Innovations in technology radically change military budget allocation from focusing on soldiers development into budget plan that focus on development of weapons and war vehicles.
In the late nineteenth century, industrialized nations able to produce high quality weapons in large quantity due to the industrial revolution. Since those weapons able to eliminate enemies in larger numbers, all countries start to see that focusing their budget for those weapons were far more beneficial.
The exchange that most affected the indigenous people was the one of diseases. Native Americans hadn't encounter the diseases the European brought before, so they hadn't develop immunity to them. This is the major reason of the large death of Native Americans, besides the war between them and the brutality of the Europeans.