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Conclusion –End of Bretton Woods and the beginning of ‘Globalization’

Despite its status as a super power the US could not sustain the status of the US dollar as the world’s principal currency. The ‘fixed exchange rates’ system collapsed and the ‘floating exchange rates’ system was established.

The scene changed in the 1970s, as high wages demanded by the western society forced Multinational companies to shift their production base to the developing nations were the wages were much lower. This relocation stimulated world trade and capital flow and a truly global economy took shape.

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