The Main Provisions of the Bretton Woods Agreement in 1944 - Assignment Example

History of American Capitalism What were the main provisions of the Bretton Woods Agreement in 1944 Bretton Woods’s agreement pegged all currencies to the American dollar therefore stabilizing currency exchange rates among nations. The agreement increased world trade as people in other nations could buy dollars with their currencies at a fixed rate of exchange and buy gold with them at a set price. There was also a stable and predictable international economic system capable of making the world trade flourish that was every business persons dream in operating across borders. There was free trade which stimulated economic growth at home and global economic development that could in turn spring international political stability. Finally the there was the government’s involvement in global economy, where Americans became more involved with foreign currencies, thus being linked to global economy. 1. In what ways did the continuing expenditures for the military and the effort to explore space affect the business system? The continued expenditure led to the decline of Americas real Gross National Product (GNP), and the nations real GNP. It equally increased inequality in the distribution of income. There also was a decline in world trade as Americans distanced themselves from foreign countries as far as trade was concerned. Free trade became a thing of the past, which then led to a great depression in America’s economy. These expenditures also led to a decline in economic growth. Service industries led to invasion of American products in the world market as never before, leading to American business executives thinking in global terms. They also led to the pent-up demand for goods and services, therefore back at home; people no longer had fears over return to conditions of great depressions. There was big growth on prosperity on business, widening the gaps between center and peripheral firms. Also, the world economy was dominated by large American firms, most of them being the multi-divisional decentralized companies. American firms stood poised to take advantage of the new multinational opportunities, termed by Henry Luce as American century. What was the impact of service industries on the American economy after World War II? IBM became one of the largest US companies as it had 435,000 employees worldwide. It equally had 12 research labs worldwide with a record for most patents generated by a company for 20 consecutive years. It also had great innovations. It was most profitable and large in terms of revenue. IBM was among the largest in terms of market capitalization. 1. Describe how IBM became one of the largest US companies. It was during the 1950s and 60s that the economy of America became in order, as we see the Americas real GNP and nations GNP rising. Price stability was also realized during this period thus contributing to the economic growth of America. The nation, through its involvement in global economy, increased world trade thereby boosting economic growth at home and globally. There also was the lessening of inequalities in the distribution of income which in turn led to a boost in the economy. Fading of traumatic great depression in the economy was realized therefore spreading prosperity over the land. 1. What did President Eisenhower mean by referring to the power of the “military-industrial” complex? The military industrial complex was a formidable union of defense contractors and armed forces that were a threat to the democratic government, with immense military establishment that had joined with a large arms industry. It strangled the nation’s economy as costs of an arms raise with the Soviet Union and resources; it would take from other areas like building hospitals and schools was high. Also, in case the military and arms industry gain power, there would be a threat to democracy with civilians losing control. Differences were to be composed with arms and not intellect and decent purpose during this period. Ralph Nader impacted on the American consumer by holding anti-nuclear movement in favor of solar tidal wind and geothermal for environmental and worker safety. He introduced a tax reform that aimed at rolling of costs of auto-insurance through California initiative. He condemned high heels as he felt it was a way of inflicting pain on women to please men. Ralph equally warned of health hazards of red dyes used as food colorings and of nitrates used as preservatives in hot dogs. The civil rights bill provided the right to be served in public facilities like hotels and theaters. It encouraged desegregation of public schools and the attorney general to enforce the act. It also prevented discrimination by government agencies that received federal funds. It provided individuals with a right to vote through equal application of voter registration requirement and outlawed all forms of discrimination. Question 7 In terms of environmental regulation, environmental protection agency seeks to control water and air pollution. For consumer regulation, the US food and drug administration bans harmful drugs like the occupational safety and health administration that prevent workers from hazards they may encounter in their jobs. This equally applies to worker safety. The government sued tobacco companies over health risks of cigarette smoking in the protection of the health of the people. Question 8 The Taft Hartley Act helped in equalizing legal responsibilities of labor organizations and employers. It also protected employers from their supervisors by granting the powers to do away with those who didn’t go by their stated rules and regulations. It promoted occupational safety, health, and provided employers with the right to oppose unions. Its legacy continued as it aimed at protecting rights of the employer and laws that oppressed them. It’s also through it that the national labor relations board was formed. Question 9 Americas automobile industry through Henry Ford’s invention of the automobile and mass production techniques, made the machine affordable thus transforming Americas economy to prosperity. It also received government loans which enabled it make car brands that would favorably compete with the US thus recapturing its dominance. It continued to offer innovative car features and designs made with new aerodynamic. There also was the organization of united auto workers union and manufacture of fuel efficient cars which were also smaller. 