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Gorbachev’s loosening of governmental power created a domino effect in which Eastern European alliances began to crumble, inspiring countries such as Estonia, Lithuania and Latvia to declare their independence. The Berlin Wall fell on November 9, 1989, leading East and West Germany to officially reunite within a year, ending the Cold War. Once the Berlin Wall fell, citizens in Eastern European countries such as Czechoslovakia, Bulgaria and Romania staged protests against their pro-Soviet governments, hastening the collapse of communist regimes across the former Soviet bloc. Other countries—such as the Republic of Belarus, the Russian Federation and Ukraine—followed suit, creating the Commonwealth of Independent States. By the end of 1989, eight of the nine remaining republics had declared independence from Moscow, and the powerful Soviet Union was finally undone. By the summer of 1990, all the formerly communist Eastern European officials had been replaced by democratically elected governments, setting the stage for the region’s reintegration into Western economic and political spheres.
The dismantling of the Soviet Union had many long-lasting effects on the global economy and the region’s foreign trade. Its downfall increased the United States’ influence as a global power and created an opportunity for corruption and crime in Russia. It also prompted many cultural changes and social upheavals in former Soviet nations and smaller neighboring communist countries. Between 1989 and 1991, the gross national product in Soviet countries fell by 20 percent, ushering in a period of complete economic breakdown.