The economic interdependence of different nations continues to grow
The years prior to the COVID-19 pandemic had seen significant growth in international trade in goods and services. This growth was even higher than the increase in the countries' production.
Thus, an increasing share of production in many countries is traded internationally, increasing the interrelationship between different national economies.
There are a number of factors that explain this growth in international trade:
- The significant reduction of customs barriers. Numerous limits on the maximum quantities that could be exported to a country have been abolished, as well as tariffs on goods.
- Reduction of technical barriers, approvals, and phytosanitary barriers that constitute an obstacle to free trade.
- The great evolution of telecommunications, with the consequent reduction of costs, facilitates international business.
- Greater ease of financial transactions.
- Increased legal certainty in many countries, with greater protection of property, trademarks, and copyrights.
- The strong support of many countries for foreign investment, and the search for new markets and resource advantages.
- The promotion of exports as a factor favoring development by a large number of countries.