TH

20 -

HOW DID
CENTURY WORLD
EVENTS SHAPE
CONTEMPORARY
ECONOMIC
GLOBALIZATION?

Leading to War

1914: European empires controlled much of the world

through imperialism
The competition between the European imperial
powers was a factor that led to World War I
1914- Europe was divided into 2 camps:

Triple Entente: France, Great Britain, Russia

Triple Alliance: Germany, Austria-Hungary, Italy (joined the
Triple Entente in 1915)

Colonies of these countries were also drawn into the

conflict

How the War Began

WWI began in Europe.

disputes over colonies in Africa, national borders in Europe, and
the freedom of various groups of people inside the country, then
known as Austria-Hungary.
Nationalism: extreme patriotism
Militarism: placing a higher value on the armed forces and military
goals than on democracy. A solution using armed force is preferred.
June 1914- Archduke Ferdinand of Austria-Hungary and his wife, were
assassinated in Serbia in the Balkans. Tensions rose and when AustriaHungary threatened Serbia, Russia promised to help the small country.
A chain of events then involved each of the European powers:
Aug. 1st: French army mobilized
Aug. 3rd: Germany invaded Belgium. Britain came to the defense
of Belgium, a neutral country.
World War I had begun!

The Costs of World War I

15 million soldiers and civilians killed

Canada lost more than 66 000 soldiers

Conditions in the war were terrible:

Muddy, rat-infested trenches
Constant threat and fear of machine-gun fire,
bombardment, poisonous gas

Life-lasting scars!

Economic Costs of War

European cities, towns, farms, roads, factories, ports, ships,

and railways were destroyed
Many European countries borrowed a lot of money from the
United States

$7 billion owed by 1918: Their economies were devastated

Manufactured goods produced declined 25% from 1913 to

1919
In Russia production had dropped 80%
After the war, many countries restricted international trade
while they tried to rebuild. Why?

The Costs of Peace

The Treaty of Versailles (1919) was the peace treaty

which officially ended World War I.
Germany was to accept full responsibility for causing
the war and, under the terms of articles 231-247, make
reparations to certain members of the Allies.
Many warned that the reparations were too severe.
How could this possibly have led to WWII?
Germany also had to give up its colonies example:
Rwanda

Major Powers at the Treaty of

Versailles

Costs of WWI on Canada

$2.5 million dollars a day

Income tax was introduced to help pay for the
cost
Interest payments totaled $164 million a year
and soldiers pensions cost another $76 million
Unemployment rose. Why?

Assignment

For each of the following points, answer the question

How did this event shape economic globalization?

Russian Revolution
Communist Russia
Treaty of Versailles
Canadas Role in the War

Each should have 2-3 points.

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