5-4.7

Is Essential For Students To Know:

• After World War II, there was increasing worldwide economic interdependence.
• At the end of World War II, the United States became engaged in a Cold War with the Soviet Union.
• In order to keep more countries from falling to communism, the United States made political alliances with and helped to rebuild Japan, Germany and war-ravaged Europe.
• The United States played a large role in the rebuilding of the Japanese infrastructure.
• The United States hoped that a strong economy in Japan would be protection against communism.
• These nations, particularly Japan and Germany, became economic powerhouses that, in turn, competed with the United States.
• The nations of Europe initially united economically in a Common Market. Now they have formed the European Union with a common currency that facilitates trade. Trade barriers are being lowered around the world as nations negotiate trade agreements.
• Although China was taken over by the communists in the post war period, the Chinese government has recently allowed the development of a market economy. Wages for workers in China, and many other nations, are lower than in the United States. As a result, many companies, including some in the United States, began to move their businesses to China. Consumers have benefited in many ways, including lower prices for goods, however, American workers were negatively impacted when their jobs moved to China.
• Students should be able to understand how many decisions made on the global stage are impacted by economic productivity and world trade as well as political alliances.
• Although specific political, economic, and military alliances are not mentioned in this indicator, OPEC, NATO, the United Nations, etc. are addressed in other areas and a connection to them could be addressed here as well.

It Is Mot Essential For Students To Know:

• This indicator does not require students to describe specific examples of worldwide economic interdependence, but rather understand the underlying concept. While not tested, specific examples are necessary for students to gain a firm understanding of how nations work together for the benefit of global trade.