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The end of the Cold War led to a significant reduction in military spending and a reevaluation of the military-industrial complex, as the perceived threat from the Soviet Union diminished. Defense contractors faced budget cuts and were compelled to diversify into civilian markets or innovate in technology to remain competitive. This shift prompted a consolidation of defense firms and a focus on new areas such as cybersecurity and advanced technologies, reshaping the landscape of military procurement and strategy. Overall, the end of the Cold War prompted a transition from large-scale military readiness to more specialized defense capabilities.

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