In , Mexico faced political and economic crisis, and the country came to the brink of defaulting omits foreign debt. There was real fear that the country, left to its own devices, could fall into chaos, and millions of refugees would head north into the U.
It worked to stabilize the country, Mexico repaid the money ahead of schedule, and the U. The bailout signaled the private sector that it could make similarly bad future investment choices without fear since the U. Critics feared this would make sovereign debt crises more likely. Seaports and airports are usually located very close tour within Free Trade Zones.
The United States were now able to trade freely with Canada and Mexico, providing great economic growth for all three countries in North America. When trading borders opened up Tijuana became a massive manufacturer of televisions for the United States, Northern Mexico was able to open up many jobs giving opportunities to Southern Mexicans.
This created an economic boom in North America leading to a surge that would be able to compete with other Countries, because this would allow us to buy cheaper goods. It would not work unless there was laws put into effect along with more countries following the guideline this is because it would allow other countries to gain a monopoly against us.
This unprecedented intensity of trade creates a lot of opportunities for wealth creation while on the same note it does create conflict or crises among the nations of the world which intend to have full monopoly of globalization. After the communist regime collapsed, many nations started to tie together their wealth to the global open market. Every country wanted to monopolize the free market that had been allowed among the nation states across the border of U.
However, as advancement in technology takes place and new ideas arise, economic changes on the same note do occur with a lot of things coming into existence. The economic recession of Mexico became a threat to Bill Clinton. This happened due to internet linked financial markets, unlimited capital flows and floating currencies, which led to a tentative venture that interfered with trade in terms of goods and services.
In Thailand, the massive pool of available funds seemed to be a great luck at its initial stages. Later on, it turned into a total catastrophe. Sooner all the Asian countries were overwhelmed with economic crisis. We can tell you something to do about it. We can't tell you it's going to work. It's very risky, and we know it's extremely unpopular, but we think you should do it anyway. I say: "Well, this is a no-brainer. We've got to do this. If we don't do this, Mexico will certainly fail.
Then the borders will be flooded with illegal immigrants who are starving and need food and a job. We'll have an enemy on our Southern border, people that will remember when they were down and they were in need [and that] we were not a good neighbor, and we will pay hugely for that. All over the developing world, people who look at us and think that we are smug and rich and unresponsive and don't care about anybody else will have all that confirmed.
If we help, at least people will know we tried in a good cause, and it will resonate throughout the developing world. Mexico paid back the loan -- early. For some, the intervention set a dangerous precedent: protecting big investors from risks they had willingly taken. President for Economic Policy: Remember, the people that got bailed out were foreign holders of Mexican obligations, so in a sense we were trying to bail out our own citizens.
But it signaled to banks and other rich investors that the U. Treasury at that time was going to adopt a bailout policy. People who take risks should bear those risks. They got the reward for them; they should take the downside. And a decade later it was everywhere, and it would just become part of people's lives.
And so this communications network is so powerful. The price of telephone calls plummeted. The number of telephone calls around the world skyrocketed. And people are in contact and connected in a way that had never happened before. Americans were often connected to the developing world without even knowing it. Consumers checking their credit-card balance could be routed seamlessly to call centers like this one in India, where operators identify themselves with made-up American names.
My name is Tracy. How can I help you? NARRATOR: In a remote Indian village, farmers took their crop to market as they had for generations, But an Internet connection ensured they were now paid the world price for their crop, a price set at the Chicago Mercantile Exchange 8, miles away. This borderless world created a new kind of businessperson. Entrepreneurs could now think like multinationals, and see the entire world as a single market.
Narayana Murthy understood this revolution earlier than most. We were all mesmerized by the charisma of Nehru. Nehru believed in central planning; Nehru believed in socialism. But then I realized that if you want to eradicate poverty, you don't do it by redistribution of existing wealth; you have to create more wealth.
And that's when I got somewhat disillusioned by the socialism as is practiced in India. His headquarters in Bangalore became the world's second largest software campus. Only Microsoft's was bigger. Thirty percent of the world's software engineers are from India.
