Ans. As the colonised countries gained independence, they had to depend on these institutions for loans. Later, the countries were forced to take loans from Western private banks and lenders. As the US became embroiled in overseas wars, its financial dominance decreased. Meanwhile, companies searched for countries where there were low wages. China fit the description. So, a number of manufacturing hubs were set up in China aimed at bringing the manufacturing cost down. India, too, became a great outsourcing destination for the tech companies.