Practice question · Sort into groups
First globalisation (1870-1914) or second (post-1980)?
Groups: First globalisation · Second globalisation
- Trade in bulk commodities (grain, cotton)
- Gold-standard fixed exchange rates
- Global value chains with components crossing borders multiple times
- ICT enabling real-time coordination
Hints
- One era traded finished commodities; the other trades stages of production.
- Fixed versus floating exchange rates also separate them.
Show the answer
First globalisation: Trade in bulk commodities (grain, cotton), Gold-standard fixed exchange rates
Second globalisation: Global value chains with components crossing borders multiple times, ICT enabling real-time coordination
Why
The first moved commodities under gold; the second moves tasks under floating rates and fibre optics.
Practise The Second Globalization
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More questions on The Second Globalization
- Which factors have begun to slow or reverse the second globalisation?
- Order the second globalisation's milestones.
- In the second globalisation, a large share of trade is in components crossing borders several times before…
- China's WTO entry in 2001 added roughly how many workers to the global labour pool (in millions)?
- Containerisation, fibre optics and barcodes are all credited with enabling global supply chains. What did…
- Match each trade term to its meaning.
- The first globalisation moved grain, cotton and migrants; the second moved components, services and…
- Why did global value chains fragment production across countries?