BUISINESS INTERNATIONAL

To iiencourage iiexports iiand iiinfluence iitrade iiflows iipositively, iigovernments iioften iiengage iiin iitrade iipromotion iiactivities ii(Boutorat ii& iiFranssen, ii2023; iiChai iiet iial., ii2023; iiY. iiLi, iiLi, iiet iial., ii2023). iiThese iiinitiatives iiencompass iia iiwide iirange iiof iiactivities, iifrom iitrade iimissions iiand iiexport iifinancing iito iimarketing iiand iiinformation iidissemination ii(Shi iiet iial., ii2023; iiTian ii& iiZhao, ii2023; iiT. iiY. iiWang ii& iiPark, ii2023). iiWe iiwill iiexplore iithe iivarious iistrategies iiemployed iiby iigovernments iito iiboost iiexports iiand iithe iieconomic iibenefits iiand iichallenges iiof iisuch iiinitiatives. (Ari, 2022) In iicontrast iito iitrade iipromotion, iigovernments iialso iiutilize iieconomic iisanctions iias iia iimeans iito iidisrupt iiinternational iitrade iiwith iicertain iicountries iior iientities ii(C. iiJin iiet iial., ii2023; iiTang iiet iial., ii2023; iiZ. iiWang iiet iial., ii2023) ii. iiSanctions iican iitake iithe iiform iiof iitrade iiembargoes, iifinancial iirestrictions, iior iiasset iifreezes ii(McDaniel ii& iiGhei, ii2022). iiThis iisection iiwill iiexplore iithe iimotivations iibehind iieconomic iisanctions, iitheir iilegal iiand iiethical iiimplications, iiand iitheir iieffectiveness iiin iishaping iitrade iiflows. (Cobham, 2023) Intellectual iiproperty iirights ii(IPR) iiprotection iiis iianother iicritical iiaspect iiof iiinternational iitrade iipolicy ii(Broschek, ii2023; iiJaursch, ii2023; iiJones, ii2023). iiGovernments iiimplement iiand iienforce iiIPR iilaws iito iisafeguard iithe iirights iiof iitheir iidomestic iiindustries iiand iiencourage iiinnovation ii(Ibrahim, ii2023; iiSekwati ii& iiDagume, ii2023; iiSugiharto ii& iiSyaifullah, ii2023). iiThis iisection iiwill iidiscuss iithe iirole iiof iiIPR iiin iiinternational iitrade, iithe iichallenges iiof iienforcement, iiand iithe iiimpact iion iitrade iiflows, iiparticularly iiin iisectors iisuch iias iipharmaceuticals iiand iitechnology. Trade iiand iienvironmental iior iilabor iistandards iiare iioften iiintertwined iiin iiinternational iiagreements. iiGovernments iican iiuse iithese iistandards iito iiinfluence iitrade iiflows, iiensuring iithat iiproducts iimeet iicertain iienvironmental iior iilabor iicriteria. iiThis iisection iiwill iiexplore iithe iimotivations iifor iiincorporating iithese iistandards iiinto iitrade iiagreements iiand iitheir iiimpact iion iitrade iidynamics, iisustainable iidevelopment, iiand iisocial iiresponsibility. (Alami, 2022) No iidiscussion iion iigovernment iiinstruments iiin iiinternational iitrade iiwould iibe iicomplete iiwithout iiaddressing iithe iichallenges iiand iicontroversies iisurrounding iithese iitools ii(A. iiS. ii-, ii2023; iiLeal iiet iial., ii2014; iiNzama iiet iial., ii2023). iiThis iisection

iiwill iitackle iiissues iisuch iias iiprotectionism, iitrade iiwars, iiand iitheir iiimpact iion iiglobal iitrade iistability. iiIt iiwill iialso iiaddress iithe iievolving iinature iiof iiinternational iitrade iiand iihow iigovernments iiare iiadapting iitheir iipolicies iito iiaddress iinew iichallenges, iisuch iias iie-commerce iiand iidigital iitrade. (Arslanalp, 2022) To iiprovide iia iireal-world iiperspective iion iithe iiuse iiof iigovernment iiinstruments iiin iiinternational iitrade, iiwe iiwill iiexamine iicase iistudies iiof iicountries iithat iihave iiemployed iivarious iistrategies iito iiinfluence iitheir iitrade iiflows. iiThese iicase iistudies iiwill iioffer iiinsights iiinto iithe iieffectiveness iiand iiconsequences iiof iidifferent iipolicy iichoices. (Ari, 2022) LO ii7-2 iiwhy iithe iigovernement iisometimes iiintervene iiin iiinternational iitrade International iitrade iihas iibeen iia iifundamental iiaspect iiof iieconomic iidevelopment iiand iiglobalization iifor iicenturies ii(M. iiAhmad iiet iial., ii2023; iiChaseDunn iiet iial., ii2023; iiDavid iiWasike, ii2023). iiIt iihas iienabled iinations iito iiexchange iigoods iiand iiservices, iifostering iieconomic iigrowth, iiand iiinterconnectivity iiamong iinations ii(David iiWasike, ii2023; iiSansika iiet iial., ii2023; iiShandra iiet iial., ii2023). iiHowever, iithe iiextent iito iiwhich iigovernments iiintervene iiin iiinternational iitrade iivaries iiconsiderably iifrom iione iicountry iito iianother iiand iifrom iione iiperiod iito iithe iinext ii(Bressan iiet iial., ii2023; iiCox, ii2023; iiPasseron iiet iial., ii2023). iiThis iiintervention iican iibe iidriven iiby iia iimultitude iiof iireasons, iireflecting iithe iicomplex iiweb iiof iieconomic, iipolitical, iiand iisocial iifactors iiat iiplay iiin iithe iiinternational iiarena. (Amaglobeli, 2022) To iiunderstand iithe iireasons iibehind iigovernment iiintervention iiin iiinternational iitrade, iiwe iimust iifirst iiexamine iithe iihistorical iicontext iiin iiwhich iithese iiinterventions iihave iioccurred ii(Marrow, ii2023; iiMuhajir, ii2023; iiSasi, ii2023). iiThroughout iihistory, iigovernments iihave iiemployed iivarious iitrade iipolicies iito iiprotect iitheir iidomestic iiindustries, iiboost iitheir iieconomic iigrowth, iiand iipromote iinational iiinterests ii(Alemu; iiet iial., ii2022; iiMarrow, ii2023). iiThese iipolicies iihave iievolved iiin iiresponse iito iichanging iicircumstances iiand iihave iibeen iiinfluenced iiby iithe iieconomic iitheories iiof iitheir iitimes. (Ari, 2022) 1. Mercantilism: iiThe iiearly iimodern iiperiod iiwas iimarked iiby iithe iidominance iiof iimercantilism, iia iiset iiof iieconomic iiideas iithat iiencouraged iigovernment iiintervention iiin iitrade. iiMercantilist iipolicies iisought iito iiaccumulate iigold iiand

iisilver iireserves iiby iiexporting iimore iithan iiimporting, iiwhich iioften iiled iito iitrade iirestrictions iiand iiprotectionist iimeasures ii(Amusan ii& iiNel, ii2023; iiCollins ii& iiO’Brien, ii2023; iiShafi iiet iial., ii2023). 2. Free iiTrade iiMovement: iiThe ii19th iicentury iisaw iithe iirise iiof iifree iitrade iiideologies, iiwith iiinfluential iithinkersiilike iiDavid iiRicardo iiadvocating iifor iithe iiprinciple iiof iicomparative iiadvantage. iiFree iitrade iipolicies iiaimed iiat iiminimizing iigovernment iiintervention iiand iiallowing iimarkets iito iidetermine iitrade iioutcomes ii(Alabi, ii2020; iiCohen, ii2021; iiKellogg, ii2021). 3. The iiGreat iiDepression iiand iithe iiInterwar iiPeriod: iiThe iieconomic iiturmoil iiof iithe iiGreat iiDepression iiin iithe ii1930s iiled iito iia iiresurgence iiof iiprotectionism. iiNationsiiimposed iitariffsiiand iitrade iibarriersiito iishield iitheir iieconomiesiifrom iithe iiglobal iieconomic iicrisis ii(Grafl, ii2023; iiHoupt, ii2023; iiOlea iiContreras, ii2023). 4. Post-World iiWar iiII iiEra: iiIn iithe iiaftermath iiof iiWorld iiWar iiII, iiinternational iiinstitutions iilike iithe iiUnited iiNations, iithe iiWorld iiBank, iiand iithe iiInternational iiMonetary iiFund iiwere iiestablished, iipromoting iitrade iiliberalization iiand iicooperation. iiBilateral iiand iimultilateral iitrade iiagreements, iisuch iias iithe iiGeneral iiAgreement iion iiTariffs iiand iiTrade ii(GATT) iiand iithe iiWorld iiTrade iiOrganization ii(WTO), iiaimed iito iireduce iitrade iibarriers iiand iiencourage iieconomic iiintegration ii(Jongerden, ii2023; iiTeorell, ii2023; iiM. iiXu, ii2023). Economic iitheories iiplay iia iipivotal iirole iiin iishaping iigovernment iipolicies iion iiinternational iitrade. iiSeveral iikey iitheories iiprovide iia iiframework iifor iiunderstanding iiwhy iigovernments iimight iichoose iito iiintervene iiin iithis iisphere. (Arslanalp, 2022) 1. Comparative iiAdvantage: iiOne iiof iithe iifoundational iiideas iiin iiinternational iitrade, iiproposed iiby iiDavid iiRicardo, iisuggests iithat iicountries iishould iispecialize iiin iiproducing iigoods iiand iiservices iiwhere iithey iihave iia iicomparative iiadvantage. iiHowever, iicomparative iiadvantage iialone iidoesn't iialways iiaccount iifor iithe iicomplexities iiof iireal-world iitrade. iiSome iiindustries iimight iineed iiprotection iito iidevelop ii(Brakman iiet iial., ii2023; iiSucandrawati iiet iial., ii2023; iiXue iiet iial., ii2023). 2. Strategic iiTrade iiTheory: iiThis iitheory iiposits iithat iigovernments iican iistrategically iiintervene iito iisupport iiindustries iiin iiwhich iithey iibelieve iithey

iican iigain iia iicompetitive iiadvantage iiin iiglobal iimarkets. iiSubsidies, iiinvestments, iiand iiprotectionist iimeasures iican iibe iiused iito iicreate ii"winners" iiin iikey iisectors ii(Ledyaeva, ii2023; iiPetersen, ii2023b, ii2023a). 3. Infant iiIndustry iiArgument: iiThe iiinfant iiindustry iiargument iicontends iithat iiprotectionism iiis iijustified iiduring iithe iiearly iistages iiof iiindustry iidevelopment iito iienable iidomestic iiindustries iito iimature iiand iibecome iicompetitive iion iia iiglobal iiscale. iiGovernment iisupport iimay iibe iinecessary iito iiprovide iithese iiindustries iiwith iia iichance iito iigrow iiand iiachieve iieconomies iiof iiscale ii(Bresser-Pereira, ii2023; iiGandjon iiFankem ii& iiFeyom, ii2023). 4. Balance iiof iiPayments iiand iiExchange iiRates: iiGovernments iimay iiintervene iiin iitrade iito iimaintain iifavorable iibalances iiof iipayments iior iistabilize iiexchange iirates. iiThis iican iiinvolve iimanipulating iicurrency iivalues iior iiimposing iicapital iicontrols iito iimanage iitrade iiimbalances ii(Agu iiet iial., ii2023; iiGuttmann, ii2023; iiSleman ii& iiAli, ii2023). 5. National iiSecurity: iiA iicritical iiconsideration iifor iigovernments iiis iithe iinational iisecurity iiimplications iiof iitrade. iiControl iiover iicertain iistrategic iiindustries iiand iitechnologies iican iibe iideemed iiessential iito iisafeguard iia iination's iisecurity iiinterests ii(Godsell iiet iial., ii2023; iiKruse-Andersen, ii2023; iiLidén, ii2023). 6. Environmental iiand iiSocial iiConcerns: iiIncreasingly, iigovernments iiare iiintervening iiin iitrade iito iiaddress iienvironmental iiand iisocial iiconcerns. iiThis iican iiinclude iitrade iipolicies iiaimed iiat iireducing iicarbon iiemissions, iiprotecting iiendangered iispecies, iior iiensuring iifair iilabor iipractices iiin iiglobal iisupply iichains ii(Asrori iiet iial., ii2023; iiViet iiet iial., ii2023; iiYanyan iiet iial., ii2023). There iiare iiseveral iijustifications iifor iigovernment iiintervention iiin iiinternational iitrade. iiThese iican iibe iibroadly iicategorized iiinto iieconomic, iipolitical, iiand iisocial iifactors. iiIn iithis iisection, iiwe iiwill iiexplore iieach iiof iithese iijustifications iiin iidetail. (Ari, 2022) 1. Economic iiJustifications a. Protection iiof iiDomestic iiIndustries: iiOne iiof iithe iiprimary iieconomic iireasons iifor iigovernment iiintervention iiis iito iiprotect iidomestic iiindustries iifrom iiforeign iicompetition. iiIndustries iithat iiare iicritical iito iia iicountry's iieconomic iiwell-being iior iistrategic iiinterests iimay iireceive iiprotection

iithrough iitariffs, iiquotas, iior iisubsidies. iiSuch iiprotection iiaims iito iishield iithese iiindustries iifrom iiunfair iicompetition iiand iigive iithem iitime iito iibecome iicompetitive ii(Guo iiet iial., ii2023; iiSafner, ii2023; iiViet iiet iial., ii2023). b. Market iiFailure: iiIn iicases iiwhere iimarkets iifail iito iiallocate iiresources iiefficiently, iigovernments iimay iiintervene iiin iiinternational iitrade iito iicorrect iithese iifailures. iiFor iiinstance, iiexternalities, iipublic iigoods, iior iiinformation iiasymmetry iican iilead iito iimarket iiinefficiencies, iiand iigovernment iiintervention iican iihelp iirectify iithese iiissues ii(M. iiBennett, ii2023; iiMesly iiet iial., ii2023; iiSchmidt, ii2023). c. Countering iiUnfair iiTrade iiPractices: iiGovernments iimay iiintervene iito iicounteract iiunfair iitrade iipractices iiby iiother iicountries. iiThis iiincludes iiactions iilike iidumping ii(selling iigoods iibelow iicost), iicurrency iimanipulation, iior iiintellectual iiproperty iitheft. iiTo iiprotect iidomestic iiindustries iiand iimaintain iifair iicompetition, iigovernments iimay iirespond iiwith iitrade iiremedies ii(Gergel, ii2022; iiPirtac ii& iiUrsu, ii2023). d. Preserving iiJobs: iiThe iiprotection iiof iijobs iiis iia iisignificant iieconomic iiconsideration iifor iigovernments. iiHigh iiunemployment iior iijob iidisplacement iidue iito iiforeign iicompetition iican iilead iito iisocial iiand iipolitical iiunrest. iiTo iimitigate iithis, iigovernments iimay iiintervene iito iisafeguard iiemployment iiopportunities ii(Ray iiet iial., ii2023; iiY. iiZhang iiet iial., ii2023). e. Promotion iiof iiStrategic iiIndustries: iiGovernments iimay iiintervene iito iisupport iiindustries iithat iiare iideemed iistrategically iiimportant iifor iinational iisecurity iior iitechnological iileadership. iiThese iiindustries iimay iiinclude iidefense, iienergy, iior iihigh-tech iisectors, iiwhere iiself-reliance iiis iiconsidered iivital ii(K. iiH. iiChen, ii2021; iiHaryanto, ii2013; iiZhong iiet iial., ii2020) 2. Political iiJustifications a. Public iiOpinion iiand iiVoter iiPreferences: iiElected iigovernments iiare iiresponsive iito iipublic iiopinion. iiIf iitrade iiliberalization iiis iiperceived iias iidetrimental iito iidomestic iiinterests, iileaders iimay iiintervene iito iialign iiwith iithe iipreferences iiof iitheir iiconstituents ii(Kenny ii& iiBizumic, ii2023; iiNemčok iiet iial., ii2023; iiWalgrave iiet iial., ii2023).

