Economic interdependence is in trade. You see a

Economic Interdependence today is much more prevalent then economic Interdependence prior to the First World War. The reason for this is the rise of globalization, which is where the economy becomes more connected economically1. Prior to the First World War there was no WTO, there was GATT but that came after World War one. You also saw more trade deals that were dealing with only one other country, today you see trade deals that have entire regions, such as the TPP which included around 12 other countries2. You are also seeing industries like finance, which basically does very large deals overseas in terms of investing. However, the area where you see the most interdependence is in trade. You see a lot of tariffs getting lowered because of the World Trade Organization3. This makes trade easier among countries, despite recent protectionist candidates emerging in many different countries. This interdependence that we are seeing is kind of a mixed thing, the reason why is that any sort of issue can be felt by another country. An example of this is the 2008 financial crisis and according to the World Bank Group it affected “emerging markets”4. You really did not see this in the period before world war one, so I think you could say that this new type of interdependence has a potential downside.

1 “Globalization.” Merriam-Webster. Accessed December 14, 2017. https://www.merriam-webster.com/dictionary/globalization.

 

2 “Trans-Pacific Partnership Agreement.” Electronic Frontier Foundation. Accessed December 14, 2017. https://www.eff.org/issues/tpp.

 

3 Dean, Adam. “WTO lecture .” Lecture.

 

4 “Global Financial Crisis and it’s impacts on developing countries .” World Bank Ground . Accessed December 14, 2017. http://siteresources.worldbank.org/INTGLOMONREP2009/Resources/5924349-1239742507025/GMR09_ch01.pdf.

Dont know publishing date, presumably after crisis

 

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