America relaxed its immigration laws, attracting a huge influx of high-tech workers from across the developing world. This is the place; this is the happening place, so many people come here.
We get a chance to prove ourselves. We get a chance to prove ourselves, to show our skills. Onscreen caption: Two hundred thousand Indians found jobs in Silicon Valley. The Draper family had invested in entrepreneurs since the s, when they brought venture capital to Silicon Valley. In the early '90s, Bill Draper's son Tim funded Hotmail.
Its instant global success convinced him that the world was fundamentally changing. You could do commerce; you could do communication; you could do all these things over the Web. India and Africa, Pakistan, China had all been trapped, and they were not really participating in the world economy. They could now. They could because now they could communicate with the rest of the world through this Internet.
It was a big opportunity, and we saw it; we jumped on it. I think entrepreneurship can happen anywhere. All it takes is someone with a vision and an idea for how to do something better. And this society provided, gave us opportunity and everything. I raised my three children by myself. And sometimes he doesn't remember how old they are.
He embodies the new breed of global entrepreneur. I was born in Beijing, actually right in Tiananmen Square. And we left there after the revolution in We were very lucky we were able to leave the country.
We were like the boat people on top of a cargo ship. We left everything. The only thing [we had] is whatever we could carry. This is a free-trade zone.
Anything you do in here you don't have to pay tariff, or you can build the thing and then ship it out for export purposes. Lee saw firsthand a China in the midst of epic economic transformation. China's Communist leadership had embraced markets and welcomed hundreds of billions of dollars of foreign investment.
Almost one-quarter of the world's population was entering the global market for the first time. Onscreen caption: Economic reforms lifted million Chinese out of poverty. In villages across China and throughout the developing world, people left their rural homes. They traveled to industrial towns, seeking work in new factories built to serve the global market. The era of globalization saw the largest wave of human migration in history.
Eighty percent of the world's future economic growth is expected to occur in cities rather than the countryside. At that time I only earned a month. My parents are both farmers, so we lived a very poor life. But now I'm earning 3, a month. My life is totally different. My child is going to school here, near the factory. So we are living a much, much better life now. When the empire broke up, everybody wanted to do their own trading, and we could easily have withered on the vine.
So we just had to make ourselves relevant to the world. And the countries that make themselves relevant become better off; their people become better off. Those who opt out, they suffer. DANIEL YERGIN: They called it the Asian economic miracle because the world had not really seen that kind of economic growth, that many people brought out of poverty, that rapid a creation of a middle class so quickly anywhere in the history of the world.
Japan, the world's second largest economy, had fallen into a deep, unexpected slump that shook the confidence of its people. After the collapse of the bubble economy, people came back to reality and came down from their dreams. Walk around the Japanese cities, you don't see many foreigners. At the heart of the country's economic problems lay a contradiction. And the other is domestic manufacturing sector which is extremely uncompetitive.
We have a market-oriented capitalistic system on the one hand; we have a very socialistic, egalitarian sector on the other. As Masahisa Naitoh was to learn, ideas about change met with profound skepticism. The new global markets of the s created a new reality. I said we had to change for Japan to thrive in the new world economy. My colleagues in the government criticized me. They said that it was in the best interest of Japan that my ideas be destroyed.
Japan stuck to its old ways, and the nation's economic slump continued. For the first time, an Asian "economic miracle" was in trouble. Sirivat Voravetvuthikun was one of many who thought the good times would never end. I wanted to be rich. I wanted to do something that no one has done -- build a luxurious condominium.
I knew a lot of rich people and multimillionaires would like to take time off to play golf, to enjoy the fresh air in the mountains, which you cannot find in Bangkok. I looked at the golf course. It's designed by Jack Nicklaus. I put my effort into making it one of the most beautiful condominiums in Thailand. Still today, with the mountains in the background, with a fairway and a lake in front of the condominium, it's really beautiful.
