 Japan- growing trade gap between U.S. and Japan  U.S. now imports more than it exports  Economist pushing “Buy U.S.A.” CH. 21-4 ECONOMIC COMPETITION.

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Presentation transcript:

 Japan- growing trade gap between U.S. and Japan  U.S. now imports more than it exports  Economist pushing “Buy U.S.A.” CH ECONOMIC COMPETITION

 Reagan- drastically increased military spending  Star Wars- missile defense system that was supposed to blow up incoming missiles in space. DEFENSE SPENDING

 Mikhail Gorbachev- became USSR leader in 1985  Gorbachev began to implement policies in the USSR U.S.-SOVIET RELATIONS

MIKHAIL GORBACHEV

 Supported openness in viewpoints and ideas  Govt. no longer stressing that you have to follow a certain path GLASNOST

 Command Economy- govt. owns the business and regulates what is produced (USSR)  Free Market- private ownership of businesses & people decide what is produced (U.S.A)  USSR moving from a command to market economy PERESTROIKA (RESTRUCTURING)

 USSR could no longer keep up with the U.S. military  People were standing in long lines for very little food  Gorbachev felt his policies would help maintain Communism SOVIET ECONOMIC PROBLEMS

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