International Economics 15th Edition by Robert Carbaugh

Question

International Economics 15th Edition by Robert Carbaugh

النسخة 15الرقم المعياري الدولي: 978-1285854359

International Economics 15th Edition by Robert Carbaugh

النسخة 15الرقم المعياري الدولي: 978-1285854359

تمرين 1

What factors explain why the world's trading nations have become increasingly interdependent, from an economic and political viewpoint, during the post-World War II era?

التوضيح

موثّق

The world's trading nations have become increasingly interdependent during the post-World War II era due to globalization. From an economic perspective, the formation of the European Union, the increasing importance of multinational corporations in the global market, the market power of the Organization of Petroleum Exporting Countries (OPEC), and the creation of the euro all contributed to the linking of the world's economies. Since the end of World War II, countries have exported and imported goods and services more than ever before. Trade became a large share of national output for industrialized countries as a result. The global banking system has also integrated the economies of these trading nations by making foreign investments and international lending possible.
From a political viewpoint, treaties have been signed between industrialized countries to maintain peace after World War II. Another political aspect that brought interdependence among the nations included the theoretical principles that govern international trade. The implementation of tariffs and quotas on products are considered political actions taken to protect domestic firms from foreign competition. These barriers are also placed on immigrants to restrict the inflow of foreign workers that compete with domestic workers for jobs. These policies contributed to the globalization of countries after the war by signaling that changes in one country can very well affect another.