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Cross Cross National Cooperation National Cooperation and Agreements and Agreements Tariff and Non Tariff and Non Tariff B Tariff BG

This document discusses the global financial environment, including international cooperation between nations, barriers to trade, and internationalization of industries and financial services. It focuses on the reasons countries cooperate economically, such as realizing greater cooperation is needed after World Wars to promote growth. Cooperation allows countries to specialize in what they have a comparative advantage in and trade for other goods, providing benefits to all involved in a win-win situation. Different types of agreements have emerged between nations seeking economic benefits.

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63 views10 pages

Cross Cross National Cooperation National Cooperation and Agreements and Agreements Tariff and Non Tariff and Non Tariff B Tariff BG

This document discusses the global financial environment, including international cooperation between nations, barriers to trade, and internationalization of industries and financial services. It focuses on the reasons countries cooperate economically, such as realizing greater cooperation is needed after World Wars to promote growth. Cooperation allows countries to specialize in what they have a comparative advantage in and trade for other goods, providing benefits to all involved in a win-win situation. Different types of agreements have emerged between nations seeking economic benefits.

Uploaded by

ysrinivasulu
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

WORLD FINANCIAL ENVIRONMENT

National Cooperation and Agreements Tariff and NonTariff Barriers Non Barriers World Trade Organization Regional Blocks
 Cross

WORLD FINANCIAL ENVIRONMENT


International Production Internationalization of Service Firms Operational Management in International Banks Non Banking Financial Service Firms Stock Markets

Cross National Cooperation and Agreements


The cooperation between Nations to collaborate and prosper together is technically known as INTERNATIONAL ECONOMIC COOPERATION or ECONOMIC INTEGRATION OF COUNTRIES

Why Economic Cooperation or Integration


 Necessity is the mother of innovation  The great depression which followed the WORLD WARS plunged the world into a period of Isolation, Trade Protectionism and Economic chaos  In the mid to late 1940s, Countries realized that greater Cooperation was needed to help them emerge from the wreckage of world wars

 The spirit of Cooperation was designed to promote economic growth and stability

How Cooperation between Countries helps them


 The answer lies in the Law or Doctrine of Comparative Advantage  A basic motivation of any exchange is that each party hopes to gain more from trading than from not trading

 If a Countrys climate is not well suited to growing Basmati Rice, then it can make better use of its resources by growing something else to which the climate suits and what is grown maybe traded for the Basmati Rice it wants

The logic behind cross national cooperation may be


 Every Country will specialize in producing the products in which it has the largest comparative advantage

 Every Country then trade its produce for products in which it has a comparative disadvantage  A trade price will naturally evolve that will benefit both parties and motivate them to engage in trade  All Countries will have, as a result, higher standards of living.  Since, this is a Win-Win situation to all Winthe Countries involved in it, the Cooperation between Countries sustain.

The promise of increased economic benefits has stimulated a broad array of activities ( including Agreements ) as Countries have tried to strengthen their international trading positions.

Different types of Agreements between Nations


Regional Agreements Bilateral and Multilateral Agreements Producer Agreements or Commodity Agreements

Regional Agreements

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