CHAPTER 28

Global Trade

IN THIS CHAPTER

Summary: The twentieth century witnessed active commercial and trade interactions in virtually
every region of the globe. The Great Depression illustrated the impact of a decline in trade in one
region over trade throughout the world; an example was the manner in which the imposition of
national tariffs in Western Europe and the United States weakened global trade in general. Price and
supply manipulations by oil-producing nations in 1973 and 1979 affected the globe. Multinational
corporations, often using cheap labor in developing nations, increased their influence. Especially
after the decline of communism, more nations implemented free-market economies. Regional trade
associations were organized to facilitate trade, and mass consumerism created a truly global
marketplace. The following sections summarize key events in global trade between 1914 and the
present.

Key Terms

euro
European Economic Community
European Union
import substitution industrialization
McDonaldization
North American Free Trade Agreement (NAFTA)
Organization of Petroleum Exporting Countries (OPEC)
World Trade Organization (WTO)

Middle East (Southwest Asia)

• In 1960, the Organization of Petroleum Exporting Countries (OPEC) was founded to regulate