPECNixon Shock: US pulled out of Bretton WoodsSix-Day War: Arab oil-producers imposed embargo on Israel supportersOAPECEmbargo LiftedIran-Iraq WarBrazil: began nuclear programme; purchased 8 reactors from WGermanyOil Shock; Iranian RevolutionMexico, Venezuela: oil-producers; introduced deflation to reduce debts, improve BOPEurope, Japan holdings of USD $19.4b; US Gold Reserves $19.5bGroup of Ten created $6b SDRs; $100b currency circulatedUS trade deficit; abandons gold/dollar parity; 10% surcharge on tariffsSmithsonian Accord: dollar devalued 10% against gold; currencies float 2.5% marginSDRs replace gold as world economy principle reserve assetUSA greatest creditor country to worst debtor nationPlaza Accord: devaluation of dollarG-7 measures to stabilise exchange rates and stock marketsUS trade deficit with ChinaAgreement to limit Japanese importsVRAs with Japanese & European steel producersCarter imposed "trigger price mechanism"Japan label US as most unfair trader among advanced industrial countriesEEC: GATT meeting, strong protectionismGSP engaged: eliminate tariffs for 140 poor countriesGATT LTA: quotas, market share limits on cotton & textile importsGATT MFA: 60% Third World yarn & textiles
80% clothing exports restrictedUS, EU trade war: bananas, beefWTO authorized US retaliation on bananasPeriods
Golden Age of CapitalismCrisis YearsRegional and GlobalismFrance: les trente glorieuses
Germany: Wirtschaftswunder
Italy: miracolo economicoJapan: MFNSK: $6b aidSK: Preferential access to US marketsGATT: 8 rounds of trade negotiations$20b investment in Europe; $11.8b in Western EuropeJapan: $2.2b aidSeven Sisters DeclineUS Price InflationDollar GlutFrench challenge to Bretton WoodsDollar remains most important reserve currency; 65% international tradeSurge in protectionist sentimentNegotiated removal of barriers against Japanese importsCongressional pressure for US to take tougher action against Japanese exports & FDIReagan: stem influx of Japanese imports (automobile, semiconductor, motorcycle);
reduce Japan trade barriers, gain greater market share for American firmsWashington, Tokyo: Structural Impediments Initiative (reduce Japanese import & investment barriers)
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