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In Budapest in 1956 and in Prague in 1968, the Soviet Union had restored order through a large show of force. That this didn’t happen in 1989 was an indication to all that the Soviet Union was itself collapsing. Bush’s refusal to gloat or declare victory helped him maintain the relationship with Gorbachev that Reagan had established. In July 1991, Gorbachev and Bush signed the Strategic Arms Reduction Treaty, or START    , which committed their countries to reducing their nuclear arsenals by 25 percent. A month later, attempting to stop the changes begun by Gorbachev’s reforms, Communist Party hardliners tried to remove him from power. Protests arose throughout the Soviet Union, and by December 1991, the nation had collapsed. In January 1992, twelve former Soviet republics formed the Commonwealth of Independent States to coordinate trade and security measures. The Cold War was over.

American global power in the wake of the cold war

The dust had barely settled on the crumbling Berlin Wall when the Bush administration announced a bold military intervention in Panama in December 1989. Claiming to act on behalf of human rights, U.S. troops deposed the unpopular dictator and drug smuggler Manuel Noriega swiftly, but former CIA connections between President Bush and Noriega, as well as U.S. interests in maintaining control of the Canal Zone, prompted the United Nations and world public opinion to denounce the invasion as a power grab.

As the Soviet Union was ceasing to be a threat, the Middle East became a source of increased concern. In the wake of its eight-year war with Iran from 1980 to 1988, Iraq had accumulated a significant amount of foreign debt. At the same time, other Arab states had increased their oil production, forcing oil prices down and further hurting Iraq’s economy. Iraq’s leader, Saddam Hussein, approached these oil-producing states for assistance, particularly Saudi Arabia and neighboring Kuwait, which Iraq felt directly benefited from its war with Iran. When talks with these countries broke down, and Iraq found itself politically and economically isolated, Hussein ordered the invasion of oil-rich Kuwait in August 1990. Bush faced his first full-scale international crisis.

In response to the invasion, Bush and his foreign policy team forged an unprecedented international coalition of thirty-four countries, including many members of NATO (North Atlantic Treaty Organization) and the Middle Eastern countries of Saudi Arabia, Syria, and Egypt, to oppose Iraqi aggression. Bush hoped that this coalition would herald the beginning of a “new world order” in which the nations of the world would work together to deter belligerence. A deadline was set for Iraq to withdraw from Kuwait by January 15, or face serious consequences. Wary of not having sufficient domestic support for combat, Bush first deployed troops to the area to build up forces in the region and defend Saudi Arabia via Operation Desert Shield ( [link] ). On January 14, Bush succeeded in getting resolutions from Congress authorizing the use of military force against Iraq, and the U.S. then orchestrated an effective air campaign, followed by Operation Desert Storm    , a one-hundred-hour land war involving over 500,000 U.S. troops and another 200,000 from twenty-seven other countries, which expelled Iraqi forces from Kuwait by the end of February.

Questions & Answers

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
can you send the book attached ?
Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
explain standard reason why economic is a science
innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
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Source:  OpenStax, U.s. history. OpenStax CNX. Jan 12, 2015 Download for free at http://legacy.cnx.org/content/col11740/1.3
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