And they were tempted by this easy money, tempted by this easy profit. For the first time, local businesses could borrow money from foreign banks which offered lower interest rates. The Western financial world, the banks or the financial companies, they came and begged us to borrow from them.
American and European governments encouraged the inflow of money. We were very strong advocates of opening up capital markets and the benefits that could flow there from, but we were also strong advocates at the same time, because we recognized the tie of developing the banking systems, the capital markets, and developing regulatory systems, none of which is easy.
What that meant is the banking systems were not well developed; securities laws were not well developed. They had not kept up with the development of these economies and their integration into the world economy. The International Monetary Fund, which acts as a bank of last resort to countries in financial trouble, began to worry that Thailand was heading for a fall.
It was full of cranes everywhere, and it looked like the boom would never end. But they were very weak banks who were lending against buildings which were never going to be filled. It was meant to be bigger than Boston. But almost no one was moving in. The vision was to take this huge tract of land and build a city, basically. So the concept was excellent.
It was called the "workshop" of the world. The rich feared the poor both in the countryside and in the fast-growing towns. Nevertheless the great emphasis was made on the individual based on interdependence of Man and Nature. It was an age considered to be the height of the English Renaissance, and saw the full flowering of English literature and English poetry.Churches have been burnt; mosques have been attacked; they have killed each other. I thought the emerging countries -- both emerging economically and those that were new democracies -- had a better chance to do well economically and politically if the wealthier countries opened our borders and made trade agreements with them, and if in turn they opened their borders not only to trade, but to investment. And as people began to wonder, "Well, do they actually have enough dollars to always be able to give me dollars in exchange for the baht, the Thai currency I have? Well, it didn't take a great deal of quantitative insight to see that that was not a long-term viable situation. The series makes good use of commanding large- and Thailand's could spark a global crisis. Going through various heights can enable you to episode lead to essay, and therefore to a more dangerous. No one imagined that an economy as small as few important questions were asked.
I wanted to do something that no one has done -- build a luxurious condominium. At the end, it really became very hard to decide who was to write the rules that would stop all sources of crises pertaining to globalization. Over dinner in an exclusive restaurant, Clinton tried to persuade some of Wall Street's most seasoned executives that he saw the world as they did. And as so often happens, the change came more quickly than the ability of thinking to catch up and understand the change. What that meant is the banking systems were not well developed; securities laws were not well developed.
And like your card does work, and it doesn't work, and the name keeps changing every three weeks. You want the financial system essentially to be like the shock absorber in a car. At that time I only earned a month.
This is a free-trade zone. Japan stuck to its old ways, and the nation's economic slump continued.
Kilimanjaro, Philip Tesha's family has grown coffee for generations. And a decade later it was everywhere, and it would just become part of people's lives. My name is Tracy. We can tell you something to do about it. And at the same time NAFTA did nothing to protect the rights of workers to form unions, to bargain collectively, and to really raise their voices in the political system so that workers could be formidable countervailing power to multinational corporations.
Then the borders will be flooded with illegal immigrants who are starving and need food and a job. You had the contagion sweeping across the developing countries.
Nothing we do in this great Capitol can change the fact that people can move money around in the blink of an eye. My problem with Governor Clinton is that one day he says he's for it, the other he wants to make some changes. Onscreen title: NAFTA: North American Free Trade Agreement For its supporters, trade embodies an idea: that open markets create wealth, bind nations together, and help construct a more prosperous -- and a more secure -- world. Still today, with the mountains in the background, with a fairway and a lake in front of the condominium, it's really beautiful. It is money, the continuous, hour worldwide flows of stocks, bonds, and currencies. Thailand: When the economy went bad, my husband's salary was cut 30 percent.
It was then, and it is now. And this society provided, gave us opportunity and everything. Nevertheless the great emphasis was made on the individual based on interdependence of Man and Nature. I started right from the bottom.
And what that really reflected was indeed globalization, was the way these economies had become locked together and investors looked at emerging markets.