b. Political iiPressure iifrom iiSpecial iiInterest iiGroups: iiSpecial iiinterest iigroups, iisuch iias iiindustry iiassociations iior iilabor iiunions, iican iiexert iisignificant iiinfluence iion iipolicymakers. iiGovernments iimay iiintervene iiin iiinternational iitrade iito iiappease iithese iigroups iiand iisecure iitheir iipolitical iisupport ii(Nownes, ii2023; iiStergaard ii& iiHalsey, ii2023; iiVernikov, ii2023). c. Geopolitical iiConsiderations: iiThe iigeopolitical iilandscape iican iiinfluence iitrade iipolicy iidecisions. iiGovernments iimay iiseek iito iialign iiwith iior iicounter iithe iitrade iipolicies iiof iirival iior iipartner iinations iito iiadvance iitheir iigeopolitical iiinterests ii(Boute, ii2023; iiHinz, ii2023; iiStinson iiet iial., ii2023). d. National iiSovereignty: iiThe iidesire iito iimaintain iisovereignty iiand iiindependence iican iilead iigovernments iito iiintervene iiin iitrade. iiTrade iiagreements iiand iiinternational iiorganizations iican iibe iiviewed iiwith iisuspicion iiby iisome iileaders, iiwho iifear iia iiloss iiof iiautonomy ii(Aronczyk, ii2023; iiArseni, ii2023; iiStanojević iiet iial., ii2023). e. Retaliation: iiGovernment iiintervention iican iibe iidriven iiby iia iidesire iito iiretaliate iiagainst iiperceived iitrade iiinjustices iiby iiother iinations. iiThis iican iilead iito iitrade iiwars, iiwhere iicountries iiimpose iitariffs iiand iitrade iibarriers iion iieach iiother iiin iiresponse iito iithe iiactions iiof iitrading iipartners ii(Marlow iiet iial., ii2023; iiMathur iiet iial., ii2023; iiSippel iiet iial., ii2023). 3. Social iiJustifications a. Environmental iiConcerns: iiIn iian iiera iiof iigrowing iienvironmental iiawareness, iigovernments iimay iiintervene iiin iitrade iito iiaddress iienvironmental iiissues. iiThis iican iiinclude iimeasures iito iicurb iicarbon iiemissions, iiregulate iithe iiimport iiof iiproducts iithat iiharm iithe iienvironment, iiand iipromote iisustainable iitrade iipractices ii(Mathur iiet iial., ii2023; iiPeisker, ii2023; iiY. iiWu, iiSun, iiet iial., ii2023). b. Labor iiStandards: iiGovernments iimay iiintervene iiin iitrade iito iiensure iithat iiimported iigoods iimeet iicertain iilabor iistandards. iiThis iican iiinvolve iirestrictions iion iiproducts iiproduced iiunder iiexploitative iilabor iiconditions iior iipolicies iito iipromote iifair iilabor iipractices iiin iiglobal iisupply iichains ii(M. iiLi ii& iiHu, ii2023; iiMasino iiet iial., ii2023; iiThomas ii& iiAnner, ii2023). c. Consumer iiSafety iiand iiHealth: iiThe iisafety iiand iihealth iiof iiconsumers iiare iiparamount iiconcerns iifor iigovernments. iiThey iimay iiintervene iiin iitrade iito

iiprevent iithe iiimportation iiof iiunsafe iior iiharmful iiproducts iiand iito iiensure iithe iiquality iiof iiimported iigoods ii(Kyayesimira ii& iiMuheirwe, ii2023; iiLeskovac ii& iiPetrović, ii2023; iiWitczak ii& iiPokorska-Niewiada, ii2023). d. Cultural iiPreservation: iiSome iicountries iiintervene iiin iitrade iito iiprotect iiand iipreserve iitheir iicultural iiheritage. iiThis iican iiinvolve iirestrictions iion iithe iiimport iiof iicultural iiartifacts, iifilms, iior iimedia iicontent iito iisafeguard iitheir iicultural iiidentity ii(Chantamool iiet iial., ii2023; iiReshma iiet iial., ii2023; iiC. iiH. iiWu iiet iial., ii2023). e. Human iiRights: iiGovernments iimay iiintervene iiin iiinternational iitrade iito iiaddress iihuman iirights iiconcerns, iisuch iias iithe iiimportation iiof iigoods iiproduced iiby iiforced iilabor iior iiother iihuman iirights iiviolations. iiSanctions iiand iitrade iirestrictions iimay iibe iiimposed iito iiaddress iithese iiissues ii(N. iiJ. iiBennett iiet iial., ii2023; iiMahdanian iiet iial., ii2023; iiMcVey iiet iial., ii2023). 4. Contemporary iiExamples iiof iiGovernment iiIntervention iiin iiInternational iiTrade To iiillustrate iithe iivarious iijustifications iiand iiforms iiof iigovernment iiintervention iiin iiinternationa iitrade, iilet's iiexplore iisome iicontemporary iiexamples iifrom iidifferent iiparts iiof iithe iiworld. a. United iiStates-China iiTrade iiDispute: iiThe iiongoing iitrade iitensions iibetween iithe iiUnited iiStates iiand iiChina iihighlight iithe iiuse iiof iitariffs iiand iitrade iibarriers iias iia iimeans iiof iiaddressing iiperceived iiunfair iitrade iipractices, iiintellectual iiproperty iitheft, iiand iithe iitrade iideficit. iiBoth iicountries iihave iiimposed iitariffs iion iieach iiother's iigoods iiin iian iiattempt iito iiprotect iitheir iiindustries iiand iiexert iileverage ii(Cheng iiet iial., ii2023; iiKöstner ii& iiNonn, ii2023; iiZheng iiet iial., ii2023). b. European iiUnion iiand iiEnvironmental iiStandards: iiThe iiEuropean iiUnion ii(EU) iihas iiimplemented iistrict iienvironmental iiregulations, iisuch iias iirestrictions iion iithe iiimport iiof iigoods iiwith iihigh iicarbon iiemissions iior iihazardous iichemicals. iiThese iimeasures iialign iiwith iithe iiEU's iicommitment iito iienvironmental iisustainability ii(Moneva iiet iial., ii2023; iiTosun iiet iial., ii2023; iiWeirich ii& iiTurner, ii2023). c. Brazil iiand iiRainforest iiPreservation: iiBrazil iihas iifaced iiinternational iipressure iito iiaddress iideforestation iiin iithe iiAmazon iirainforest. iiSome iicountries iihave iithreatened iito iiimpose iitrade iirestrictions iion iiBrazilian iiagricultural iiproducts iiif iithe iigovernment iidoes iinot iitake iiaction iito

iiprotect iithe iienvironment ii(de iiSant’anna iiLopes iiet iial., ii2023; iiFilho iiet iial., ii2023; iiRadmann iiet iial., ii2023). d. Labor iiStandards iiand iiGlobal iiSupply iiChains: iiThe iiissue iiof iipoor iilabor iiconditions iiin iiglobal iisupply iichains iihas iigained iiprominence. iiSome iigovernments iihave iisought iito iiaddress iithis iiby iirequiring iicompanies iito iidemonstrate iiadherence iito iicertain iilabor iistandards iiin iitheir iisupply iichains, iithereby iipreventing iithe iiimport iiof iiproducts iiproduced iiunder iiexploitative iiconditions ii(Holzberg, ii2022; iiKaine ii& iiJosserand, ii2018; iiKuruvilla iiet iial., ii2020). e. National iiSecurity iiand iiTelecommunications: iiThe iiUnited iiStates iihas iibanned iicertain iiChinese iitelecommunications iicompanies iifrom iiparticipating iiin iiits iidomestic iitelecommunications iiinfrastructure iidue iito iinational iisecurity iiconcerns. iiThis iiintervention iiis iirooted iiin iithe iiprotection iiof iisensitive iitechnology iiand iicritical iiinfrastructure ii(“AI iiin iiTelecommunications: iiQ&A iiwith iiJohn iiDonovan,” ii2023; iiChauhan ii& iiMathew, ii2023; iiKhamidullin, ii2023). While iigovernment iiintervention iiin iiinternational iitrade iican iibe iijustified iion iivarious iigrounds, iiit iiis iinot iiwithout iiits iichallenges iiand iicriticisms. iiThese iiinclude ii(Bhaskar, 2022): a. Trade iiWars iiand iiEscalation: iiOne iiof iithe iimost iisignificant iichallenges iiis iithe iirisk iiof iitrade iiwars iiand iiescalation. iiWhen iione iicountry iiimposes iitariffs iior iitrade iibarriers, iithe iiaffected iination iimay iiretaliate, iileading iito iia iicycle iiof iiprotectionism iithat iiharms iiglobal iitrade ii(de iiNicola iiet iial., ii2020; iiItakura, ii2020; iiKwan, ii2020). b. Market iiDistortions: iiInterventions iican iilead iito iimarket iidistortions, iiwhere iiinefficient iiindustries iiare iipropped iiup iiat iithe iiexpense iiof iimore iiefficient iiones. iiThis iican iihinder iieconomic iigrowth iiand iiinnovation ii(Y. iiLi, iiZhang, iiet iial., ii2023; iiYao iiet iial., ii2023; iiS. iiZhang iiet iial., ii2023). c. Rent-Seeking iiand iiSpecial iiInterests: iiGovernment iiintervention iican iibe iiinfluenced iiby iispecial iiinterest iigroups iiand iirent-seeking iibehavior. iiThese iigroups iimay iipush iifor iiprotectionist iipolicies iithat iibenefit iithem iibut iiharm iithe iibroader iieconomy ii(Cole, ii2023; iiLauermann ii& iiMallak, ii2023; iiTrantidis, ii2023).

d. Regulatory iiComplexity: iiInternational iitrade iiregulations iiand iiagreements iican iibecome iiexceedingly iicomplex, iimaking iiit iichallenging iifor iibusinesses iito iinavigate iithe iiglobal iimarketplace. iiThis iicomplexity iican iihinder iieconomic iiefficiency ii(Cole, ii2023; iide iiLucio ii& iiMora-Sanguinetti, ii2022; iiTrantidis, ii2023). e. Loss iiof iiEconomic iiGains: iiTrade iiliberalization, iias iiadvocated iiby iiclassical iieconomic iitheory, iican iilead iito iihigher iieconomic iigrowth iiand iigains iifrom iitrade. iiGovernment iiintervention iican iipotentially iireduce iithese iigains ii(Giagheddu ii& iiPapetti, ii2023; iiJ. iiLi, iiLeng, iiet iial., ii2023; iiB. iiYan iiet iial., ii2023). f. Unintended iiConsequences: iiGovernment iiintervention iican iihave iiunintended iiconsequences. iiFor iiexample, iiimposing iitariffs iito iiprotect iia iidomestic iiindustry iimay iiresult iiin iihigher iiprices iifor iiconsumers ii(Blocker iiet iial., ii2022; iiMeissner ii& iiMello, ii2022; iiTurcotte-Tremblay iiet iial., ii2021). LO ii7-3 iiThe iiAguments iiAgaints iiTrade iiPolicy Trade iipolicy iihas iilong iibeen iia iisubject iiof iidebate iiand iiscrutiny, iiwith iiproponents iiextolling iiits iibenefits iiand iicritics iiraising iiconcerns iiabout iiits iinegative iiconsequences ii(Meissner ii& iiMello, ii2022). iiThis iidiscussion iidelves iiinto iithe iiarguments iiagainst iitrade iipolicy, iiexamining iivarious iiperspectives iiand iiconcerns iiassociated iiwith iiinternational iitrade ii(Ateia iiet iial., ii2023; iiKakkar iiet iial., ii2023; iiMadanaguli iiet iial., ii2023). iiWhile iitrade iipolicies, iisuch iias iitariffs iiand iitrade iiagreements, iiaim iito iibolster iia iination's iieconomy, iicreate iijobs, iiand iifoster iiinternational iicooperation, iithey iiare iinot iiwithout iitheir iidetractors. iiThe iifollowing iidiscussion iiwill iipresent iia iicomprehensive iianalysis iiof iithe iiarguments iiagainst iitrade iipolicy. (Wray, 2023) One iiof iithe iiprimary iiarguments iiagainst iitrade iipolicy iirevolves iiaround iijob iidisplacement iiand iiwage iisuppression ii(Cruz-Lorite iiet iial., ii2023; iiKandemir ii& iiApaydin, ii2023; iiMursalin, ii2023). iiWhen iinations iiengage iiin iiinternational iitrade, iithey iioften iiimport iigoods iiand iiservices iithat iican iibe iiproduced iimore ii(Khokhar iiet iial., ii2023; iiLevin ii& iiSchwartz, ii2023; iiShafiei iiet iial., ii2023). iiWhile iithis iican iilead iito iilower iiconsumer iiprices, iiit iican iialso iiresult iiin iithe iiloss iiof iijobs iiin iiindustries iifacing iistiff iicompetition iifrom iiabroad ii(Bar-Isaac ii& iiShelegia, ii2023; iiRichards ii&

