Question

European economies after WW II Domestic Activities and International Trade

Answer 1

From an economic and political viewpoint, world’s trading nations have become increasingly interdependent during the post-World War II era. Following World War II, in world trade there was a dramatic expansion aided by international economic development efforts such as the Bretton Woods Conference, the Uruguay Round and GATT. The growth of international trade enhanced the economy of several countries in the world. International communication and costs of transportation have declined creating better integration of the world economies. Countries are more interdependent; and consequently the economic conditions in one country can affect prices, production, employment, and wages in other countries. Countries must work together to assure prosperity for all.

The main benefits of international trade is that countries can use their resources - land, labor, capital and entrepreneurship - in an approach that enhances efficiency; and can limit themselves to those services and products that they can produce more efficiently, and trade them for other services and products that they do not produce. This leads to wealthier countries and a wealthier world. Through specialization and trade, a wide variety of goods are available for consumers to choose from, and at reasonable prices.