Despite much loose talk about the new global economy, today's international economic integ
Capital controls were maintained after the second world war, as the victors decided to keep their exchange rates fixed on arrangement known as the Bretton Woods System, named after the American town in which it was approved. But the big economic powers also agreed that reducing trade barriers was vital to recovery. They set up the General Agreement on Tariffs and Trade (GATT), which organized a series of negotiations that gradually reduced import tariffs. GATT was replaced by the World Trade Organization (WTO) in 1995. Trade flourished.
In the early 1970s, the Bretton Woods System collapsed and currencies were allowed to float against one another at whatever rates the markets set. This signaled the rebirth of global capital market. America and Germany quickly stopped trying to control the inflow and outflow of capital, Britain abolished capital controls in 1979 and Japan (mostly) in 1980. This is part of the reason why continental Europeans tend to worry more about the power of global capital markets. America has been exposed to them for much longer.
Two forces have been driving these increased flows of goods and money. The first is technology. With the costs of communication and computing falling rapidly, the natural barriers of time and space that separate national markets have been falling too. The second driving force has been liberalization. As a result of both the GATT negotiations and unilateral (单方面的,单边的) decisions, almost all countries have lowered barriers to foreign trade. Most countries have welcomed international capital as well.
One of the driving forces of today's globalization is ______ .
A.large cross-border flows of people
B.development of railways and steamships
C.sharp falls in transport costs
D.emergence of network