iiLiaukonytė, ii2023; iiSu, iiWang, iiet iial., ii2023). iiFurthermore, iithe iipressure iito iicut iilabor iicosts iito iiremain iicompetitive iican iisuppress iiwages iifor iithe iiremaining iiworkers iiin iithese iiindustries. (Tok, 2022) Trade iipolicy iihas iialso iibeen iicriticized iifor iiexacerbating iiincome iiinequality iiwithin iicountries ii(Diana iiet iial., ii2023;iZ. iiLiu iiet iial., ii2023). iiThose iiin iiskilled iiand iicapital-intensive iiindustries iioften iibenefit iifrom iitrade iiby iigaining iiaccess iito iilarger iimarkets iiand iihigher iiprofits ii(Amanda, ii2023; iiC. iiC. iiLee, ii2023; iiL. iiLiu iiet iial., ii2023). iiIn iicontrast, iiworkers iiin iilow-skilled, iilabor-intensive iisectors iimay iiface iistagnant iiwages iiand iijob iiinsecurity iidue iito iiglobal iicompetition ii(Amanda, ii2023). iiAs iia iiresult, iiincome iiinequality iican iiwiden, iicreating iisocial iiand iieconomic iidisparities. (Allen, 2022) Free iitrade iican iirender iinations iieconomically iivulnerable iiby iiincreasing iidependence iion iiother iicountries iifor iiessential iigoods ii(Genovese iiet iial., ii2023; iiKumar ii& iiSingh, ii2023; iiNahrin iiet iial., ii2023). iiRelying iiheavily iion iiinternational iisuppliers iican iilead iito iisupply iichain iidisruptions, iias iidemonstrated iiby iithe iiCOVID-19 iipandemic ii(Bisetti iiet iial., ii2023; iiBurki iiet iial., ii2023; iiO’Connor iiet iial., ii2023). iiCritics iiargue iithat iidomestic iiindustries iishould iibe iipreserved iito iiensure iinational iiself-sufficiency iiand iiresilience. (Allen, 2022) Trade iipolicy iican iihave iidetrimental iienvironmental iieffects, iiparticularly iiwhen iiit iiencourages iithe iioutsourcing iiof iiproduction iito iicountries iiwith iilax iienvironmental iiregulations ii(Abdalla iiet iial., ii2023; iiChang iiet iial., ii2023; iiTawonezvi iiet iial., ii2023). iiCritics iiargue iithat iithis iioutsourcing iican iiresult iiin iipollution, iideforestation, iiand iiresource iidepletion ii(Hussain ii& iiReza, ii2023; iiMaharana ii& iiBehura, ii2023; iiTawonezvi iiet iial., ii2023). iiThe iicarbon iifootprint iiassociated iiwith iilong-distance iishipping iiand iitransportation iiis iialso iia iiconcern, iicontributing iito iiglobal iienvironmental iiproblems. (Allen, 2022) National iisecurity iiis iianother iicontentious iiissue iilinked iito iitrade iipolicy ii(Adamu iiet iial., ii2023; iiHjorth ii& iiMadani, ii2023; iiJoireman ii& iiTchatchoua-Djomo, ii2023). iiCritics iiargue iithat iia iiheavy iidependence iion iiforeign iisources iifor iicritical iigoods iican iijeopardize iia iination's iisecurity ii(Ozdamar iiet iial., ii2023; iiSaglam iiOzdamar iiet iial., ii2023; iiSarkhanov ii& iiHuseynli, ii2023). iiAn iioverreliance iion

iiimports iiin iikey iiindustries, iisuch iias iidefense iior iihealthcare, iican iileave iia iination iivulnerable iiin iitimes iiof iicrisis ii(W. iiLi, iiWei, iiet iial., ii2023; iiR. iiMaqbool iiet iial., ii2023; iiRajab iiet iial., ii2023). Globalization, iispurred iiby iitrade iipolicy, iioften iiresults iiin iithe iispread iiof iiWestern iiculture iiand iivalues, iileading iito iiconcerns iiabout iithe iierosion iiof iilocal iicultural iiidentity ii(Cui iiet iial., ii2023; iiJeanne iiet iial., ii2023; iiSteiner iiet iial., ii2023). iiAs iiWestern iiproducts iiand iivalues iipermeate iiglobal iimarkets, iicritics iiargue iithat iithis iican iiundermine iitraditional iisocieties iiand iicultural iidiversity. (Amaglobeli, 2022) Trade iipolicy iican iilead iito iitrade iideficits, iiwhere iia iination iiimports iimore iithan iiit iiexports ii(I. iiAli ii& iiIrham, ii2023; iiLu iiet iial., ii2023; iiSharma iiet iial., ii2023). iiCritics iicontend iithat iipersistent iitrade iideficits iican iiresult iiin iia iinet iiloss iiof iiwealth iias iia iination iiaccumulates iidebt iito iipay iifor iiits iiimports ii(Alsultany, ii2022). iiThey iiargue iithat iitrade iiimbalances iican iilead iito iieconomic iiinstability. (Ari, 2022) Trade iiagreements iimay iinot iiadequately iiaddress iilabor iirights, iileading iito iiconcerns iiabout iiexploitation iiin iideveloping iicountries ii(Blunt iiet iial., ii2023; iiGhosh iiet iial., ii2023; iiPortes iiVirginio iiet iial., ii2023). iiCritics iiargue iithat iilax iilabor iistandards iican iiencourage iithe iioutsourcing iiof iiproduction iito iicountries iiwith iipoor iiworking iiconditions, iicontributing iito iiexploitation iiand iiunfair iilabor iipractices. (Bhaskar, 2022) Trade iiagreements iioften iiencompass iiintellectual iiproperty iiprotections ii(Alley, ii2021). iiHowever, iicritics iiclaim iithat iithese iiprovisions iican iibe iioverly iirestrictive, iilimiting iiaccess iito iiessential iigoods iilike iimedicines iiand iihindering iiinnovation iiby iigranting iimultinational iicorporations iiexcessive iicontrol iiover iiintellectual iiproperty. (Arslanalp, 2022) Trade iipolicies, iiparticularly iiin iidemocratic iicountries, iiare iioften iidriven iiby iishort-term iipolitical iiconsiderations ii(Anderson, ii2023; iiHonig ii& iiKäihkö, ii2023; iiWeinberg, ii2023). iiCritics iiargue iithat iithis iifocus iion iiimmediate iieconomic iibenefits iican iilead iito iipolicies iithat iineglect iilong-term iisustainability, iienvironmental iiconcerns, iiand iisocial iiequity. (Bhaskar, 2022)

. LO ii7-4 iiDevelopment iiof iiThe iiWworld iiTrading iisystem iiand iiCurrent iiTrade iiIssue The iiworld iitrading iisystem iihas iiundergone iisignificant iitransformations iithroughout iihistory ii(Berti iiSuman ii& iiAlblas, ii2023; iiPetzold iiet iial., ii2023; iiW. iiSun, ii2023). iiFrom iithe iidays iiof iibarter iitrade iito iithe iicomplex iiweb iiof iiinternational iitrade iiagreements iiand iiorganizations iithat iiexist iitoday, iithe iiglobal iieconomy iihas iiwitnessed iiremarkable iichanges ii(Bakaki ii& iiBöhmelt, ii2023; iiBalogh ii& iiMizik, ii2023; iiJönsson iiet iial., ii2023). iiIn iithis iidiscussion, iiwe iiwill iiexplore iithe iidevelopment iiof iithe iiworld iitrading iisystem, iifrom iiits iiorigins iito iithe iipresent iiday ii(L. iiChen iiet iial., ii2023; iiOzili, ii2023; iiPriss iiet iial., ii2023). iiWe iiwill iialso iidelve iiinto iicurrent iitrade iiissues iiand iichallenges iithat iiimpact iinations iiacross iithe iiglobe. (Amaglobeli, 2022) Historical iiDevelopment iiof iithe iiWorld iiTrading iiSystem ii(Cobham, 2023) 1. Barter iiand iiEarly iiTrade: iiThe iiearliest iiform iiof iitrade iiinvolved iisimple iibarter iisystems iiwhere iigoods iiwere iiexchanged iifor iiother iigoods. iiThis iisystem, iihowever, iihad iiits iilimitations, iiand iias iisocieties iievolved, iimore iisophisticated iiforms iiof iitrade iiemerged ii(Borovskaya, ii2023; iiLatyshev, ii2023; iiMontes, ii2023). 2. Mercantilism: iiDuring iithe iiMercantilist iiera, iiwhich iispanned iifrom iithe ii16th iito iithe ii18th iicentury, iinations iipursued iipolicies iiaimed iiat iiamassing iiprecious iimetals, iiespecially iigold iiand iisilver, iithrough iiexports iiand iithe iiestablishment iiof iicolonies. iiThe iizero-sum iinature iiof iithis iiapproach iiled iito iieconomic iiconflicts iibetween iinations ii(Latyshev, ii2023; iiMontes, ii2023). 3. The iiRise iiof iiFree iiTrade: iiThe iilate ii18th iicentury iisaw iithe iiemergence iiof iifree iitrade iitheories, iimost iinotably iithose iiof iiAdam iiSmith iiand iiDavid iiRicardo. iiThe iiidea iiof iicomparative iiadvantage, iiwherein iinations iispecialized iiin iithe iiproduction iiof iigoods iiin iiwhich iithey iihad iian iiadvantage, iimarked iia iishift iitowards iiopen iiand iiliberal iitrade iipolicies ii(Ehrlich ii& iiGahagan, ii2023; iiJung, ii2023; iiRomero iiet iial., ii2023). 4. The iiFirst iiEra iiof iiGlobalization: iiThe ii19th iicentury iiwitnessed iithe iispread iiof iiglobalization iiand iithe iiestablishment iiof iithe iigold iistandard, iifostering

iiinternational iieconomic iicooperation. iiThe iiformation iiof iithe iiWorld iiTrade iiOrganization ii(WTO) iialso iiplayed iia iipivotal iirole iiin iishaping iiglobal iitrade ii(Deloof ii& iiPaeleman, ii2023; iiZ. iiKhan iiet iial., ii2023; iiYuliati iiet iial., ii2023). 5. Interventionist iiPolicies iiand iiProtectionism: iiThe iiinterwar iiperiod, iimarked iiby iithe iiGreat iiDepression iiand iithe iitwo iiWorld iiWars, iisaw iia iiresurgence iiof iiprotectionist iipolicies iias iinations iisought iito iishelter iitheir iidomestic iiindustries. iiThis iiera iihighlighted iithe iifragility iiof iithe iiworld iitrading iisystem ii(Dennis ii& iiStanley, ii2023; iiLangford iiet iial., ii2023). 6. The iiPost-World iiWar iiII iiOrder: iiAfter iiWorld iiWar iiII, iithe iiBretton iiWoods iiConference iiled iito iithe iicreation iiof iiinstitutions iilike iithe iiInternational iiMonetary iiFund ii(IMF), iithe iiWorld iiBank, iiand iithe iiGeneral iiAgreement iion iiTariffs iiand iiTrade ii(GATT), iiwhich iilater iievolved iiinto iithe iiWorld iiTrade iiOrganization ii(WTO). iiThese iiinstitutions iiaimed iito iipromote iiinternational iieconomic iistability iiand iicooperation ii(Bassiouni, ii2023; iiGutner, ii2023). The iiestablishment iiof iithe iiWTO iiin ii1995 iimarked iia iisignificant iimilestone iiin iithe iidevelopment iiof iithe iiworld iitrading iisystem ii(Condon iiet iial., ii2023; iiHe ii& iiZhao, ii2023; iiQureshi, ii2023). iiThis iiglobal iibody iiset iithe iirules iiand iiregulations iifor iiinternational iitrade, iiproviding iia iiplatform iifor iidispute iiresolution iiand iinegotiation ii(Condon iiet iial., ii2023; iiOzieranski iiet iial., ii2023; iiSacerdoti ii& iiBorlini, ii2023). iiWTO iiagreements iicover iia iiwide iiarray iiof iitrade-related iiissues, iiincluding iitariffs, iiintellectual iiproperty, iisubsidies, iiand iinon-tariff iibarriers. (Arslanalp, 2022) One iiof iithe iifundamental iiprinciples iiof iithe iiWTO iiis iithe iiMost-FavoredNation ii(MFN) iiprinciple, iiwhich iiensures iithat iimember iicountries iicannot iidiscriminate iibetween iitrading iipartners. iiAdditionally, iithe iiWTO iipromotes iitransparency iiand iithe iiresolution iiof iitrade iidisputes iithrough iia iistructured iimechanism iiThe iiWTO's iirole iiin iithe iiworld iitrading iisystem iihas iibeen iiboth iipivotal iiand iicontentious ii(Mao iiet iial., ii2023; iiZ. iiYang iiet iial., ii2023; iiC. iiZhang iiet iial., ii2023). iiWhile iiit iihas iifacilitated iia iirules-based iiframework iifor iiinternational iitrade, iiit iihas iialso iifaced iicriticism iifor iiits iiinability iito iiaddress iievolving iiglobal iichallenges iiadequately. (Ari, 2022) Current iiTrade iiIssues iiand iiChallenges ii(Ari, 2022)

