People frequently accompany trade and investment flows. y International trade and international investment are two main elements of the growing interdependence of the world's economics commonly referred to as globalization. ... For example, let us assume that there are two countries - A and B. ... In all years since 2001, for example, the share of growth in world merchandise trade held by East and South Asia has outpaced that of all other developing countries combined, and a similar proportion prevails in trade of services. ... Thirty-one out of 45 sub-Saharan African nations are LDCs (a...

• Word Count: 1844
• Approx Pages: 7
• Grade Level: Undergraduate

For example, the US with its sheer power and economic size would be able to have its way with almost any other nation in almost any situation, and thus the other country would be forced to comply with all the demands of the US or give up the trade entirely. ... Two centuries of unilateral trade policy by the United States are characterized by such backward decrees such as the Reciprocal Trade Agreements Act and the Smoot-Hawley tariffs. ... There is a political interdependence between a nation and its trading partners, which is affected by trading policies. When the United States and the Unite...

• Word Count: 1960
• Approx Pages: 8
• Grade Level: Undergraduate

He defined four types of interdependencies: (1) indifference; (2) instrumentally interdependent, in which actors are concerned with the action from other parties that could affects them; (3) situationally interdependent, in which actors" welfare depends on improvements in others" welfare and vice versa, independent of the actors" actions; and (4) emphatic interdependence, in which actors are interested in the welfare of other parties for their own sake. ... To link the two aspects of institutions, i.e. as the object of state choice and consequential, the authors stressed the need for actors (o...

• Word Count: 3042
• Approx Pages: 12
• Grade Level: Undergraduate