The end of the Cold War brought the Peace Dividend and by the early 1990s, DOD spending had decreased by 75%. Liberalization of trade barriers and a reduction of duties also led to a breakdown in the American apparel industry. Those factors highly threatened to end Alpha Industries.
The conclusion of the Cold War led to the Peace Dividend, resulting in substantial cuts to DOD spending by 1990s. The relaxation of trade restrictions and duty reductions adversely affected the American apparel sector. Such conditions threatened Alpha Industries.