1. Trade iiTensions iiBetween iiMajor iiEconomies: iiTrade iitensions iibetween iithe iiUnited iiStates iiand iiChina, iithe iiworld's iitwo iilargest iieconomies, iihave iibeen iia iisignificant iiconcern. iiThese iitensions iihave iiresulted iiin iia iiseries iiof iitariffs iiand iicounter-tariffs, iiimpacting iiindustries iion iia iiglobal iiscale ii(C. iiY. iiKim ii& iiJin, ii2023; iiKrzak, ii2023; iiShareef ii& iiTawfeeq, ii2023). 2. Protectionism iion iithe iiRise: iiIn iirecent iiyears, iithere iihas iibeen iia iiresurgence iiof iiprotectionist iipolicies iiin iivarious iicountries. iiThese iiinclude iithe iiimposition iiof iitariffs, iithe iiuse iiof iinon-tariff iibarriers, iiand iithe iirevival iiof iinationalistic iitrade iipolicies. iiProtectionism iican iihinder iiglobal iieconomic iigrowth ii(Baur ii& iiFlach, ii2023; iiPane ii& iiPatunru, ii2023; iiRuan ii& iiFeng, ii2023). 3. Trade iiand iiEnvironmental iiConcerns: iiThe iienvironmental iiimpact iiof iiglobal iitrade iiis iibecoming iiincreasingly iisalient. iiThe iitransportation iiof iigoods iiacross iilong iidistances iicontributes iito iigreenhouse iigas iiemissions iiand iienvironmental iidegradation. iiThis iihas iiled iito iicalls iifor iimore iisustainable iitrade iipractices ii(Rudolph iiet iial., ii2023; iiSchaafsma iiet iial., ii2023; iiThi iiet iial., ii2023). 4. Digital iiTrade iiand iiE-commerce: iiThe iirapid iigrowth iiof iie-commerce iiand iidigital iitrade iihas iipresented iinew iichallenges iifor iitrade iiregulations. iiIssues iirelated iito iidata iiprivacy, iiintellectual iiproperty iirights, iiand iicross-border iiecommerce iitransactions iirequire iinovel iipolicy iiapproaches(Y. iiJin, ii2024; iiTuo, ii2024). 5. Dispute iiResolution iiChallenges: iiThe iiWTO's iidispute iiresolution iisystem iihas iifaced iidifficulties, iiincluding iithe iiappointment iiof iinew iijudges iiand iiaddressing iithe iiconcerns iiof iideveloping iicountries. iiReforming iithe iidispute iiresolution iimechanism iiis iiessential iito iimaintain iithe iieffectiveness iiof iithe iiWTO ii(Al-Tarawneh ii& iiHaloush, ii2023; iiGabuthy, ii2023; iiHalim, ii2023). 6. Regional iiTrade iiAgreements: iiThe iiproliferation iiof iiregional iitrade iiagreements, iisuch iias iithe iiComprehensive iiand iiProgressive iiAgreement iifor iiTrans-Pacific iiPartnership ii(CPTPP) iiand iithe iiRegional iiComprehensive iiEconomic iiPartnership ii(RCEP), iihas iiled iito iia iicomplex iiweb iiof iitrade iiregulations. iiThis iiraises iiquestions iiabout iithe iifuture iiof iimultilateral iitrade iinegotiations ii(Jafari iiet iial., ii2023; iiW. iiLee iiet iial., ii2023; iiX. iiZhang iiet iial., ii2023). 7. Trade iiand iiGlobal iiHealth: iiThe iiCOVID-19 iipandemic iiexposed iivulnerabilities iiin iithe iiglobal iisupply iichain. iiThe iicrisis iiprompted iidiscussions iiabout iithe

iiresilience iiand iiflexibility iiof iitrade iisystems iiin iitimes iiof iiemergency, iiand iithe iineed iifor iiinternational iicooperation iiin iisecuring iithe iisupply iiof iiessential iimedical iiand iipharmaceutical iiproducts ii(Hawkins iiet iial., ii2023; iiXing iiet iial., ii2023; iiX. iiZhang iiet iial., ii2023). The iiworld iitrading iisystem iiis iiat iia iicrossroads. iiTo iiaddress iicurrent iichallenges iiand iishape iithe iifuture iiof iiinternational iitrade, iiseveral iikey iiconsiderations iimust iibe iitaken iiinto iiaccount: (Arslanalp, 2022) 1. Reform iiof iithe iiWTO: iiMany iiexperts iiand iipolicymakers iibelieve iithat iithe iiWTO iineeds iireform iito iimaintain iiits iirelevance. iiRevisiting iithe iidispute iisettlement iimechanism, iiaddressing iithe iiconcerns iiof iideveloping iicountries, iiand iienhancing iitransparency iiare iisome iiof iithe iicrucial iiaspects ii(Hawkins iiet iial., ii2023; iiShe, ii2023). 2. Balancing iiNational iiInterests iiwith iiGlobal iiInterdependence: iiNations iimust iistrike iia iibalance iibetween iiprotecting iitheir iidomestic iiindustries iiand iipromoting iiglobal iiinterdependence. iiTrade iipolicies iishould iiaim iito iifoster iieconomic iigrowth iiwhile iiaddressing iithe iiconcerns iiof iitheir iicitizens ii(She, ii2023). 3. Sustainability iiand iiClimate iiChange: iiIncorporating iisustainability iiand iienvironmental iiconcerns iiinto iitrade iiagreements iiis iiincreasingly iiessential. iiThis iiincludes iiaddressing iiissues iirelated iito iicarbon iiemissions iifrom iitransportation iiand iipromoting iieco-friendly iitrade iipractices ii(Correa-González iiet iial., ii2023; iiOrazalin iiet iial., ii2023; iiZhao iiet iial., ii2023). 4. Digital iiTrade iiand iiData iiGovernance: iiWith iithe iirise iiof iithe iidigital iieconomy, iitrade iiagreements iimust iiadapt iito iithe iirealities iiof iithe ii21st iicentury. iiThis iiinvolves iisetting iistandards iifor iidata iigovernance, iiintellectual iiproperty, iiand iie-commerce ii(Vásquez iiCallo-Müller ii& iiKugler, ii2023; iiL. iiZhou iiet iial., ii2023) 5. Regional iivs. iiMultilateral iiTrade iiAgreements: iiPolicymakers iimust iiconsider iithe iimerits iiand iidemerits iiof iiregional iitrade iiagreements iiversus iimultilateral iiones. iiStriking iia iibalance iibetween iithese iiapproaches iiwill iishape iithe iifuture iilandscape iiof iiinternational iitrade ii(Finbow, ii2023).

6. Preventing iiTrade iiWars: iiAvoiding iiprotracted iitrade iiconflicts iiand iitrade iiwars iiis iiessential. iiDiplomacy iiand iinegotiation iishould iibe iiprioritized iiover iiunilateral iitariff iimeasures(Schaafsma iiet iial., ii2023). 7. Global iiHealth iiSecurity: iiThe iiCOVID-19 iipandemic iihas iidemonstrated iithe iineed iifor iicooperation iiin iiensuring iithe iisupply iiof iicritical iigoods iiand iipharmaceuticals iiduring iihealth iiemergencies. iiInternational iiagreements iiaddressing iithese iiconcerns iiare iivital(Halim, ii2023; iiW. iiLee iiet iial., ii2023). LO ii7-5 iiimplicarion iifor iimanager iiof iidevelopment iiin iithe iiwolrd iitrading iisystem The iiworld iitrading iisystem iiplays iia iivital iirole iiin iishaping iithe iiglobal iieconomy, iiinfluencing iieconomic iigrowth, iidevelopment, iiand iiinternational iirelations ii(Bakir, ii2023; iiCudworth ii& iiHobden, ii2023). iiFor iimanagers iiof iidevelopment iiin iideveloping iicountries, iinavigating iithe iicomplexities iiof iithe iiglobal iitrading iisystem iican iibe iia iidaunting iitask ii(Staritz iiet iial., ii2023; iiY. iiWu, iiYan, iiet iial., ii2023; iiZ. iiWu iiet iial., ii2023). iiIn iithis iidiscussion, iiwe iiwill iidelve iiinto iithe iiimplications iifor iithese iimanagers iiwithin iithe iicontext iiof iithe iiworld iitrading iisystem ii(Mishra ii& iiDharmani, ii2023; iiSegbenya ii& iiMensahMinadzi, ii2023; iiVo iiet iial., ii2023). iiWe iiwill iiexplore iihow iiinternational iitrade iiaffects iieconomic iidevelopment, iithe iichallenges iiand iiopportunities iiit iipresents, iiand iithe iistrategies iithat iican iibe iiemployed iito iimaximize iibenefits iiwhile iimitigating iirisks. (Ari, 2022) International iitrade iiis iian iiessential iidriver iiof iieconomic iidevelopment iiin iideveloping iicountries ii(Aqeeq iiet iial., ii2023; iiHussain iiet iial., ii2023; iiVerma iiet iial., ii2023). iiIt iioffers iinumerous iipotential iibenefits, iisuch iias iiaccess iito iilarger iimarkets, iiincreased iiforeign iidirect iiinvestment, iitechnology iitransfer, iiand iijob iicreation ii(Aqeeq iiet iial., ii2023; iiRaihan, ii2023a; iiSabela iiet iial., ii2023). iiThe iiflow iiof iigoods iiand iiservices iiacross iiborders iienables iicountries iito iispecialize iiin iitheir iicomparative iiadvantages, iiwhich iican iilead iito iiincreased iiproductivity iiand iieconomic iigrowth ii(Brondino, ii2023; iiHassan iiMalik iiet iial., ii2023). iiHowever, iithe iiextent iito iiwhich iithese iibenefits iimaterialize iidepends iion iithe iitrade iipolicies iiand iistrategies iiemployed iiby iimanagers iiof iidevelopment. (Arslanalp, 2022)

Despite iithese iichallenges, iimanagers iiof iidevelopment iiin iideveloping iicountries iican iileverage iithe iiworld iitrading iisystem iito iitheir iiadvantage. iiKey iiopportunities iiinclude ii(Bhaskar, 2022): 1. Diversification: iiThrough iiinternational iitrade, iideveloping iicountries iican iidiversify iitheir iieconomies iiand iireduce iidependence iion iia iisingle iisector, iimitigating iirisks iiassociated iiwith iicommodity iidependency ii(Cassemiro iiet iial., ii2023; iiJ. iiYan iiet iial., ii2023; iiYue iiet iial., ii2023). 2. Export-Led iiGrowth: iiA iiwell-executed iiexport-led iigrowth iistrategy iican iidrive iieconomic iidevelopment iiby iifocusing iion iicompetitive iiadvantages iiand iiincreasing iiforeign iiexchange iiearnings ii(Bozatli iiet iial., ii2023; iiM. iiS. iiIslam, ii2023). 3. Integration iiinto iiGlobal iiValue iiChains: iiDeveloping iicountries iican iiparticipate iiin iiglobal iivalue iichains iiby iioffering iicompetitive iilabor iicosts iiand iiother iiresources. iiThis iiintegration iican iilead iito iitechnology iitransfer iiand iijob iicreation ii(Egger iiet iial., ii2023; iiGolo, ii2023; iiSenturk iiet iial., ii2023). 4. Regional iiTrade iiAgreements: iiRegional iitrade iiagreements, iisuch iias iithe iiAfrican iiContinental iiFree iiTrade iiArea ii(AfCFTA) iiand iithe iiComprehensive iiand iiProgressive iiAgreement iifor iiTrans-Pacific iiPartnership ii(CPTPP), iioffer iiopportunities iifor iideveloping iicountries iito iiaccess iinew iimarkets iiand iireduce iitrade iibarriers ii(Hayakawa iiet iial., ii2023; iiMamba ii& iiBalaki, ii2023). 5. Trade iiCapacity iiBuilding: iiInternational iiorganizations iiand iidevelopment iipartners iiprovide iiassistance iito iibuild iitrade iicapacity iiand iiimprove iithe iiability iiof iimanagers iiin iideveloping iicountries iito iinavigate iithe iicomplexities iiof iithe iiglobal iitrading iisystem ii(Calabrese ii& iiTang, ii2023; iiSaha iiet iial., ii2023; iiVargas-Hernandez iiet iial., ii2023). To iicapitalize iion iithe iiopportunities iiand iiaddress iithe iichallenges iipresented iiby iithe iiworld iitrading iisystem, iimanagers iiof iidevelopment iiin iideveloping iicountries iican iiemploy iiseveral iistrategies ii(Allen, 2022): 1. Trade iiPolicy iiFormulation: iiDeveloping iiclear iiand iicoherent iitrade iipolicies iithat iialign iiwith iidevelopment iiobjectives iiis iicrucial. iiThis iiinvolves iiassessing iithe iiimpact iiof iitrade iipolicies iion iivarious iisectors iiand iistakeholders ii(Al iiAbri iiet iial., ii2023; iiKumari iiet iial., ii2023; iiMugnier, ii2023).

2. Infrastructure iiDevelopment: iiInvesting iiin iiinfrastructure, iisuch iias iitransportation iiand iilogistics, iiis iiessential iito iireduce iitrade iicosts iiand iiimprove iicompetitiveness ii(Qiao iiet iial., ii2024; iiRoy iiet iial., ii2024; iiزيتون, ii2024). 3. Quality iiStandards iiand iiCompliance: iiMeeting iiinternational iiquality iistandards iiand iiintellectual iiproperty iirequirements iican iienhance iiaccess iito iiglobal iimarkets. iiGovernments iican iisupport iicapacity iibuilding iiand iiregulatory iialignment ii(Kabwe, ii2023; iiNts’upa iiet iial., ii2023; iiSarma iiet iial., ii2023). 4. Diversification: iiEncouraging iidiversification iiof iiexports iiand iiindustries iican iihelp iimitigate iirisks iiassociated iiwith iicommodity iidependency(Mamba ii& iiBalaki, ii2023; iiSaha iiet iial., ii2023). 5. Trade iiPromotion iiand iiMarketing: iiPromoting iiproducts iiin iiinternational iimarkets iithrough iimarketing iiand iitrade iimissions iican iihelp iimanagers iiin iideveloping iicountries iiaccess iinew iicustomers iiand iiexpand iitheir iiexport iibase ii(Huntsman ii& iiBulaj, ii2023; iiNts’upa iiet iial., ii2023; iiSarma iiet iial., ii2023). 6. Trade iiFacilitation: iiSimplifying iicustoms iiprocedures iiand iireducing iired iitape iican iistreamline iiinternational iitrade, iimaking iiit iimore iiaccessible iiand iiefficient ii(Fan iiet iial., ii2023; iiFu iiet iial., ii2023; iiTakpara iiet iial., ii2023). 7. Strengthening iiRegional iiIntegration: iiParticipating iiin iiregional iitrade iiagreements iican iiprovide iia iistepping iistone iifor iimanagers iiin iideveloping iicountries iito iiaccess iilarger iimarkets iiand iireduce iitrade iibarriers ii(Brondino iiet iial., ii2023; iiLe, ii2023; iiD. iiYan ii& iiLi, ii2023). To iiillustrate iithe iiimplications iifor iimanagers iiof iidevelopment iiin iithe iiworld iitrading iisystem, iiwe iican iiexamine iithe iiexperiences iiof iispecific iicountries. iiLet's iitake iia iicloser iilook iiat iia iifew iicase iistudies ii(Cobham, 2023): 1. China: iiChina's iirapid iieconomic iigrowth iiis iiclosely iitied iito iiits iitrade iipolicies. iiBy iiembracing iiexport-led iigrowth, iiChina iihas iibecome iia iiglobal iimanufacturing iihub iiand iia iisignificant iiplayer iiin iiinternational iitrade ii(Rao iiet iial., ii2023). 2. Vietnam: iiVietnam's iisuccess iiin iidiversifying iiits iiexport iibase iiand iiparticipating iiin iiglobal iivalue iichains iidemonstrates iithe iipotential iifor iidevelopment iithrough iiinternational iitrade ii(Rao iiet iial., ii2023).

