The Significance of International Economic Cooperation Essay

This essay delves into the multifaceted concept of international economic cooperation, examining its role in fostering economic growth and interdependence among nations. It explores the significance of cooperation, highlighting the benefits of globalization and trade agreements like the European Union and NAFTA. The essay discusses how international economic cooperation contributes to sustainable economic growth, poverty reduction, and the integration of financial markets. Furthermore, it analyzes the structure of cooperative efforts, the impact of trade on both member and non-member countries, and the potential negative consequences such as the subjugation of home industries and the overexploitation of natural resources. The essay concludes by emphasizing the importance of international organizations in dispute resolution and the overall impact of international economic cooperation on the global economy.

Running head: INTERNATIONAL ECONOMIC CO-OPERATION
International Economic Co-operation
Name of the student
Name of the University
Author note

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INTERNATIONAL ECONOMIC CO-OPERATION
International economic cooperation refers to the economic and the scientific ties that
exists in between the individual countries. It is on the basis of principles pertaining to
equality along with the mutual advantage. The process helps in representing intensification
pertaining to international division of the labour1. The technological revolution that has taken
place across the world has accelerated process pertaining to international division of the
labour. International economic cooperation acts as a pervasive kind of the co-operative
behaviour within global system. This essay argues that international economic cooperation
can helps in sustaining the growth of the countries in the world. This essay discusses the
significance of international economic cooperation and the countries that get the benefits with
the help of this system. The essay also talks about the structuring of the cooperative efforts in
relation to international economic cooperation.
The development pertaining to world economy can be said to be associated with that
of the concept of internationalisation. The main subjects of economic cooperation are the
nation states, unions, world financial centers along with the transnational corporations.
International economic cooperation has increased the interdependence of the various
countries along with the business entities at that of the different levels2. Globalization came
about in the end of 20th century that acted as highest stage pertaining to internationalisation
process. Regional economic cooperation has expanded geographically within Europe, Africa,
Asia along with Middle East.
1 Oatley, Thomas. International political economy. Routledge, 2015.
2 Woolcock, Stephen. European Union economic diplomacy: the role of the EU in external economic relations.
Routledge, 2016.

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INTERNATIONAL ECONOMIC CO-OPERATION
An important integration group can be said to be European Union that was inclusive
of 28 nation states at the beginning of the year 2014. In the early stages, the European
integration was brought about owing to the common problems present in the national
economies. The development of that of North American Free Trade Area (NAFTA) can be
said to be different from that of European model of the integration3. NAFTA has proved to be
useful in bringing about the unity of Unites States along with Canada with that of Mexico.
Mexico has shown lower economic integrators as compared to the partners and hence depth
of that of US-Canadian integration can be said to be higher when compared to the Mexican
one.
International economic cooperation has helped in the durable growth of that of world
economy. Globalization has been able to bring about benefits in the world along with greater
amount of interdependence. Greater interdependence helps in taking care of the fact that the
financial integration has been more inclusive that has worked for the benefit of everyone
living in the world. It can help in bringing about sustained growth of the economy in the
world that can bring about the reduction of poverty in the world4. The regional initiatives
taken in relation to international economic cooperation has helped in enhancing the self-
reliance of the participating countries. The open trade regimes in the era of international
economic cooperation has helped in promoting the efficiency along with the growth of the
countries. The countries that have strong export sector can recover quickly from the impact of
the adverse shocks.
3 Hoffman, Michael ES. "Principles for Post-War International Economic Cooperation." Journal of World
Trade 52, no. 1 (2018): 15-35.
4 Krugman, Paul. "Crises: The price of globalisation?." In Economics of Globalisation, pp. 31-50. Routledge,
2017.

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INTERNATIONAL ECONOMIC CO-OPERATION
The regional trade agreements can help in strengthening sustained growth of the
various countries. The benefits that the countries can get due to the lowering of the trade can
be seen on both the sides of that of the Pacific. The export share of Mexico pertaining to GDP
has been able to double to that of 27 percent after the NAFTA became effective. It has paved
the path for the increasing of intra-Asian trade from that of 24 percent in the year 1980 to that
of 40 percent in the year 20025. The growth prospects in the long term can be facilitated with
the improvement of international along with domestic financial system. The integration into
that of international capital markets has been able to bring positive effects however volatility
of the capital flows has led to problems for that of the recipient countries. The policies along
with the institutions in relation to international economic co-operation can help in coping
with the risks. It helps the countries in building the “shock absorbers” with the help of the
macroeconomic policies that can help a country in surviving the difficult times6. It can help in
addressing the weakness in relation to financial sector with the help of the regulatory
frameworks. The foreign trade can create the way for specialisation that can encourage the
production of various kinds of goods in the different countries7. It can help in producing the
goods at that of a low cost owing to advantages pertaining to division of the labour. It can
help the nations in the world in disposing the goods that is surplus within a country to that of
the international markets.
5 Herdegen, Matthias. Principles of international economic law. Oxford University Press, 2016.
6 Dong, Wonmo. The Two Koreas and the United States: Issues of Peace, Security and Economic Cooperation:
Issues of Peace, Security and Economic Cooperation. Routledge, 2016.
7 Abdelal, Rawi, Mark Blyth, and Craig Parsons, eds. Constructing the international economy. Cornell
University Press, 2015.

