The phenomenon of Globalization changed the trade dynamics during the 1980’s and 90’s. The Americans and Europeans were feeling the heat of competition from emerging economies, which had the advantage of cheap labour but skilled labor, developing economies and zeal to succeed. In the 1990’s many third world countries which were till then only suppliers of raw materials, entered the manufacturing scenario. Brazil became an airplane manufacturer, China took leading position in footwear, textiles and electronics and South Korea started exporting automobiles.