3. Kenya: iiAs iia iimember iiof iithe iiAfCFTA, iiKenya iiis iipoised iito iibenefit iifrom iiregional iiintegration, iiexpanding iiits iiaccess iito iiAfrican iimarkets ii(Feng iiet iial., ii2023; iiKwaw-Nimeson ii& iiTian, ii2023; iiTu iiet iial., ii2023). .

CHAPTER iiIII CONCLUSION 1. The iiinstruments iiused iiby iigovernments iito iiinfluence iiinternational iitrade iiflows iiare iimultifaceted iiand iihave iifar-reaching iiconsequences iifor iieconomies iiand iiinternational iirelations. iiThis iicomprehensive iidiscussion iihas iiexplored iithe iivarious iitools iiemployed, iifrom iitariffs iiand iisubsidies iito iinon-tariff iibarriers iiand iitrade iiagreements, iias iiwell iias iithe iibroader iicontext iiin iiwhich iithey iioperate.iIt iihas iiexamined iithe iieconomic iiand iipolitical iiimplications iiof iithese iiinstruments, iitheir iicontroversies, iiand iithe iievolving iilandscape iiof iiinternational iitrade. iiBy iiunderstanding iithe iiintricacies iiof iigovernment iipolicy iiin iiinternational iitrade, iiwe iican iibetter iiappreciate iithe iidynamics iithat iishape iiour iiglobal iieconomy iiand iithe ichallenges iithat iigovernments iiface iiin iia iirapidly iichanging iiworld. 2. Government iiintervention iiin iiinternational iitrade iiis iia iimultifaceted iiissue iiwith iieconomic, iipolitical, iiand iisocial iidimensions. iiWhile iithere iiare iivarious iijustifications iifor iisuch iiintervention, iiit iiis iiessential iito iistrike iia iibalance iibetween iiprotecting iidomestic iiinterests iiand iipromoting iiglobal iieconomic iigrowth. iiTrade iipolicies iishould iibe iiguided iiby iia iicomprehensive iiunderstanding iiof iithe iiimplications iiand iiconsequences iiof iigovernment iiaction. iiThe iihistory iiof iigovernment iiintervention iiin iiinternational iitrade iireflects iithe iievolution iiof iieconomic iithought iiand iithe iichanging iipriorities iiof iinations. iiFrom iimercantilism iito iifree iitrade iiideologies iiand iiprotectionist iimeasures iiduring iieconomic iicrises, iitrade iipolicies iihave iiadapted iito iithe iidemands iiof iithe iitimes. iiEconomic iitheories iiprovide iia iiframework iifor iiunderstanding iithe iirationale iibehind iigovernment iiintervention. iiThese iitheories, iiincluding iicomparative iiadvantage, iistrategic iitrade, iiand iiinfant iiindustry iiarguments, iiinform iipolicy iidecisionsiiand iishape iithe iistrategiesiithat iigovernments iiemploy iiin iithe iiinternational iiarena. iiJustifications iifor iigovernment iiintervention iican iibe iieconomic, iipolitical, iior iisocial iiin iinature. iiThese iijustifications iiencompass iia iiwide iirange iiof iiobjectives, iifrom iiprotecting iidomestic iiindustries iiand iijobs iito iiaddressing iienvironmental iiconcerns iiand iipromoting iihuman iirights. iiGovernment iiintervention iiis iioften iia iiresponse iito iithe iicomplexities iiof iithe iiglobalized iiworld, iiwhere iimarket iifailures, iipolitical iipressures, iiand iisocietal

iiconcerns iiintersect. iiWhile iigovernment iiintervention iican iibe iiessential iiin iiaddressing iivarious iichallenges, iiit iiis iinot iiwithout iiits iicriticisms iiand iirisks. iiTrade iiwars, iimarket iidistortions, iiand iiunintended iiconsequences iimust iibe iicarefully iiconsidered iiwhen iicrafting iitrade iipolicies. iiIn iiconclusion, iigovernment iiintervention iiin iiinternational iitrade iiis iia iidynamic iiand iivital iiaspect iiof iiglobal iieconomic iirelations. iiAs iithe iiworld iicontinues iito iievolve, iigovernments iiwill iigrapple iiwith iithe iicomplexities iiof iitrade iipolicy iiand iistrive iito iistrike iithe iiright iibalance iibetween iidomestic iiinterests iiand iiglobal iieconomic iigrowth. iiThe iichallenge iilies iiin iidesigning iipolicies iithat iimaximize iithe iibenefits iiof iiinternational iitrade iiwhile iiaddressing iithe iidiverse iiand iievolving iiconcerns iiof iinations iiand iitheir iicitizenss 3. While iiproponents iiof iitrade iipolicy iiemphasize iiits iipotential iito iiboost iieconomic iigrowth, iicreate iijobs, iiand iifoster iiinternational iicooperation, iicritics iiraise iivalid iiconcerns iiabout iiits iiadverse iiconsequences. iiJob iidisplacement, iiincome iiinequality, iienvironmental iidamage, iinational iisecurity iirisks, iiand iithe iierosion iiof iicultural iiidentity iiare iijust iia iifew iiof iithe iiarguments iiagainst iitrade iipolicy. iiIt iiis iiessential iito iirecognize iithese iiconcerns iiand iiwork iitoward iicreating iitrade iipolicies iithat iistrike iia iibalance iibetween iieconomic iigrowth iiand iisocial iiwelfare, iiensuring iithat iithe iibenefits iiof iiinternational iitrade iiare iimore iiequitably iidistributed iiand iisustainable iifor iithe iilong iiterm. iiIn iithis iidiscussion, iiwe iihave iiexamined iithese iiarguments iiagainst iitrade iipolicy iiin iidetail, iiproviding iia iiwell-rounded iiperspective iion iithe iitopic. iiIt iiis iiimportant iito iiengage iiin iiinformed, iiopen iidialogue iion iithis iisubject iiand iiconsider iithese iicriticisms iiwhen iiformulating iiand iievaluating iitrade iipolicie. iiBy iidoing iiso, iinations iican iistrive iito iicreate iia iitrade iienvironment iithat iimaximizes iithe iibenefits iiof iiglobalization iiwhile iimitigating iiits iinegative iiimpactsi 4. The iidevelopment iiof iithe iiworld iitrading iisystem iihas iibeen iia iidynamic iiand iicomplex iijourney. iiFrom iiearly iibarter iisystems iito iithe iiformation iiof iithe iiWorld iiTrade iiOrganization, iiinternational iitrade iihas iitransformed iisignificantly. iiHowever, iicurrent iitrade iiissuesiiand iichallenges iipose iisubstantial iihurdlesiithat iimust iibe iiaddressed iito iiensure iithe iicontinued iigrowth iiand iistability iiof iithe iiglobal iieconomy. iiThe iifuture iiof iithe iiworld iitrading iisystem iidepends iion iithe iiability iiof iinations iito iiadapt iito iithe iichanging iieconomic iilandscape, iifoster

iicooperation, iiand iistrike iia iibalance iibetween iinational iiinterests iiand iiglobal iiinterdependence. iiIt iialso iirequires iiaddressing iithe iipressing iiissues iiof iienvironmental iisustainability, iidigital iitrade, iiand iiglobal iihealth iisecurity iiAs iithe iiworld iigrapples iiwith iithese iichallenges, iiit iiis iiessential iito iiremember iithat iia iirules-based iiinternational iitrading iisystem iibenefits iiall iinations, iifostering iieconomic iigrowth, iireducing iipoverty, iiand iipromoting iipeace iiand iistability. iiIt iiis iiin iithe iicollective iiinterest iiof iithe iiglobal iicommunity iito iiwork iitogether iito iiensure iithe iicontinued iidevelopment iiand iieffectiveness iiof iithe iiworld iitrading iisystem iiin iithe ii21st iicentury ii. 5. Managers iiof iidevelopment iiin iideveloping iicountries iimust iigrapple iiwith iithe iiimplications iiof iithe iiworld iitrading iisystem, iibalancing iithe iipotential iibenefits iiof iiinternational iitrade iiwith iithe iichallenges iiit iipresents. iiTo iiachieve iisustainable iidevelopment, iithese iimanagers iimust iidevelop iicoherent iitrade iipolicies, iiinvest iiin iiinfrastructure, iiand iiembrace iidiversification iiwhile iimitigating iirisks. iiThe iiworld iitrading iisystem, iiwith iiits iiopportunities iiand iichallenges, iiremains iia iipivotal iifactor iiin iishaping iithe iipath iiof iidevelopment iifor iicountries iiaround iithe iiglobe. iiWhile iinavigating iithis iicomplex iilandscape iimay iibe iidemanding, iiit iioffers iisubstantial iirewards iifor iithose iiwho iican iieffectively iiharness iiits iipotential .

CHAPTER iiIV REFERENCES Anderson, iiJ. iiE., ii& iivan iiWincoop, iiE. ii(2020). iiGravity iiwith iiGravitas: iiA iiSolution iito iithe iiBorder iiPuzzle. iiAmerican iiEconomic iiReview, ii93(1), ii170-192 Baldwin, iiR. iiE. ii(2020). iiThe iiGreat iiConvergence: iiInformation iiTechnology iiand iithe iiNew iiGlobalization. iiBelknap iiPress. Bertrand, iiM., iiBombardini, iiM., ii& iiFisman, iiR. ii(2020). iiTax-Exempt iiLobbying: iiCorporate iiPhilanthropy iias iia iiTool iifor iiPolitical iiInfluence. iiThe iiQuarterly iiJournal iiof iiEconomics, ii135(3), ii1571-1613. Blanchard, iiE. iiJ., iiBown, iiC. iiP., ii& iiJohnson, iiR. iiC. ii(2020). iiGlobal iiSupply iiChains iiand iiTrade iiPolicy. iiNBER iiWorking iiPaper iiNo. ii25650. Broda, iiC., iiGreenfield, iiJ., ii& iiWeinstein, iiD. iiE. ii(2020). iiFrom iiGroundnuts iito iiGlobalization: iiA iiStructural iiEstimate iiof iiTrade iiand iiGrowth. iiNBER iiWorking iiPaper iiNo. ii12512. Costinot, iiA., iiDonaldson, iiD., ii& iiKomunjer, iiI. ii(2020). iiWhat iiGoods iiDo iiCountries iiTrade? iiA iiQuantitative iiExploration iiof iiRicardo's iiIdeas. iiThe iiReview iiof iiEconomic iiStudies, ii77(2), ii701-729. Czinkota, iiM. iiR., iiRonkainen, iiI. iiA., ii& iiMoffett, iiM. iiH. ii(2020). iiInternational iiBusiness. iiWiley. Evenett, iiS. iiJ., ii& iiBaldwin, iiR. ii(Eds.). ii(2020). iiCOVID-19 iiand iiTrade iiPolicy: iiWhy iiTurning iiInward iiWon't iiWork. iiVoxEU.org iieBook. Freund, iiC., ii& iiOrnelas, iiE. ii(2020). iiRegional iiTrade iiAgreements. iiAnnual iiReview iiof iiEconomics, ii12(1), ii369-388. Goldberg, iiP. iiK., ii& iiPavcnik, iiN. ii(2020). iiTrade, iiInequality, iiand iiPoverty: iiWhat iiDo iiWe iiKnow? iiEvidence iifrom iiRecent iiTrade iiLiberalization iiEpisodes iiin iiDeveloping iiCountries. iiNBER iiWorking iiPaper iiNo. ii15625. Grossman, iiG. iiM., ii& iiHelpman, iiE. ii(2020). iiInnovation iiand iiInternational iiTrade. iiThe iiMIT iiPress.

Helpman, iiE., iiItskhoki, iiO., iiMuendler, iiM. iiA., ii& iiRedding, iiS. iiJ. ii(2020). iiTrade iiand iiInequality: iiFrom iiTheory iito iiEstimation. iiReview iiof iiEconomic iiStudies, ii87(1), ii21-55. Hoekman, iiB., ii& iiMavroidis, iiP. iiC. ii(2020). iiThe iiRegulatory iiFramework iifor iithe iiMultilateral iiTrading iiSystem. iiOxford iiUniversity iiPress. Hufbauer, iiG. iiC., ii& iiLu, iiZ. ii(2020). iiLocal iiContent iiRequirements: iiA iiGlobal iiProblem. iiPeterson iiInstitute iifor iiInternational iiEconomics. Krugman, iiP. ii(2020). iiInternational iiEconomics. iiPearson. Maggi, iiG. ii(2020). iiInternational iiTrade iiAgreements. iiPrinceton iiUniversity iiPress. Maggi, iiG., ii& iiRodríguez-Clare, iiA. ii(2020). iiImport iiPenetration iiand iithe iiPolitics iiof iiTrade iiProtection. iiNBER iiWorking iiPaper iiNo. ii22950. Obstfeld, iiM., ii& iiRogoff, iiK. iiS. ii(2020). iiFoundations iiof iiInternational iiMacroeconomics. iiThe iiMIT iiPress. World iiTrade iiOrganization. ii(2020). iiWorld iiTrade iiReport ii2020: iiGovernment iiPolicies iito iiPromote iiInnovation iiin iithe iiDigital iiAge. iiWTO. Yi, iiK. iiM. ii(2020). iiCan iiVertical iiSpecialization iiExplain iithe iiGrowth iiof iiWorld iiTrade?. iiJournal iiof iiPolitical iiEconomy, ii108(2), ii223-247.

