Question

Why did political leaders in the 1980's and 1990's make deliberate decisions to integrate markets and lower barriers to trade on a global level? What international and US concerns were they responding to at the times?

Answer 1

Globalisation is an old process but it developed more forcefully in the 1990's. Globalisation make the countries interconnected. and interdependent.Important developments in the 1990's accelerated the process of globalisation.The Soviet union collapsed in 1989 and there was end of the cold war in 1991.Earlier the communist bloc countries were deliberately isolated from the capitalist west. But in 1990's they integrated into a global market economy.As a result there was increase in trade and investment between the countries.There was reduction in the barriers to trade, migration and cultural exchange between the countries.

US was in favour of reducing trade barriers and coordinating the world economic system since 1930. US felt free trade would advance its own economic interest.It would also help to develop peaceful relations among nations.Thus there was economic and political reasons in favor of integrating markets and lowering barriers of trade.However in the 1980 and 1990 , there was huge trade deficit and that reduced the support of the congress in favor of trade liberalisation. Inspite of this , in 1990 , America made international negotiations like  NAFTA favoring free trade.US believes that free trade promotes economic growth , social stability and benefits other nations as well and offers peace in international relations.