History Short answer Cold War

How was trade important to the economic development of Western Europe, the United States, and Japan during the postwar decades?

-Trade was essential to postwar economic development. In Europe, six countries formed the European Community which allowed free trade among the member nations. This association made trade easier by creating a standard currency and ensuring that there was always market competition. -After WWII, the US remained relatively untouched. Other nations needed US goods and services and foreign trade existed with many newly democratic countries. These factors created a US postwar boom. -In Japan, US aid helped the country rebuild more efficient factories and create a stable economy. The Japanese based their economic success on exports. By exporting high quality goods and limiting imports with tariffs, Japan had a trade surplus.

How did the Cold War develop in the Soviet Union, Europe, and the United States?

After WWII, the US and the Soviet Union emerged as the world's superpowers. The two countries each created European alliances: the American based NATO and the Soviet based Warsaw pact. The two superpowers faced off in Europe where democratic nations occupied the West and Communist nations occupied the East. The two alliances disagreed regarding how Germany should be ruled, splitting the country into East and West Germany. Meanwhile, the US economy, and the economies of the countries it occupied, thrived and the communist economies struggled.

During the Cold War, many nations formed alliances with one superpower for protection against the other. After the Cold War, the United States emerged as the sole superpower. How might this change the nature of alliances?

After the cold war, with the US being the only superpower, the US acts as an "international policeman." During the cold war, many countries allied with the US for protection against the Soviet Union, the other superpower. Without another threatening power, not only is there no one else to ally with, but that alliances will also have different natures. They may be more based in economic support and on keeping the peace rather than winning a war. Many became concerned that the US no longer had a rival threat and find it concerning that a single nation could become as powerful as the United States.

How was the economic development of Western Europe during the Cold War years similar to or different from Japan?

During the cold war, both Western Europe and Japan were supported economically and militarily by the US. In both instances, the countries suffered serious wartime damage from WWII, but with help from the Marshall plan were able to rebuild more efficient facilities. In Japan, the economy was able to prosper specifically because of the high rate of exports over imports. Japan did not have to spend money on military due to US protection, and could focus all attention to industrial prosperity. In many Western European nations, focused turned to welfare programs. However, these programs brought higher taxes and government control and were eventually ended.

What kinds of conflicts resulted from the global confrontation between the two superpowers?

During the cold war, there was no direct conflict between the superpowers. Rather, there were many local conflicts which were indirectly influenced by the the US and Soviet Union. The superpowers generally supplied weapons, training, and aid to certain countries and watched them fight against a country of differing political views.

How did Gorbachev's reforms lead to the breakup of the Soviet Union?

Gorbachev came to power with the economy in bad shape. He brought about many reforms including arms control treaties with the US, ending censorship and allowing some private enterprise. He also called for "glasnost" (openness) and "perestroika" (restructuring). However, these reforms proved to be unsuccessful. Shortages increased and prices rose. Factories could not survive without government support, and unemployment rose. Across the soviet empire, Eastern European countries recognized the beginning of change and demanded independence. Soon, the Soviet Union had split into independent nations and ceased to exist.

Identify similarities and differences between the Soviet Union and the United States during the Cold War.

Soviet Union: -sought to spread communism -command economy -critics faced imprisonment US: -sought to contain communism -free market economy -Americans faced communist accusations -threat of nuclear warfare Both: -sought to spread their idealogy -opposed to fascism

Why was the Soviet Union unable to keep up with the market economies of the West?

The Soviet Union had a command economy in which the government controlled industrial production. The government poured money into science and technology advancements, rather than industrial efficiency. The central planners were unaware of local needs, causing them to produce unneeded goods and import necessary ones. Workers were paid low wages and had little incentive to produce better quality goods. Soviet goods were generally inferior in quality compared to Western goods, making impossible for them to keep up.

Why were Eastern Europeans able to break free of Communist governments and Soviet domination in the late 1980s?

Under Gorbachev's reforms, Eastern Europeans embraced the idea of change and began demanding more. Many countries began to quietly reform and move towards a democratic government. Gorbachev did not make any move to stop the reforms and eventually the communist governments fell. For instance, in Poland, Lech Walesa organized an independent labor union called "Solidarity" which demanded political and economic change. The polish government outlawed the union and arrested its leaders, but unrest continued. Eventually, Walesa was released and was elected president.

What factors contributed to the economic booms after WWII in Western Europe, the United States, and Japan? Why was the economic performance of Eastern Europe and the Soviet Union different?

Western Europe, the US, and Japan: -democratic nations -free markets and trade. -Western Europe and Japan were supported by US economic and military support -rebuilt better, more efficient industrial facilities. -competition with other countries Eastern Europe and Soviet Union: -command economy -inefficient -poured resources into science and technology -local needs were not met due to central economic planning -could not compete with West