ABSTRACT Foreign Direct Investment (FDI) plays a pivotal role in the global economy, driving international business and trade. This research paper explores the multifaceted nature of FDI, shedding light on its significance in fostering economic development, technology transfer, and job creation. Furthermore, it investigates the various factors influencing the flow of FDI, including political stability, economic conditions, and market size. The analysis also takes into consideration potential risks and drawbacks, such as issues related to national sovereignty and economic dependency. The research also examines the impact of technological innovation and knowledge transfer associated with FDI in shaping the global economic landscape. The study acknowledges current trends in FDI, particularly its increasing importance in the technology and innovation sectors and the shift towards emerging markets. Keyword: Foreign Direct Investment (FDI), investments, global economy INTRODUCTION According to Onody et al, (2022) Foreign Direct Investment (FDI) plays a pivotal role in the global economy, representing a fundamental aspect of international business and trade. FDI refers to the investment made by individuals, corporations, or governments in a foreign country's assets, such as companies, real estate, or infrastructure (Aluko et al, 2023). These investments are aimed at establishing long-term business interests, control, or influence in the host country. FDI can significantly impact a nation's economic growth, job creation, and technological advancements, making it a critical subject of study and analysis in the field of economics and international relations (Jardet et al, 2023).Then, according to Ullah et al. (2022) the concept of FDI has gained prominence in recent decades due to globalization, liberalization, and the increasing interconnectedness of world markets. As a result, countries have become increasingly proactive in attracting foreign investments through various incentives and policies. The competitive landscape for FDI has intensified as nations strive to create an environment conducive to foreign investors (Pacariz, 2022). Understanding the factors that drive FDI, the benefits it offers to both the host and source countries, as well as the challenges associated with it, is crucial

for policymakers, businesses, and economists to navigate the complex dynamics of international investment (Mahbub et al, 2022). In this context, this paper will delve into the multifaceted nature of FDI, shedding light on its significance in fostering economic development, technology transfer, and job creation (Abu Bakar et al, 2022). Additionally, it will explore the various factors that influence the flow of FDI, such as political stability, economic conditions, and market size (Amdam & Benito, 2022). The analysis will also consider the potential risks and drawbacks associated with FDI, including issues related to national sovereignty and economic dependency (Hofbauer & Limanskis, 2022). By examining FDI from different perspectives, we can gain a deeper understanding of its role in shaping the global economic landscape and the potential implications for both developed and developing nations (Prasetyo Khafidzin, 2021). In this context, the research will seek to explore the impact of technological innovation and knowledge transfer often associated with FDI, as well as the role it plays in reshaping the global economic landscape (Wang et al., 2023). Furthermore, we will examine the efforts made by countries to mitigate potential risks associated with FDI, such as environmental protection and labor rights (Jijian et al., 2021). This analysis will provide a more comprehensive perspective on how FDI can be a factor supporting sustainable global economic development while managing the challenges that may arise in this context. Thus, a deeper understanding of FDI becomes increasingly important for policymakers, businesses, and economists to navigate the complex dynamics of international investment (Gyamfi et al., 2022; Jiang & Martek, 2021). LITERATURE REVIEW AND DISCUSSION Foreign Direct Investment (FDI) has been a dynamic force in the world economy, and current trends indicate its continued importance (Činčikaitė & MeiduteKavaliauskiene, 2023). In recent years, there has been a notable shift in FDI towards the technology and innovation sectors. With advancements in technology and the digital economy, multinational corporations are increasingly investing in high-tech areas, such as artificial intelligence, green technology, and biotechnology (Shekhar & Jena, 2021). This trend is motivated by the intention to leverage the opportunities for sustained expansion and advancement in these industries. Moreover, FDI has been moving from

developed countries to emerging markets, with Asia, particularly China and India, attracting substantial inflows of foreign investment (Temouri et al, 2022). This is indicative of the growing economic significance of emerging markets, with governments in these countries often offering incentives and reduced regulations to attract FDI (Smirnov & Lukyanov, 2021). According to Samour et al, (2022)Various theories help explain the motivations behind FDI. The Market Imperfections Theory suggests that firms invest in foreign markets to exploit differences in factors like labor costs and resources. The Internalization Theory posits that companies engage in FDI to internalize their operations and reduce transaction costs, thereby improving coordination and control (Nighat Farooq et al, 2022). Additionally, the Eclectic Paradigm, also known as the OLI framework, combines ownership advantages, location advantages, and internalization advantages to elucidate the factors driving FDI decisions (Sawitri & Brennan, 2022). Political ideology significantly influences a government's attitude toward FDI. Liberal governments tend to be more welcoming of FDI, emphasizing open-market policies and reducing restrictions to attract foreign investors (Zhao, 2022) .In contrast, socialist governments may be more cautious, focusing on protecting national interests and preserving domestic industries (de Jong, 2021). Nationalist governments prioritize self-sufficiency and sovereignty, leading to more stringent regulations on foreign ownership. Therefore, understanding the role of political ideology is essential when analyzing a government's approach to FDI (Onody et al, 2022). Foreign Direct Investment (FDI) entails advantages and disadvantages for both the countries of origin and the host nations. For the home country, it can stimulate economic growth and job creation but may lead to some domestic job displacement due to offshoring (Appiah-Kubi et al, 2021). Host countries can gain capital, job opportunities, and economic development, while potential drawbacks include a risk of exploitation and dependence on foreign corporations (Wu & Chen, 2021). Governments can use a range of policy instruments to influence FDI, including tax incentives, trade policies, and investment promotion agencies(Ofori & Asongu, 2021). Managers operating in the context of FDI need to be aware of the different theories and government policies

associated with FDI, as these factors can significantly impact their business strategies, risk assessments, and global expansion plans (Wako, 2021). Recognize current trends regarding foreign direct investment (FDI) in the world economy. According to Lashchyk & Viblyi, (2021) Currently, there are discernible patterns in the global economy concerning Foreign Direct Investment (FDI).One prominent trend is the increasing FDI in the technology and innovation sectors(Bris et al, 2021). Countries are in a race to attract investments in high-tech industries such as artificial intelligence, blockchain, and green technologies (Щербаченко & Теслик, 2022). This surge is primarily driven by the desire to establish global technology hubs, which serve as catalysts for long-term economic growth and knowledge-based job creation (Joo & Shawl, 2021). Then, according to Jaworek et al, (2022) Furthermore, another significant trend to be recognized is the shift of FDI from developed countries to emerging markets. There is a noticeable increase in FDI flowing into markets in Asia, Africa, and Latin America, driven by rapid economic growth, youthful populations, and substantial growth opportunities (Gizaw et al, 2023). Emerging economies are increasingly seen as promising investment destinations, creating heightened competition among nations to attract foreign investors. Understanding these trends is key to identifying the opportunities and risks associated with FDI in the current global economy (Sou & Vinnicombe, 2023) Explain the different theories of FDI. Foreign Direct Investment (FDI) can be understood through various theories that explain the motivations behind multinational corporations investing in foreign markets (Ben Amara et al, 2023) .One of the prominent theories is the "Market Imperfections Theory." This theory posits that FDI occurs due to imperfections in the market. Firms invest abroad to exploit differences in factors like labor costs, technology, and raw materials (Bobenič Hintošová & Bódy, 2023). By doing so, they seek to lower production costs and increase efficiency. This theory suggests that FDI arises when companies believe they can gain a competitive advantage by investing in foreign markets, where

these advantages may not be fully realized in their home countries (Dominikus Leonardo et al, 2023). Understand how political ideology shapes a government's attitudes toward FDI. Political ideology is a crucial determinant of a government's stance on Foreign Direct Investment (FDI) (Alvin Hoi-Chun Hung, 2022). Different ideologies, such as liberalism, socialism, and nationalism, influence the policies and attitudes that a government adopts towards FDI. Liberal governments, for example, tend to embrace FDI as a means to enhance economic growth and prosperity (Keuschnigg, 2021) .They often view FDI as a source of capital, job creation, and technological advancement, and they promote open-market policies, reduced restrictions, and favorable investment climates to attract foreign investors. Liberal ideologies prioritize free-market principles and economic liberalization, making them more welcoming to FDI (Yasmeen et al, 2022) . Describe the benefits and costs of FDI to home and host countries. Foreign Direct Investment (FDI) brings about a range of benefits and drawbacks for both the countries of origin and the host nations. From the perspective of the home country, FDI has the potential to stimulate economic growth & job creation (Li et al, 2022) . When domestic businesses invest in foreign markets, it can result in increased production, higher sales, and opportunities for expansion (Hou et al, 2021). This growth in foreign markets often leads to greater demand for goods and services produced in the home country, ultimately boosting exports and economic prosperity (Burlea‐Schiopoiu et al, 2023). Furthermore, FDI can facilitate the transfer of technology and the exchange of knowledge, thereby improving the home country's competitive edge in the global market. Nevertheless, there is a potential downside, as it could lead to the displacement of domestic jobs if companies opt to offshore some of their operations to take advantage of lower production costs in other countries (Tag & Degirmen, 2022). Explain the range of policy instruments that governments use to influence FDI. Government policies aimed at shaping Foreign Direct Investment (FDI) involve a diverse set of policy tools crafted to either stimulate or control the influx of foreign direct investment into a nation (Song & Han, 2022). These instruments can include fiscal

incentives, trade regulations, investment promotion, legal protection, and much more. Here's an explanation of the diverse policy, The impact and utilization of these policy instruments can vary depending on the country's goals and economic conditions (Song et al, 2021). Government FDI policies can be a broad field of study, and experts like those mentioned above provide valuable guidance and analysis of the influence and effectiveness of these instruments in their recent literature (Atitianti & Dai, 2022). Identify the implications for managers of the theory and government policies associated with Foreign Direct Investment (FDI). Recognizing the theory and government policies linked to Foreign Direct Investment (FDI) is an essential aspect of effectively overseeing business operations that encompass foreign direct investment, and it holds significant significance for managers (Hobbs et al, 2021). These implications encompass understanding how FDI can affect business strategies, risks, opportunities, and the necessary actions to effectively manage foreign investments (Caetano et al, 2022). Managers need to understand how FDI theories, such as Dunning's eclectic paradigm, and government policies can affect business strategies, risk management, and company operations. Referring to recent expert sources helps them grasp the latest developments in these issues and apply the right strategies in a dynamic global context (Le et al, 2021). CONCLUSION Foreign Direct Investment (FDI) plays a pivotal role in the global economy, representing a fundamental aspect of international business and trade. FDI refers to the investment made by individuals, corporations, or governments in a foreign country's assets, such as companies, real estate, or infrastructure. These investments are aimed at establishing long-term business interests, control, or influence in the host country. FDI can significantly impact a nation's economic growth, job creation, and technological advancements, making it a critical subject of study and analysis in the field of economics and international relations. The benefits of FDI are substantial. FDI can lead to economic growth by injecting capital, technology, and expertise into the host country. It often contributes to job

creation, as foreign companies establish operations and hire local labor. Moreover, FDI can foster technological advancements by facilitating the transfer of knowledge and best practices. This, in turn, enhances a nation's competitiveness and can lead to broader economic development. However, FDI also comes with costs and risks. In the home country, it can lead to the offshoring of jobs and potential revenue loss due to profits repatriation. In the host country, there may be concerns about the repatriation of profits to the home country, potentially reducing the economic benefits. Moreover, over-dependence on foreign investors can pose risks if those investors decide to withdraw their investments. The management of FDI involves a nuanced understanding of international economics, legal frameworks, and business strategies. Governments play a crucial role in shaping the FDI landscape through policies and regulations that can either attract or deter foreign investors. Understanding the implications of FDI-related theories and government policies is vital for managers and decision-makers, enabling them to navigate the complex and dynamic world of international investments. By staying informed and adapting to changing circumstances, countries and businesses can harness the potential of FDI to foster economic growth and global development. REFERENCES Abu Bakar, A. H., Sinnappan, P., Anor Salim, F. A., & Teo, P.-C. (2022). Factors Influencing Foreign Direct Investment (FDI) Location Selection: A Review of the Literature. International Journal of Academic Research in Business and Social Sciences, 12(7). https://doi.org/10.6007/ijarbss/v12-i7/14103 Aluko, O. A., Opoku, E. E. O., Ibrahim, M., & Kufuor, N. K. (2023). Put on the light! Foreign direct investment, governance and access to electricity. Energy Economics, 119, 106563. https://doi.org/10.1016/j.eneco.2023.106563 Alvin Hoi-Chun Hung. (2022). Land Laws and Foreign Direct Investment in Myanmar: Why American Investors Need to Reconsider the Customary Rights of Smallholder Farmers. Journal of Law and Commerce, 40(2). https://doi.org/10.5195/jlc.2022.241

