314 Society and Beliefs
After 1945, two powerful and opposing nations emerged
within the. INTERNATIONAL COMMUNITY: the Soviet
Union and the United States. When the Soviet Union
fell apart in 1991 and the Cold War ended, a new order
began with the USA as the world’s only superpower.
WHEN DID GLOBALIZATION BEGIN?
The term “globalization” was first used in the 1980s,
but trade on a global scale has been going on for
centuries. In the 16th and 17th centuries, Portugal,
Spain, the Netherlands, and Britain built up trading
empires that spanned the world. The Industrial
Revolution of the 19th century also helped to unite the
world’s markets. Global trade slowed down during the
two World Wars, but began to build up again in the
late 1980s, towards the end of the Cold War.WHAT ARE THE RISKS OF GLOBALIZATION?
Creating a truly global market that includes every
nation could make business more efficient, improving
everyone’s quality of life. But if some people are
excluded, the gap between the rich and poor of the
world could grow. Governments must also make sure
that the economic power of a huge business does not
undermine the rights of some sections of society.CAN INDIVIDUAL NATIONS AFFECT GLOBAL TRENDS?
Individual nations may not have much power on their
own, but they can open up their economies to the
world as a whole by working as part of larger
organizations. Nations can also work together to agree
on a set of international rules, which should apply to
businesses wherever they are based and control their
conduct for everyone’s benefit.When the Cold War ended, a vast global
economy emerged. Trade and migration
between countries became easier, and big
businesses set up bases across the world –
bringing new wealth, but also new
problems, to the world. Globalization also
describes the spread of Western culture.WHAT IS THE NEW BALANCE OF POWER?
The USA is now the world’s most powerful country,
giving it a leading role in global issues. Its global
leadership is balanced by regional powers, such as the
nations of the European Union (EU), the Middle East’s
Arab League, and the Association of South East Asian
Nations (ASEAN). Their relationships are marked by
both co-operation and conflict.WHAT TRENDS WILL AFFECT THE NEW ORDER?
Trends such as. GLOBALIZATION will affect how
economic power is shared between nations. Regional
powers, such as the European Union, may become
stronger to counter US power. Security issues such
as terrorism may remain a focus worldwide.IS THE NEW ORDER STABLE?
The Cold War order was made stable by. SECURITY
alliances between nations, to align themselves with
the might of the two superpowers. Nations must now
find other reasons to work together, because stability
will depend on countries agreeing on shared goals.DEVASTATION IN CHECHNYA 3
As the Soviet Union’s power crumbled at the end of the Cold War, many
new conflicts emerged at its borders. In Chechnya, the new leaders in
Russia waged war to stop a movement for national independence.New World Order
1 FACTORIES ABROAD
Sights such as this German
car-making factory in Shanghai,
China, are now more common.
Companies can set up factories
wherever there is a workforce.4 ZEMIN AND BUSH
President Jiang Zemin of China
and President George W. Bush
of the USA met in October 2001
to improve links between their
countries. During the Cold War,
China and the USA were enemies.GLOBALIZATION