Just after the Second World War, the world faced yet another economic set back in the name of cold war. The lengthy cold war however came to an end with the decline of the Soviet Union and the collapse o the Berlin wall. The world market opened up with the opening of free market in the individual states that had split from the former Soviet Union plus other nations of the Eastern Europe (Staley 2008). The Eastern Europe was very critical player for increased globalization in the 1990s.
Most of the nations in the region joined the world trade organization and played a significant role as a supply foundation in to the western countries.
China’s role in the cold war was a swift one and by the time the cold war was culminating, it had established itself in Asia as the economic stronghold serving as a market and supplier to Japan and other developed nations in the region. China by that time exported about 15% of the total world export.
The United States on the other hand increased its imports from the South America by 4% from 11% in 1960 to around 16% in 1990 (Staley 2008). These were the results of market globalization and improved policies. Emerging Economies
The developing countries have improved drastically and have found a place in the world economy as critical players. These countries have actually increased the value of global economy as they are rapidly developing in terms of industrialization and are being termed s emerging market economies as well. Example of emerging economies are china an India, which have invested in information technology related industries that are a great influence on the world economy, which is also supported by worldwide economic connection (Marber 2008).
Information technology has played a role in facilitating economic growth in most of the countries but it has also come with some negative features which are a threat to economic growth. The major set back in the information technology field was the inventory adjustments that were introduced in 2000. This brought about stagnation and many counties were affected including the US, Japan and most of the European nations.