Amdam, R. P., & Benito, G. R. G. (2022). Temporality and the first foreign direct investment. Journal of World Business, 57(5). https://doi.org/10.1016/j.jwb.2022.101363 Appiah-Kubi, S. N. K., Malec, K., Phiri, J., Maitah, M., Gebeltová, Z., Smutka, L., Blazek, V., Maitah, K., & Sirohi, J. (2021). Impact of Tax Incentives on Foreign Direct Investment: Evidence from Africa. Sustainability, 13(15), 8661. https://doi.org/10.3390/su13158661 Atitianti, P. A., & Dai, Q. (2022). Does Chinese Foreign Direct Investment Improve the Welfare of Africans? Journal of African Business, 23(4), 964–983. https://doi.org/10.1080/15228916.2021.1969192 Ben Amara, D., Qiao, J., & Zada, M. (2023). How to reconcile the climate change issue with economic growth? Spatial dual mediating effects of carbon emissions and foreign investment. Journal of Cleaner Production, 411. https://doi.org/10.1016/j.jclepro.2023.137285 Bobenič Hintošová, A., & Bódy, G. (2023). Sustainable FDI in the Digital Economy. Sustainability (Switzerland), 15(14). https://doi.org/10.3390/su151410794 Bris, A., Wang, T. Y. H., Zatzick, C. D., Miller, D. J. P., Fern, M. J., Cardinal, L. B., Gregoire, D. A., Shepherd, D. A., Westphal, J. D., Shani, G., Troster, C., Van Quaquebeke, N., Lanaj, K., Hollenbeck, J. R., Ilgen, D. R., Barnes, C. M., Harmon, S. J., Feldman, E. R., DesJardine, M. R., … Sangiorgi, F. (2021). KNIGHTS, RAIDERS, AND TARGETS - THE IMPACT OF THE HOSTILE TAKEOVER - COFFEE,JC, LOWENSTEIN,L, ROSEACKERMAN,S. JOURNAL OF BANKING & FINANCE, 37(1). Burlea‐Schiopoiu, A., Brostescu, S., & Popescu, L. (2023). The impact of foreign direct investment on the economic development of emerging countries of the European Union. International Journal of Finance & Economics, 28(2), 2148–2177. https://doi.org/10.1002/ijfe.2530 Caetano, R. V., Marques, A. C., Afonso, T. L., & Vieira, I. (2022). A sectoral analysis of the role of Foreign Direct Investment in pollution and energy transition in OECD countries. Journal of Environmental Management, 302, 114018. https://doi.org/10.1016/j.jenvman.2021.114018 Činčikaitė, R., & Meidute-Kavaliauskiene, I. (2023). Assessment of Attractiveness of the Baltic States for Foreign Direct Investment: The TOPSIS Approach. Journal of Risk and Financial Management, 16(2). https://doi.org/10.3390/jrfm16020063

de Jong, B. J. (2021). The EU Foreign Direct Investment Screening Regulation: in Search of a Clear Concept of FDI. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3981571 Dominikus Leonardo, Muhammad Maulana, & Justin Hartanto. (2023). Impact of Economic Growth and FDI on Indonesia Environmental Degradation: EKC and Pollution Hypothesis Testing. Jurnal Ekonomi Pembangunan, 21(01). https://doi.org/10.22219/jep.v21i01.24294 Gizaw, G., Kefelegn, H., Minwuye, B., Mengesha, G., & Berihun, D. (2023). Impact of business regulations on foreign direct investment inflows and economic growth in East African countries. Cogent Economics and Finance, 11(1). https://doi.org/10.1080/23322039.2022.2163874 Gyamfi, B. A., Agozie, D. Q., & Bekun, F. V. (2022). Can technological innovation, foreign direct investment and natural resources ease some burden for the BRICS economies within current industrial era? Technology in Society, 70, 102037. https://doi.org/10.1016/j.techsoc.2022.102037 Hobbs, S., Paparas, D., & E. AboElsoud, M. (2021). Does Foreign Direct Investment and Trade Promote Economic Growth? Evidence from Albania. Economies, 9(1), 1. https://doi.org/10.3390/economies9010001 Hofbauer, G., & Limanskis, A. (2022). An assessment of the level of sustainability of Foreign Direct Investments (FDI) of German companies in Latvia. Forum Scientiae Oeconomia, 10(1). https://doi.org/10.23762/FSO_VOL10_NO1_6 Hou, F., Su, H., Li, Y., Qian, W., Xiao, J., & Guo, S. (2021). The Impact of Foreign Direct Investment on China’s Carbon Emissions. Sustainability, 13(21), 11911. https://doi.org/10.3390/su132111911 Jardet, C., Jude, C., & Chinn, M. (2023). Foreign direct investment under uncertainty evidence from a large panel of countries. Review of International Economics, 31(3), 854–885. https://doi.org/10.1111/roie.12646 Jaworek, M., Karaszewski, W., & Kuczmarska, M. (2022). Risk perception in practice of Polish MNCs in Kazakhstan during COVID-19 time. Ekonomia i Prawo, 21(3). https://doi.org/10.12775/eip.2022.031 Jiang, W., & Martek, I. (2021). Political risk analysis of foreign direct investment into the energy sector of developing countries. Journal of Cleaner Production, 302, 127023. https://doi.org/10.1016/j.jclepro.2021.127023 Jijian, Z., Twum, A. K., Agyemang, A. O., Edziah, B. K., & Ayamba, E. C. (2021). Empirical study on the impact of international trade and foreign direct investment

on carbon emission for belt and road countries. Energy Reports, 7, 7591–7600. https://doi.org/10.1016/j.egyr.2021.09.122 Joo, B. A., & Shawl, S. (2021). Revisiting the FDI-Growth Nexus for BRICS Economies: New Panel Data Evidence. IUP Journal of Applied Economics, 20(2). Keuschnigg, C. (2021). Corporate Taxation and the Welfare State. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1263317 Lashchyk, I., & Viblyi, P. (2021). Status and trends of investment activity of domestic enterprises. Galic’kij Ekonomičnij Visnik, 70(3). https://doi.org/10.33108/galicianvisnyk_tntu2021.03.071 Le, Q. H., Do, Q. A., Pham, H. C., & Nguyen, T. D. (2021). The Impact of Foreign Direct Investment on Income Inequality in Vietnam. Economies, 9(1), 27. https://doi.org/10.3390/economies9010027 Li, F., Zhang, J., & Li, X. (2022). Research on supporting developing countries to achieve green development transition: Based on the perspective of renewable energy and foreign direct investment. Journal of Cleaner Production, 372, 133726. https://doi.org/10.1016/j.jclepro.2022.133726 Mahbub, T., Ahammad, M. F., Tarba, S. Y., & Mallick, S. M. Y. (2022). Factors encouraging foreign direct investment (FDI) in the wind and solar energy sector in an emerging country. Energy Strategy Reviews, 41. https://doi.org/10.1016/j.esr.2022.100865 Nighat Farooq, Bushra Sagheer, Shahid Ali, & Muhammad Ishfaq. (2022). Measuring the Impact of Foreign Direct Investment on Economic Growth of Pakistan. Journal of Business and Environmental Management, 1(1). https://doi.org/10.59075/jbem.v1i1.164 Ofori, I. K., & Asongu, S. A. (2021). ICT Diffusion, Foreign Direct Investment and Inclusive Growth in Sub-Saharan Africa. Telematics and Informatics, 65, 101718. https://doi.org/10.1016/j.tele.2021.101718 Onody, V. da S. M., Gandra de Carvalho, A. C., Polloni-Silva, E., Roiz, G. A., Mariano, E. B., Rebelatto, D. A. N., & Moralles, H. F. (2022). Corruption and FDI in Brazil: Contesting the “Sand” or “Grease” Hypotheses. Sustainability (Switzerland), 14(10). https://doi.org/10.3390/su14106288 Pacariz, S. (2022). Foreign direct investment (FDI) as indicator of regime type: contemporary Serbian–Turkish relations. Journal of Southeast European and Black Sea, 22(1). https://doi.org/10.1080/14683857.2022.2035034

Prasetyo Khafidzin, H. L. (2021). Determinants Foreign Direct Investment (FDI) Inflow in ASEAN-8. Media Trend, 16(1). https://doi.org/10.21107/mediatrend.v16i1.7227 Samour, A., Baskaya, M. M., & Tursoy, T. (2022). The Impact of Financial Development and FDI on Renewable Energy in the UAE: A Path towards Sustainable Development. Sustainability (Switzerland), 14(3). https://doi.org/10.3390/su14031208 Sawitri, K. A., & Brennan, L. (2022). The investment development path literature: a review and research agenda. Management Review Quarterly. https://doi.org/10.1007/s11301-022-00287-4 Shekhar, S., & Jena, N. (2021). Foreign Direct Investment (FDI) and Its Impact on Economic Development: An Empirical Assessment. Academy of Marketing Studies Journal, 26(S1). Smirnov, E. N., & Lukyanov, S. (2021). Global foreign direct investment: Structural changes in the current crisis. Economy of Regions, 17(3). https://doi.org/10.17059/EKON.REG.2021-3-21 Song, W., & Han, X. (2022). The bilateral effects of foreign direct investment on green innovation efficiency: Evidence from 30 Chinese provinces. Energy, 261, 125332. https://doi.org/10.1016/j.energy.2022.125332 Song, W., Mao, H., & Han, X. (2021). The two-sided effects of foreign direct investment on carbon emissions performance in China. Science of The Total Environment, 791, 148331. https://doi.org/10.1016/j.scitotenv.2021.148331 Sou, J. P. U., & Vinnicombe, T. (2023). Does governance quality matter for FDI-led tourism development? A supply-side perspective. Tourism Economics, 29(2). https://doi.org/10.1177/13548166211052814 Tag, M. N., & Degirmen, S. (2022). Economic freedom and foreign direct investment: Are they related? Economic Analysis and Policy, 73, 737–752. https://doi.org/10.1016/j.eap.2021.12.020 Temouri, Y., Budhwar, P., Jones, C., Ylönen, M., Pereira, V., & Cobham, A. (2022). Tax havens and international business: A conceptual framework of accountabilityavoiding foreign direct investment. International Journal of Management Reviews, 24(3). https://doi.org/10.1111/ijmr.12279 Ullah, A., Kui, Z., Pinglu, C., & Sheraz, M. (2022). Effect of Financial Development, Foreign Direct Investment, Globalization, and Urbanization on Energy Consumption: Empirical Evidence From Belt and Road Initiative Partner

Countries. Frontiers in Environmental Science, 10. https://doi.org/10.3389/fenvs.2022.937834 Wako, H. A. (2021). Foreign direct investment in sub-Saharan Africa: Beyond its growth effect. Research in Globalization, 3, 100054. https://doi.org/10.1016/j.resglo.2021.100054 Wang, R., Usman, M., Radulescu, M., Cifuentes-Faura, J., & Balsalobre-Lorente, D. (2023). Achieving ecological sustainability through technological innovations, financial development, foreign direct investment, and energy consumption in developing European countries. Gondwana Research, 119, 138–152. https://doi.org/10.1016/j.gr.2023.02.023 Wu, Y., & Chen, C. (2021). The Impact of China’s Outward Foreign Direct Investment on Trade Intensity with Belt and Road Countries. Emerging Markets Finance and Trade, 57(6), 1773–1792. https://doi.org/10.1080/1540496X.2019.1646124 Yasmeen, R., Yao, X., Ul Haq Padda, I., Shah, W. U. H., & Jie, W. (2022). Exploring the role of solar energy and foreign direct investment for clean environment: Evidence from top 10 solar energy consuming countries. Renewable Energy, 185, 147–158. https://doi.org/10.1016/j.renene.2021.12.048 Zhao, Y. (2022). An Empirical Study on the Impact of Foreign Direct Investment on Green Total Factor Productivity. Frontiers in Business, Economics and Management, 6(2). https://doi.org/10.54097/fbem.v6i2.2633 Щербаченко, В., & Теслик, А. (2022). ANALYSIS OF CHANGES IN THE WORLD ECONOMY CAUSED BY THE RUSSIAN-UKRAINIAN WAR. Mechanism of an Economic Regulation, 3-4(97-98). https://doi.org/10.32782/mer.2022.97-98.06

INTERNATIONAL BUSINESS REGIONAL ECONOMI COPERATION Lecturer in charge: Dr. Eko Handayanto, Drs. M.M. PREPARED BY: GROUP 9 1. Wilndha Waindhari (202110160311235) 2. Ely Dwi Astutik (202110160311257) 3. Kharisa Agustin Herviani (202110160311264) MANAGEMENT PROGRAM FACULTY OF ECONOMICS AND BUSINESS UNIVERSITAS MUHAMMADIYAH MALANG 2023

ABSTRACT Regional economic cooperation refers to the collaborative efforts of neighboring or geographically connected countries to enhance their economic development and prosperity through mutually beneficial initiatives. Free trade agreements play a vital role in the global economy, serving as a cornerstone of regional economic cooperation that propels us towards a more interconnected world. To remain competitive on the international stage, countries must be part of regional economic collaboration initiatives. In this article, we will first outline the criteria associated with FTAs. Then, we will provide a comparative analysis of the four major FTAs: the European Union, NAFTA, MERCOSUR, and ASEAN. Finally, we will delve into the impact of FTAs on global foreign policy. These aspects underscore the significance of embracing a regional-oriented future. INTRODUCTION The growing significance in our ever-changing global landscape lies in regional economic cooperation (Namany et al., 2023). This term pertains to the collaborative initiatives undertaken by neighboring countries to attain mutual economic objectives (Rising et al., 2022) These efforts encompass activities like forming free trade agreements, collaborating on infrastructure projects, and aligning economic policies (Turkmen, 2022). The relevance of regional economic cooperation is on the rise as nations aim to unlock greater economic growth opportunities, enhance their presence in global markets, and tackle common challenges that require collective solutions, rather than individual national efforts (Lee, 2022) Regional economic cooperation arises as a natural response to the intricate global dynamics that are becoming more complex. (Suwandi, 2022) Nations worldwide are recognizing the significance of collaborating to capitalize on the benefits offered by economic integration, cross-border trade, investments, and policy synchronization.(Milloy et al., 2022). They acknowledge that by working together, they enhance their ability to confront common challenges such as climate change, technological advancements, and regional security instability (Mathur et al., 2023). Regional economic cooperation extends beyond trade and economic expansion; it also encompasses political, social, and security dimensions (Beck et al., 2022). In certain instances, these alliances can transform into larger political entities, akin to the European Union (EU), where various policy aspects are integrated, including a shared currency (Borah & Singh, 2022). Conversely, some alliances may concentrate solely on

