Summary: The Great Divergence

Without a circulation of currency, there is no strong economy, which is crucial in order to have a modern society. A major reason that Europe began the escape from the Dark Ages by the High Middle Ages was the improvement in their economy. By 1300 there was lots of trading in Europe for example, Italian states trading with northern states and Spanish states trading towards the silk roads (Doc F). Trade changed from being bason on manorial systems to being city-based, widespread trade. The trade routes allowed cities and towns to spring up along them and soon Europe was involved in intra-continental trade, which at long last ended the Dark

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers... In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980s. [43] In 2001, the independent research company Graham Fisher & Company stated that HUD’s 1995 "National Homeownership Strategy: Partners in the American Dream", a 100-page affordable housing advocacy document, promoted "the relaxation of credit

As the results of the redefining of wealth that was taken hold, there was a degree exaggerated would conduct foreign trade on a way larger scale as money became the new medium of exchange in distinction to bartering. Mercantilism began to need hold of the countries of Europe than to the American colonies.Gave beliefs that led to major conflicts during the revolution. At the end of the American revolution was the beliefs of mercantilism an effect on the northern to go to war with the south? Mercantilism has been said to be nothing but governmental regulation of trade and commerce. Significantly right for foreign trade and formed lots of the national aims rather than individual native interests.

Some places had only one-story buildings, others were bigger. In the late nineteenth century, however, there were a lot of buildings, railroads and a better infrastructure overall. Comparing these facts, we can state that the Bronx underwent a huge development of infrastructure. This is due to the process of Urbanization and Industrialization, The city of New York surely became bigger in the Urbanization time. Westchester and Morrisania, which are mentioned among others in 'Satanstoe ', were annexed to the city.

Banks boosted the economy by making loans to people such as manufacturers and increased the monetary supply. Banknotes were used as loans, and became the currency for transactions. Federal and state governments didn’t use paper money, which lead to a dependency on banknotes. However, that also meant that there were counterfeits and people taking advantages over others. Banks would therefore decide on who to have loans, as well as discount rates, leading to a large increase of power that banks would have.

During Renaissance period, commercial activity extremely increase especially in the area of national and international trade. This expand the industry of banking to give more financial services for people that made it easier for the people to have their own business even they are far away from home. During Medieval ages, merchants have to walk thousands of kilometers and go through long distance trade routes to sell their rare and exotic goods to satisfy their customers’ needs and wants from far away. As the time pass the economy improved and started making new ways of making money such as making loans, they borrow money, transferring money and funds to different regions of Europe and trading different kinds of money. This system was very important during Renaissance period and medieval period because this type of business led many people to earn money by

The industrial revolution of the 17th and 18th century provided the economic and technological spur that many European countries and America lacked. As a result of the industrial revolution, the world trade markets saw a tremendous increase, with materials being transported between the nations at a frantic rate. The profits soared while the need for raw materials had never been that high, as it was during those times. That forced many of the industrialized European countries to rethink of new approaches to obtain the valuable materials. The solution came as a form of colonizing the areas that raw materials found abundantly.

Imperialism, a policy of extending a country's power and influence through diplomacy or military force. The Early Modern Era lasted during the 15th -18th centuries and was the era in which the world’s economy began to thrive the most. Global trade, wealth, and production growth and need led to imperialism. Both the Spaniards and the English advanced considerably in conquering new territories. The Spaniards, at first, imported much more than they exported.

Throughout this period, intra-European trade both rose dramatically and constituted a vast portion of global commerce. Moreover, economic integration became sufficiently extensive that, by the turn of the twentieth century, Europe had begun to function as a single market in many respects. The industrial revolution and technological advances attendant to it that facilitated inter-state commerce clearly had pronounced effects on European integration; but so did the creation of various customs unions and bilateral trade agreements. Besides the well-known German Zollverein, the Austrian states established a customs union in 1850, as did Switzerland in 1848, Denmark in 1853, and Italy in the 1860s. The latter coincided with Italian statehood, not an atypical impetus to the initiation of a PTA in the nineteenth century.

Multinational corporations can be defined as enterprises operating in several countries but are managed from their home country. Generally, any company that acquires a quarter of its revenue from operations outside of its home country is considered to be a multinational corporation. Today the multinational corporations have a radical effect on the economic system all over the world. This is due to the growth of international business of the multinationals, which has tremendous effect on the traditional forms of international trade and capital flows for economies at large. In the world economy they create a powerful force.