What does Economic interdependence mean?
Definitions for Economic interdependence
eco·nom·ic in·ter·de·pen·dence
This dictionary definitions page includes all the possible meanings, example usage and translations of the word Economic interdependence.
Wikipedia
Economic interdependence
Economic interdependence is the mutual dependence of the participants in an economic system who trade in order to obtain the products they cannot produce efficiently for themselves. Such trading relationships require that the behavior of a participant affects its trading partners and it would be costly to rupture their relationship. The subject was addressed by A. A. Cournot who wrote: "...but in reality the economic system is a whole in which all of the parts are connected and react on one another. An increase in the income of the producers of commodity A will affect the demands for commodities B, C, etc. and the incomes of their producers, and by its reaction will affect the demand for commodity A." Economic Interdependence is evidently a consequence of the division of labour. David Baldwin conceptualizes international economic interdependence as the opportunity costs incurred from potential exit costs that incur as a result of breaking existing economic ties between nations. Others argue that it entails the degree of sensitivity of a country’s economic behavior to policies and development of countries outside its border. Global economic interdependence has grown in the post-World War II period as a result of technological progress (e.g. computerization, containerization, low-cost travel, low-cost communications) and associated policies that were aimed at opening national economies internally and externally to global competition.Some international relations scholars posit that economic interdependence contributes to peaceful relations between states. Other scholars argue that the relationship is more nuanced or emphasize the ways in which interdependence can contribute to conflict between states. For example, through their work on "weaponized interdependence", Abraham Newman and Henry Farrell have outlined how states that possess effective jurisdiction over central economic nodes can use these nodes for coercive economic leverage against adversaries.
Wikidata
Economic interdependence
Economic interdependence is a consequence of specialization, or the division of labor, and is almost universal. The participants in an economic system are dependent on others for the products they cannot produce efficiently for themselves. This physical interdependence implies corresponding linkages in the demands for products and the incomes of the participants. Economic interdependence was described as early as 1838, when A. A. Cournot wrote: Interdependence is not rigid because firms, individuals and nations may change from the production of one set of products to that of another. Its effects are evident in most general equilibrium theory models which usually require a computer to sort out the complex interactions. Economic interdependence may be a source of the aggregation problem. The economic interdependence of nations and groups of nations is of special importance. It describes countries/nation-states and/or supranational states such as the European Union or North American Free Trade Agreement that are specialized because of climate, the availability of labor and capital, and a variety of historical and cultural factors. Such nations or groups may be dependent on one another for any of the following:
Numerology
Chaldean Numerology
The numerical value of Economic interdependence in Chaldean Numerology is: 2
Pythagorean Numerology
The numerical value of Economic interdependence in Pythagorean Numerology is: 2
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"Economic interdependence." Definitions.net. STANDS4 LLC, 2024. Web. 20 Sep. 2024. <https://www.definitions.net/definition/Economic+interdependence>.
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