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International Co-Operation Case Study

During the late1990’s, International co-operation contributed widely to new ideas concerning world trade and economic development. Currently, many countries are growing economically and improving their relations with other nations because of further international co-operation. In this essay, international co-operation is defined as the sharing willingly of ideas and work tasks between the bureaucrats of different nations for their own benefit and interest. Damages refer to spoiling something which reduces its importance. Finally, economic growth means an improvement in the economy of a particular country because of an increase in the number of goods and services. This essay argues that International co-operation does not damage economic growth.…show more content…
This is because trade openness plays a crucial role in the development of economic growth. Firstly, world economies integrate through the import and export industries which boost the per capita income of countries. According to Rahman and Mamun (2016, p. 807), the GDP (gross domestic product) per capita in Australia was 27% in 1990 which increases and reached up to 41% in 2013 because of trade openness. This evidence shows that the import and export of goods and services lead to an increase in the GDP of Australia which further helps in strengthening economic development by increasing the per capita income of the country. Due to an increase in the per capita income of the country, people become more stable financially and these financial situations help in the overall economic development of a country. This can be possible only with free trade that occurs due to international co-operation. Moreover, research conducted by Noguer and Siscart (2005, cited in Newfarmer & Sztajerowska 2012, p. 9) examined that 1% increase in export and import of goods and services leads to 1% improvement in the per capita income. This evidence shows that trade openness is directly linked with an increase in the per capita income which further facilitates the economic growth of a country because people have more money due to the increase in per capita income. This solves the financial…show more content…
This is because FDI plays a key role in the fiscal development of countries. Firstly, inward FDI flows into the country leads to increase in the GDP (Gross Domestic Product) per capita in developing countries. According to Boghean (2015, p. 59), the FDI flow in developing countries was nearly 280 million US dollars in 2000 while GDP per capita was about 1.5 dollars, whereas in 2013 the FDI inflows expand up to 780 million US dollars which further expand the GDP per capita approximately 4.6 dollars. This evidence shows that FDI may be required for those countries who want financial development because there is a direct relationship between the FDI inflows into the country and the GDP per capita of the country. Because of the rise in inflow of FDI in developing countries, GDP per capita increases which further aid in the economic growth of these underdeveloped nations. This can happen because international co-operation permits the inflow of FDI into countries which promote economic development. Secondly, FDI also facilitates the transfer of technology and business for economic development of nations. A study by Gigov (2016, p. 348) indicates that FDI plays a vital role in advancing the knowledge and technology, and the transfer of technology and business through FDI makes the countries closer that have a direct positive impact on the economic growth of
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