#AP World History: Modern - Economic Globalization Study Guide 🌍

Hey there! Let's get you prepped for the AP exam with a super-focused review of economic globalization. We'll break down the key concepts, make connections, and get you feeling confident. Let's dive in!

#Introduction to Economic Globalization

Economic globalization is all about how economies around the world are becoming more interconnected. Think of it as the world's economies becoming a giant, complex network. Here's the gist:

• Increased Interconnectedness: Countries are more linked through trade, investments, and financial flows.
• Multinational Corporations (MNCs): Companies operating globally, not just in one country.
• Global Impact: Affects countries, industries, and individuals worldwide.

#Free Market Economics

After the Cold War, many governments shifted towards free market economic policies. This means:

• Private Ownership: Businesses and property are mostly owned by individuals, not the government.
• Limited Government Intervention: Less government control over markets.

#The Cold War Connection

During the Cold War, the US pushed for free markets to counter communism. The Truman Doctrine is a prime example:

• Monetary Aid: The US gave money to countries like Greece and Turkey to encourage capitalism.

The Truman Doctrine aimed to prevent the spread of communism by supporting capitalist economies.

#Economic Liberalization

Economic liberalization is when governments remove their own control over markets. Key leaders and their policies include:

#Post-Industrial Economies

Many developed countries have shifted from manufacturing to service-based economies. This is called a post-industrial economy. Key points:

• Decline in Manufacturing: Manufacturing jobs decreased in places like the US.
• Outsourcing and Automation: Manufacturing moved to other countries or became automated.
• Rust Belt: Industrial cities in the US Midwest became economically depressed.
• Increased Demand for Education: Jobs in fields like healthcare, engineering, and computing require college degrees.

#The Knowledge Economy

Many MDCs have moved beyond manufacturing to knowledge-based economies. This means:

• Focus on Information: Based on communication technology and the spread of information.
• Key Countries: US, Japan, and Finland are major players.
• Silicon Valley Example: Design and innovation happen in knowledge economies, while manufacturing often happens elsewhere.

#Industrial Production

• Manufacturing Hubs: Latin America (Mexico, Honduras) and Asia (Vietnam, Bangladesh, China) are major manufacturing regions.
• Asian Tigers: Countries like Japan created export-processing economies through education and low wages.

#Multinational Corporations (MNCs)

Multinational corporations (MNCs) are companies that operate globally. Key points:

• Global Scale: MNCs operate in many countries but are headquartered in a specific region.
• Examples: Exxon, Nissan, and Nestle are common examples, but you can use any.
• Knowledge and Manufacturing: MNCs use knowledge economies for innovation and less developed countries for manufacturing.
• Transnational Corporations: MNCs are not confined to the laws of any single country.

#McDonaldization

• Spread of Western Values: The spread of fast-food restaurants like McDonald's and their values (efficiency, predictability, standardization).
• Impact on Culture: Can lead to cultural homogenization and undermine local food systems.

#Final Exam Focus

Okay, you're almost there! Here's what to focus on for the exam:

• Key Concepts: Economic globalization, free market economics, economic liberalization, post-industrial and knowledge economies, multinational corporations, and McDonaldization.
• Connections: Understand how these concepts are interconnected. For example, how did the end of the Cold War lead to economic liberalization?
• Examples: Be ready with specific examples of leaders, countries, and companies. Refer to the table above.
• Impacts: Consider the positive and negative impacts of globalization on different regions and cultures.

#Last-Minute Tips

• Time Management: Don't spend too long on any one question. Move on and come back if you have time.
• Common Pitfalls: Don't just memorize facts; understand the underlying concepts.
• FRQs: Practice writing clear and concise essays. Use specific examples and connect them to the prompt.

#

Practice Question

Practice Questions

#Multiple Choice Questions

1. Which of the following best describes the economic policy of economic liberalization? (A) Increased government regulation of markets (B) Promotion of state-owned enterprises (C) Removal of government controls over markets (D) Focus on protectionist trade policies

2. Which of the following is an example of a country that has transitioned to a post-industrial economy? (A) Bangladesh (B) China (C) United States (D) Vietnam

3. What is a key characteristic of a knowledge economy? (A) Reliance on heavy industry (B) Focus on agricultural production (C) Dependence on communication technology and information (D) Emphasis on low-wage manufacturing

#Short Answer Question

Explain how the end of the Cold War contributed to the rise of economic globalization. Include specific examples in your answer.

#Free Response Question

Analyze the social and economic impacts of multinational corporations on both developed and developing countries. Be sure to discuss both positive and negative effects. (7 points)

Scoring Breakdown (FRQ):

• Thesis (1 point): A clear, historically defensible thesis that addresses the prompt.
• Argument Development (2 points): Providing evidence of social and economic impacts of MNCs on both developed and developing countries.
• Evidence (2 points): Supporting the argument with relevant historical evidence (examples of MNCs, specific countries, etc.).
• Analysis (2 points): Analyzing the positive and negative effects of MNCs on both developed and developing countries.

You've got this! Take a deep breath, review these notes, and go crush that exam! 🚀