Chapter 1, Problem 1SQ

To determine

Determine the factors that explain the increasing interdependence among the world’s trading nations.  

Explanation of Solution

The world’s economy shows an increasing interdependence in terms of movement of goods and service, capital, and technology throughout the post-World War II era. The historical evolution of the economic and political order of the world reflects through the interdependence between the current economies. Europe and Japan have reindustrialized since the Second World War. Moreover, the emergence of European Community and the organizations of petroleum-exporting countries, as well as the growth of multinational corporations, have led to stronger economic and political relations.