Global Interdependence
Self sufficiency:
- No real trade (intercontinental)
- Cottage industries to serve oneself and neighbours
- No diversity in products
- Segmented population
- Limited interaction with other communities
Roman Empire encouraged trade in continental Europe
- satellite areas got products not native to their area
- Satellite areas shipped their native goods to Rome
- Distribution centre developed in Rome (hub)
Magellan developed links with offshore
- Discovery of seafaring lanes allowed for easier transport of goods
- Technology in shipbuilding advanced with exposure to foreign ideas
- Shipbuilding became more economical all-round
Industrial Revolution advances production rate
- Cottage industries are swallowed and/or stomped out by factories
- More product means more markets needed
- Exploration and colonialization increased to a furious pace
Wars spread across Europe
- Foreign invaders and invadees exchange ideas and products
- Destruction brings need for rebuilding and product
- Streamlining of production, taking advantage of strengths
- Limit competition from smaller producers who have changed to meet nationalist goal
WWII
- Innovations in transportation
- Innovations in technology available to the world
- Development of multi-nationals
- Race for dominance inspires scientific research
- Emphasis placed on control of technology and communications
- Exploitation of environment seen as a natural process in industrialization
Types of Interdependencies
1. Economic and Trade
a. Natural resources
b. Specific markets
c. Specified
2. Agricultural
a. Exchanging native product for foreign product
b. Developing agreements
c. Cycled networks
d. Consortiums and boards
e. Tariff barriers
3. Distributional
a. Restricted by age old patterns
b. Need for basic technology
4. Informational
a. Special data (marketing)
b. Military alliances
c. Technological control of specific areas
d. Ability to access networks for trade
5. Military
a. Alliances affect trade
b. Assistance in arms
c. Inspires foreign economic aid
6. Financial
a. Monetary levels
b. Currencies
c. Stock market centres