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INTERNATIONAL ECONOMIC CO-OPERATION
The countries that will suffer are the non-member countries of the agreements as it
would increase the trade barriers for these countries. The trade can be diverted from that of a
non-member country to that of a member country inspite of the inefficiency in relation to
cost. The member countries have to give up the control over the main policies like the trade
along with the fiscal policies. The international trade that can be brought about with the help
of economic co-operation can have a negative effect in developing the home industries. The
foreign competition can cause the destruction of upcoming industries in the various countries.
The international trade can help in encouraging subjugation along with slavery of the various
countries. It can have a negative effect on the element of economic independence that can
endanger the political dependence of a place. A large number of exports can use up the
natural resources of a place that can prove to be a cause of economic downfall of a country.
International economic cooperation causes the important commodities of a country to be
exported as so that they can earn the foreign exchange8. This paves the path for the shortage
of the goods within the home that can pave the path for inflation. International economic co-
operation provides opportunity to that of the foreign agents in settling down within country
which can endanger the internal peace of a country. It gives rise to rivalries in between the
nations owing to competition existing within that of the foreign markets. This can pave the
path for the wars that can disturb the peace existing in the world. The international trade can
create the way for that of lopsided development of country and these can create the way for
hardships of a nation. The cooperative efforts can be structured with the help of the
international organizations who helps in the arena of dispute resolution. They carry out the
actions that helps in altering the perception of the states. It plays an important role in
8 Haftel, Yoram Z., and Stephanie C. Hofmann. "Institutional authority and security cooperation within regional
economic organizations." Journal of Peace Research 54, no. 4 (2017): 484-498.

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INTERNATIONAL ECONOMIC CO-OPERATION
influencing evolution of that of interstate cooperation that helps the countries in adapting
themselves to the specific circumstances.
International economic co-operation is indicative of economic tie that occurs in
between countries. It is based on the principle of equality and that of mutual advantage.
International economic cooperation has paved the path for the developments pertaining to
world economy. Globalization acts as a useful force in the world that has augmented the
interdependence existing in between the nations. It facilitates financial integration in the
world that can be beneficial for the people living in the world. It can bring about sustainable
growth of economy which can reduce the poverty taking place in the world. The integration
in international market can bring about the positive effects but the volatility can lead to
problems in relation to recipient countries. Policies of the international economic cooperation
can prove to be useful in dealing with the risks. International trade can have negative
consequences for the world and it can act as a disadvantage in the development of home
industries. Foreign competition can lead to destroying of that of upcoming industries in
various parts of the world. International trade can encourage the subjugation of the different
countries in the world.

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INTERNATIONAL ECONOMIC CO-OPERATION
References
Abdelal, Rawi, Mark Blyth, and Craig Parsons, eds. Constructing the international economy.
Cornell University Press, 2015.
Dong, Wonmo. The Two Koreas and the United States: Issues of Peace, Security and
Economic Cooperation: Issues of Peace, Security and Economic Cooperation. Routledge,
2016.
Haftel, Yoram Z., and Stephanie C. Hofmann. "Institutional authority and security
cooperation within regional economic organizations." Journal of Peace Research 54, no. 4
(2017): 484-498.
Herdegen, Matthias. Principles of international economic law. Oxford University Press,
2016.
Hoffman, Michael ES. "Principles for Post-War International Economic
Cooperation." Journal of World Trade 52, no. 1 (2018): 15-35.
Krugman, Paul. "Crises: The price of globalisation?." In Economics of Globalisation, pp. 31-
50. Routledge, 2017.
Oatley, Thomas. International political economy. Routledge, 2015.
Woolcock, Stephen. European Union economic diplomacy: the role of the EU in external
economic relations. Routledge, 2016.