What was a major factor that contributed to shifts in economic policies during the late 20th century?

The rise of globalization and technological advancements significantly influenced shifts in economic policies during the late 20th century. As economies became more interconnected through international trade, the flow of goods, services, and investments across borders increased dramatically. This globalization was accompanied by rapid technological progress, which not only transformed industries but also changed the nature of work and production.

Countries began to adopt policies that favored free trade agreements and economic liberalization in order to remain competitive in an increasingly global market. Additionally, advancements in technology, such as computers and the internet, revolutionized both communication and production processes, further encouraging countries to embrace new economic models that prioritized innovation and efficiency. This shift towards a more global economy led to policies aimed at reducing trade barriers, promoting foreign investment, and fostering competitive advantages through technology.

In contrast, the rise of communist regimes, while significant geopolitically, did not primarily drive economic policy changes in most Western democracies. The decline of the service sector is not a defining characteristic of the late 20th century; rather, this period saw a growth in the service industry, especially in developed nations. Increased isolationism, while relevant in some contexts, did not dominate the economic discourse during this era, as most countries were engaging more with the global economy.