Question

Why do some countries fear increasing economic interdependence?

Answer 1

Today international trade is almost a necessity in the global market. In the past few decades countries are signing trade agreements regularly and forming trading blocs, and the role of transnational organizations has increased in international commerce. Despite all this, there are some countries (and citizens) that are carefully analyzing the growing interdependence among the economies of the world.

Answer 2

Some countries fear the increasing economic interdependence of nations because they believe it will ultimately lead to a loss of control of their own nation's economy. For critics, too many factors are uncontrollable and can leave their nation's economy exposed and open to manipulation by other entities.

In modern history, there have been cases where governments have withdrawn themselves from the world's market. In the latter part of the twentieth century, many Latin American and Caribbean nations implemented import substitution policies that promoted economic self-sufficiency. In the 1970s, there were calls in the US for economic independence because of the Middle East oil crisis and emerging Asian competitors.