Following the conclusion of World War I and the Treaty of Versailles, global dynamics shifted significantly. The treaty imposed harsh reparations on Germany, redrawing borders in Europe and creating new nations from former empires. This resulted in political instability and economic hardship, contributing to the rise of extremism. Additionally, the League of Nations was established to promote diplomacy and prevent future conflicts, although its effectiveness was limited. The war also marked the decline of European colonial powers and the emergence of the United States as a leading global power, reshaping international relations and alliances.