Question

What’s your thought on the future development of global economy in terms of the integration of countries through cross-national cooperation and agreements?

Will the global economy more integrated or disintegrated?

Will countries stress more regional integration?

Will countries try to be more self-sufficient and decrease their dependence on trade?

--Support your points with research evidence and critical thinking--

Answer 1

Over the years, countries primarily have preferred two main methods or modes of development these are namely protectionism and capitalism. Capitalists have argued in favour of lifting trade barriers and taxes and provide a level playing field to all countries to engage in trade. On the other hand, protectionism has focussed on self-reliance and increasing local production while reducing the imports which a country has over the years.

The end result however for those that have preferred protectionism is that they have experienced deep decline in living standards as well as slow economic growth. This has been one of the top reasons for countries such as China and India which were earlier the pioneers of protectionism have also chosen a strategy whereby, they have extended free flow of goods and services in their country.

Accordingly, in my belief, cooperation and agreements between countries will rise. Countries have realized that they do not possess all means to satisfy needs and wants of their population and accordingly would need trade arrangements with countries to which it can sell its products on one hand, and take advantage of the goods it lacks on the other.

This concept of mutual benefit will only be extended across all countries and will help them in growing. Countries will try both options of regional integration as well as international trade agreements to benefit from the growing technology and resources in other countries. For example, countries such as United States, Mexico and Canada have entered into free trade agreements on one hand, and on the other have engaged in independent contracts with countries such as China, India, Pakistan and other developing nations also.

It is well settled today, that the growth of the global economy is not possible without considering the economies as one and using the forces of demand and supply for mutual gain of all countries across the globe. If you increase the taxes on countries you will be subject to retrospective measures and could also face a situation whereby you face foreign exchange crisis due to lesser imports and exports.

Thus, in my opinion to maintain profitability it is extremely essential that countries increase economic trade and help each other in growing. It is essential for countries and will only rise considering that global trade and connectivity leads to progress and has been analysed and implemented by numerous countries already.

We can conclude by saying, that cross national and global economy integration will increase, and the dependence on trade would lead to economies booming and being more interconnected than ever.  

Please feel free to ask your doubts in the comments section.