3 American firms bought stakes in foreign companies to exploit the growing overseas markets, when Honda opened a US factory. Question 10 Franchising is a business strategy for getting and keeping customers that is geared towards creating an image in the minds of current and future customers about how the company’s products can help them.It distributes products and services that satisfy customer needs. This led to dinning and vacation companies efforts in improving the quality of their products and services so as to entice and win customers on vacation who were after good treatment. Both Bill Gates and Steve Jobs were men of great vision and made products that not only fit their vision, but something they genuinely wanted to use. Both had the correct vision of how the tablet would become broader in the computing future, their products being made with visionary philosophy in mind. The vision of Bill appealed more to the business audience while Steve’s appealed to the masses. Deregulation led to American owned international carriers being allowed to offer domestic service and the elimination of civil aeronautics boards authority to set fares. It also led to expedition of processing various requests a requirement by Civil Aeronautics Board. Mutual agreements which were in existence were terminated between air carriers. There also was liberalization of standards for the establishment of new airlines. There was a reduction in the number of banking organizations and dramatic rise in off-balance sheet activities. There also was a major expansion in lending to U.S corporations by foreign banks. Banking equally experienced widespread adoption of aims and the opening up of interstate banking markets. Fewer families established homes as part of farmsteads where the work routine involved both husbands and wives engaging in income generating activities. New jobs for the skilled and unskilled workers were created. Family income shifted to dependence .Middle class women worked before marriage and re entered the wage earning labor force if there was a demand in finances. Women were expected to make homes as a sign of their womanly responsibility. Middle class households differed in their integration in the consumer economy but aspired for the same sort of life. It was a burden creating hones what ensured good health and at the same time raising the social status. People also wanted homes that could reflect their economic prosperity. New consumers hypothesized middle class women as frustrated and only strugglers of survival. Carrie is notoriously led by emotions. She is selfish and also humorous. She also is the type that is never willing to give up. Carrie is also determined to get what she wants no matter the case. She also believes in multiple relationships. She has a blame game syndrome and equally has a sense of pride in herself. There also is a sense of openness in her with those close to her. She also is iconic and a lover of fashion. Consumers valued the material world and affixed meaning to objects based on cultural trends and designs.Consumers also made choices without having reasons for the choices. People also did purchasing without caring about the expenditures even when their earnings were peanuts. There was increased buying power to follow tastes, with the relationship with neighbours deteriorating as peoples minds were in shopping areas and the artists they admired. Clothing as middle class was replaced by casual wear and office attire with the casual one. Women ran away from their home duties to seek office jobs, as gender biasness in the job market when it came to ladder climbing increasing by the day. Through magazines where one could identify their likes and go for them. also shopped in supermarkets and through picking out of goods from stalls, as in the case of groceries. There also was buying on credit and also thru advertisements where people could shop online. It was during this period that the automobile was introduced and only two out of three families owned cars. Some families however saw no sense in owning cars. Other families had lots of leisure especially when the automobile was involved. Those who really felt they had to own a car had it on credit. It is during this period that cars were used to go to grocery stores and commute to work. Cars, according to parents, improved the social status of their kids at school. People also began to love cars during this period. People spent time reading magazines, found their tastes and later on purchased. It was hard to tell apart the origin of brands. There also was a trial and error quest for national markets. Eye catching packages lured the consumer when it came to getting the right good they needed. It also improved daily life, with middle class women all over the nation being reached. Magazines had great advert mediums and there was easy bargain on purchasing. They also replaced shopkeepers and were also able to save time. People could listen to music in the finest band through phonographic means. Radio delivered quality performances was immediate and had fidelity. It also had potable models for easier mobility and a reliable means of communication over long distances. People could listen to records in sound proof, booths, deciding which ones to buy. Radio equally provided fans with opportunities to read favorite artistes and listen to music while waiting on shoppers. One could also keep a collection of records for future reference. General motors’ helped dealers and consumers to pay for general motor cars. It also extended credit directly to consumers and borrowers had to put down a third of the price and repay in installments within twelve months. One could also trade in their old cars for better models. On the other hand Ford motors sold their cars in installments, aided by local finance companies. It joined the industry for ten years and encouraged a weekly purchasing plan. It also emphasized delayed gratification and reinforced discipline. Ford motors bowed to cultural initiatives of getting and spending. It had extended auto mobility and lent cash for vehicle purchases. Buyers were faced with the problem of pulling together enough funds to buy new brands of cars. The male factory workers had little wages hence could not be able to purchase certain models in cash at once. Maintenance cost in terms of cost of tyre, gasoline, oil and tune ups were also very high for those who had lower wages. Therefore, credit facilities made it possible for people to navigate through financial obstacles and extended automobile ownership. Subsidiary installment plan also made it possible for those living on small incomes to buy cars. During the Victorian era, many consumers who wanted to upgrade to the middle-class lifestyle were able to purchase goods on credit given their limited means to do so. An example is given of consumers like the Posts who lived for decades from payday to payday and ultimately were strapped for cash. Some dealers needed to borrow funds to meet their early credit plans to buy cash for showrooms. The concept also developed as a result of the need to open up the automobile market which was initially known for buying cash in cash. This market became liberalized through the use of installment plans which enabled consumers to purchase the cash on credit and complete the payment later. Plastics replaced ivory and enjoyed enormous popularity in the early 20th century. They also replaced conventional materials such as wood, metals, and glass in everything that they were used to make from milk bottles to car bumpers. They were applied in commercial spaces and domestic interiors through face lift such as store fixtures, office furniture and consumer goods that were recast in plastics. Consumers got accustomed to eating from plastic plates, cups and dishes which could hardly break when dropped. Plastics also were good at retaining heat better than paper cups. Children dolls and toy cars came to be made of colored plastics. Read More