The international economy between crisis and rebirth

The chapter examines how Frist World War fundamentally disrupted the first global economy, transforming international business and entrepreneurship. The war had both positive and negative effects on global economic structures. Positive impacts included technological advancements, accelerated industrialisation in peripheral countries, and the development of national industrial champions. Companies were forced to innovate, secure resources, and expand internationally to survive. However, the conflict devastated existing global economic frameworks. International trade sharply contracted, capital markets fragmented, and a wave of protectionism emerged. The cosmopolitan, universalist attitudes of the pre-war era were replaced by rising nationalism and economic isolationism. Key transformations included the disruption of free trade and migration, the fragmentation of international financial markets, the rise of autarkic economic policies, increased state intervention in economies and, finally, the spread of authoritarian regimes. The war effectively ended the first phase of globalisation, setting the stage for a more fragmented and politically unstable international economic environment.