Chapter 18: The United States and Globalization
Read the following passages in the blue boxes of your textbook and answer the
corresponding questions.
“Great Depression” (290)
1. What was Franklin Roosevelt’s plan to pull the US out of the Great
Depression? What was Hitler’s? Did they work?
“Bretton Woods Agreement” (p. 291)
2. What was the purpose of the Bretton Woods Agreement and why didn’t it
work?
“Addicted to Cheap Oil” (p. 292)
3. Why is America more vulnerable than Europe or Japan to oil price hikes or
cutoffs?
4. What is stagflation and when did it occur in the US?
5. What happened in America when prices dropped in 1998?
“International Monetary Fund” (293)
6. What is the purpose of the IMF?
7. What is the purpose of the World Bank?
8. Why do some poor countries say that the IMF and World Bank are unrealistic?
“Who is Richest?” (294)
9. How does the “Big Mac Index” work and what is it supposed to tell us?
“From GATT to WTO” (297)
10. Does the WTO truly practice free trade? Explain.
“Protectionism” (299)
11. How do US farm subsidies hurt Third World farmers? Why does the US
government continue subsidizing American farmers?
“Globe.com” (301)
12. Why does the author say to take information technology (IT) “with a grain of
salt”?