Broadband Internet connections and
mobile communications have made fast and efficient business transactions possible. Transactions can be made as fast as the digital processors can handle. Orders, payments, and inventory can be done even if your client or supplier is half-way around the world. This created overwhelming and very challenging international business interdependence. National economies are not anymore as isolated and as safe as before. A change or fluctuation in one economic region can drastically affect the worldwide order. Hence, international economic alliances such as APEC, GATT, OPEC, IMF-World Bank,
European Union, etc. are created to enhance global economic cooperation. Tariffs and other restrictions on trade are minimized or totally eliminated.
The elimination of trade restrictions are supposed to encourage healthy competition among nations and also promote cooperation in certain economic areas. However, this international system is still in its infancy. Many of the supposed positive results are yet to be seen. Presently, many smaller and economically weak nations seem to be mere pawns of the internationals economic games of the industrialized nations. Less developed nations become dumping grounds for substandard and obsolete surplus products. Many underdeveloped nations also become the source of cheap labor.
International investment should develop a social conscience. Investors should invest on international investments that would encourage the development of local industries of the less developed nations, instead of further exploiting them. True global cooperation can only be achieved if all economic players are strong.