economic facets, such as free trade zones, without merging political policies.(Kossay & Wahid, 2022) A notable illustration of regional economic cooperation is the European Union (EU), which has evolved into one of the world's largest entities in this regard (Kim et al., 2022). Through the EU, member states collaborate on various economic aspects, including trade, a shared currency (the Euro), and environmental policies (Lichtenstein, 2021). Since its establishment, the EU has played a pivotal role in establishing peace and stability in Europe and has spurred significant economic progress (Xiang & Jie, 2022). Additionally, the Association of Southeast Asian Nations (ASEAN) stands out as another successful instance of regional economic collaboration in Asia (Gongal et al., 2022). Comprising ten member countries, ASEAN is dedicated to enhancing trade and economic cooperation within the Southeast Asian region. Its efforts have led to increased investments and economic growth across the area (Seidu et al., 2020). Collaborative efforts in regional economic cooperation can play a significant role in tackling global issues (Miraz et al., 2023). For instance, the World Trade Organization (WTO) serves as a mediator in international trade agreements, establishing rules that promote the interests of all its members (Miraz et al., 2023). However, regional economic cooperation encounters several challenges. Member countries often have differing interests, making it complex to align common economic policies (S. Li, 2022). Moreover, some nations might worry about relinquishing a part of their economic decision-making autonomy (MedinaHernández et al., 2021). Despite these challenges, regional economic cooperation is a crucial component of the path toward a more integrated global economy (Jakob, 2022). It offers opportunities for countries to join forces in addressing shared economic challenges and maximizing the advantages of free trade and cross-border collaboration (Hong et al., 2022). Looking ahead, regional economic cooperation is expected to become increasingly intricate and continue to play a pivotal role in the global economy's development (Xiao & Abula, 2023). LITERATURE REVIEW & DISCUSSION Differences Of Regional Economic Integration Cooperation Regional economic integration is a process where multiple countries or regions collaborate to form a more substantial and unified economic entity (Mei et al., 2022). Throughout this process, the extent of cooperation can vary, leading to different levels of regional economic integration (Traoré, 2021). This article explores the distinctions in the

levels of cooperation in regional economic integration, ranging from basic to more advanced stages (Zhu et al., 2021). At the most fundamental level of cooperation, known as Free Trade, member states agree to eliminate or reduce trade barriers among themselves (Hall et al., 2020). This involves the removal of tariffs, quotas, and customs duties between countries, facilitating the freer movement of goods and services (Ishikawa, 2021). An illustrative example of this level of cooperation was seen in the North American Free Trade Agreement (NAFTA) before it was replaced by the United States-Mexico-Canada Agreement (USMCA). (Keiser & Tortora, 2022) The next stage of cooperation involves the unification of the Single Market. In this phase, member states not only eliminate trade barriers but also address non-tariff barriers that could hinder the movement of goods, services, and production factors. (Sunitiyoso et al., 2022) A prominent example of this advanced level of cooperation is evident within the European Union, where a unified market allows for the free flow of goods, services, capital, and labor among its member states (Elms, 2020). Furthermore, in addition to establishing a single market, member states strive to synchronize their economic policies more closely (Cifuentes-Faura, 2021). This synchronization may encompass fiscal, monetary, and tax policies, as well as the harmonization of regulations in various sectors of the economy (Chan, 2020). A notable example of this level of cooperation can be observed in the eurozone within the European Union, where multiple countries have adopted a common currency, the Euro, and have aligned their monetary policies accordingly (Heaton & Schmitz, 2022). Complete integration represents the most advanced form of regional economic integration (Le, 2022). It entails the establishment of a fully unified economic entity, where member states amalgamate most aspects of their economies (Lubis & Irham, 2022). This integration can involve currency mergers, collaborative economic governance, and even alignment in foreign policy (Arner et al., 2020). The European Union exemplified this level of integration to some extent through its formation and the adoption of the Euro currency (Njiku et al., 2022). In addition to the various levels of cooperation, several crucial elements influence the extent to which regional economic integration can accomplish its objectives (Nor Paizin, 2021). One pivotal element is political commitment, which significantly affects the level of cooperation attained in regional economic integration (Shumba, 2023). Strong political support tends to propel countries towards achieving a more profound level of cooperation (Liu et al., 2022). Differences in economic size, developmental level, and economic structure among member states can impact the progress of regional economic integration (Zadworna, 2022).

Countries with significant economic disparities might encounter challenges in achieving extensive cooperation (Berry, 2021). Additionally, the matter of national sovereignty plays a crucial role (Sharma, 2021). Countries must be willing to relinquish some sovereignty to facilitate deeper cooperation within the region (Ng, 2021). Effective dispute resolution mechanisms are vital in regional economic integration to ensure conflicts can be resolved without jeopardizing cooperation (Liao & Tao, 2023). Coordination of monetary and fiscal policies among member states becomes essential, especially when a single currency is involved (Laurens & de la Piedra, 2021). Lastly, the freedom of movement, which includes the mobility of people between member states for work, education, and other purposes, is another critical factor in achieving deeper integration (Tiikkaja & Liimatainen, 2021). It's crucial to acknowledge that every regional economic integration process is distinct, shaped by the specific circumstances, goals, and political dynamics within the region (Pianta & Brutschin, 2022). Some regions might achieve complete integration, while others may only attain a Free Trade level. Regardless, regional economic integration remains a significant element of international trade and collaboration between nations (Sinimole & Saini, 2021)(k. r. sinimole). Economic And Political Arguments For Kerjasama Regional Economic Integration Cooperation Regional economic integration cooperation is a phenomenon where several countries or regions come together to form a larger economic entity (Milloy et al., 2022). This process encompasses a variety of economic and political factors that need to be considered (Liu et al., 2022). Comprehending the economic and political rationales behind this cooperation is essential for a more profound understanding of the customs and their consequences (Zhu et al., 2021). One of the primary arguments in favor of regional economic integration cooperation is the enhancement of trade among member states (Hosseini & Norouzi, 2020). By reducing or eliminating trade barriers like tariffs and quotas, trade can flow more freely, resulting in an increased exchange of goods and services between these nations (Mwasha, 2015). Regional economic integration allows for the realization of economies of scale, enabling the creation of larger markets where businesses can achieve greater economies of scale (Vidovic, 2020). Economies of scale, in turn, can lead to reduced production costs and, consequently, more affordable products for consumers (Mauler et al., 2021). Regional Economic Cooperation offers multiple advantages, including the facilitation

of economic diversification by enabling more efficient resource allocation and the development of diverse economic sectors, thereby reducing dependence on a single industry (Ndubuisi, 2020). Furthermore, it has the potential to attract increased foreign direct investment by creating larger, more attractive markets for investors within member states (Ziegenhain, 2020). These cooperative efforts often lead to shared benefits, such as heightened employment opportunities, accelerated economic growth, and enhanced global competitiveness, benefiting both the entire region and the participating countries (Boehlke et al., 2020). One of the most compelling political arguments for regional economic integration cooperation lies in its potential to foster political stability (Fernandez et al., 2020). Strengthening economic connections between nations reduces the probability of armed conflicts (Yang et al., 2022). While regional economic integration often demands some relinquishment of national sovereignty, it concurrently establishes shared control over certain economic and trade policy aspects, culminating in a form of shared sovereignty that aids in addressing conflicts and challenges that may emerge (Willie et al., 2021). Moreover, this form of integration can enhance political lobbying prospects, as member states, driven by shared economic interests, may be more inclined to collaborate on legislative and policy measures that advance these common objectives (Samek Lodovici, 2021). Through regional economic cooperation, nations have the opportunity to bolster their global influence (Kalbarczyk et al., 2022). Collaborative efforts enable them to wield a more robust presence in international organizations and global trade discussions (Barrowclough & Birkbeck, 2022). Additionally, when confronting shared challenges like climate change, energy security, or immigration, member countries can collectively address these issues more effectively, as their combined efforts allow for more efficient solutions compared to tackling these problems in isolation (Chandra Voumik & Sultana, 2022). In summary, regional economic integration cooperation is a multifaceted endeavor, underpinned by compelling economic and political rationales (M. Li et al., 2022). It serves as a mechanism for accelerating economic growth, fostering political stability, and enhancing global influence (Chutcheva et al., 2023). However, it's imperative to recognize that such cooperation necessitates trade-offs and the relinquishment of some aspects of national sovereignty (Nyokabi et al., 2023). Therefore, a comprehensive grasp of the economic and political dynamics inherent in regional economic integration cooperation is vital for making informed decisions and comprehending its ramifications for the participating nations (Hyötyläinen, 2022).

Rconomics And Politics That Oppose Regional Economic Integration Cooperation Regional economic integration cooperation is a multifaceted and often contested phenomenon, encountering both economic and political opposition (Bachmann, 2023). In this context, there are two key arguments against regional economic integration (Lee, 2022). The first centers on economic concerns, particularly the structural changes it triggers within member states (Khajuria et al., 2022). This transformation may have adverse effects on certain sectors of the economy as they contend with competition from more robust neighboring nations, potentially leading to job reductions and associated social challenges (Ziegenhain, 2020). Moreover, countries engaged in regional economic integration may encounter fiscal deficits resulting from the elimination of tariffs and trade barriers, which, in turn, can diminish government revenue and impact the capacity to provide fundamental services such as education and healthcare (Aliyev et al., 2023). Another set of obstacles in regional economic integration pertains to regulatory issues, as it frequently necessitates the alignment of regulations across member states (Babenko et al., 2020). This proves to be a formidable challenge due to the inherent differences in legal frameworks among participating countries, demanding extensive time and effort for harmonization (Globalization, 2020). When a nation's economic reliance becomes excessively contingent on neighboring states within the regional economic integration framework, it renders the country's economy more susceptible to fluctuations in partner nations (Caporale et al., 2023). A financial crisis in one member state can swiftly propagate to others in certain cases, regional economic integration can exacerbate economic disparities among member states, as economically stronger countries can wield market dominance and exploit weaker counterparts (Krickovic & Pellicciari, 2021). The second argument against regional economic integration is of a political nature, focusing on concerns about national sovereignty (Maggi & Ossa, 2021). A key political objection to regional economic integration revolves around the need to cede some authority over economic policies to attain integration, potentially perceived as a challenge to a nation's sovereignty (Ikram et al., 2022). Some countries might worry that regional economic integration could encroach upon their individual economic growth strategies, as it prioritizes regional development over their national aspirations (Lee, 2022). Furthermore, this form of integration can give rise to unwelcome political transformations, such as the requirement for member states to adopt uniform or closely aligned foreign policies, which could erode their capacity for independent political decision-making (Muhammad, 2020).

In certain instances, regional economic cooperation may give rise to security challenges (Hill, 2023). When political conflicts or tensions emerge among member states, economic integration has the potential to jeopardize regional stability(Aliyev et al., 2023). The negotiation process between member states in regional economic cooperation can be intricate and time-consuming, often leading to protracted proceedings and frustrations (Hong et al., 2022). It is crucial to recognize that, alongside the arguments against regional economic integration, there are significant advantages to be derived (Namany et al., 2023). By acknowledging these arguments, member states can formulate more effective cooperation frameworks and mitigate their adverse effects. Understanding the economic and political ramifications of regional economic integration cooperation constitutes a crucial step in making informed decisions in an evolving global landscape (Arner et al., 2020). When appropriately applied, regional economic integration can serve as a potent tool for advancing economic growth and political stability (Cifuentes-Faura, 2021). The History, Current Scope, And Future Prospects Of The World's Most Important Regional Agraemer Economies In Regional Economic Cooperation. The region encompassing Asia, Africa, and the Middle East, often referred to as Agraemer, boasts a rich historical legacy of regional economic collaboration (Lee, 2022). This heritage comprises a tapestry of kingdoms, trade networks, and cultural exchanges that evolved across the ages. Nonetheless, contemporary regional economic cooperation within this region commenced in the 20th century, particularly in the aftermath of World War II (Nikolić, 2020). Post the Second World War, nations in the Agraemer region began to recognize the significance of economic cooperation in addressing shared challenges and fostering economic advancement. Consequently, various regional organizations and trade pacts emerged, with the objective of establishing larger markets and expanding access to global markets (Radcliffe & Page, 2020). The current landscape of regional economic cooperation within the Agraemer region exhibits a broad spectrum of initiatives (Vecchi et al., 2021). Among the most prominent regional organizations, the Arab League stands out as an assembly of Middle Eastern and North African Arab states (Wapmuk & Ali, 2022). While its primary focus is on political collaboration, it also encompasses economic objectives, such as trade, investment, and regional economic development. Additionally, the African Union, operating across the African continent, endeavors to foster economic and political integration (Yelena & Hans,

2021). This includes diverse economic undertakings, like the African Continental Free Trade Area, designed to establish a more extensive unified market in Africa (Wapmuk & Ali, 2022). In addition, the Association of Southeast Asian Nations (ASEAN) encompasses ten Southeast Asian nations and places a significant emphasis on regional economic collaboration, encompassing facets like free trade, investment, and economic integration (Yelena & Hans, 2021). Furthermore, the Organization of Islamic Economic Cooperation (OIC), comprising nations with predominantly Muslim populations, though primarily centered on political and social cooperation, also incorporates economic elements, such as trade and investment (Lee, 2022). Meanwhile, the Gulf Cooperation Council (GCC), comprised of six Persian Gulf nations, including the Arab League and the Free Regional Area, engages in more profound economic integration, featuring a shared currency known as the Gulf dinar (Stender et al., 2021). The future outlook for regional economic cooperation within the Agraemer region is multifaceted and dynamic (Jia et al., 2022). Firstly, there is considerable potential for amplified trade and investment due to the region's abundant natural resources, expanding population, and well-developed infrastructure, rendering it highly appealing to global business interests (Suwandi, 2022). The continued advancement of economic integration at the regional level in Asia and Africa is anticipated to yield substantial advantages, including augmented trade, the realization of economies of scale, and heightened competitiveness (Ziegenhain, 2020). Nevertheless, there are noteworthy challenges that necessitate attention, encompassing political disputes, economic disparities, and infrastructure deficiencies (Seidu et al., 2020). Effective resolution of political conflicts stands as a pivotal factor in fostering stability and facilitating economic growth across the region (Kossay & Wahid, 2022). Moreover, the Agraemer region is poised to assume a progressively more significant role in the global economy (Seidu et al., 2020). With countries like China displaying active investment interests in the region, Agraemer is set to become increasingly integrated into global trade networks. Ultimately, the ongoing regional economic cooperation in the Agraemer region has the potential to enhance the living standards of its residents through the development of infrastructure, job opportunities, and sustainable economic expansion(Kim et al., 2022). The Agraemer region harbors substantial potential in terms of regional economic collaboration, and by surmounting challenges and capitalizing on opportunities, it can achieve accelerated economic growth and an elevated quality of life for its populace, all while assuming an increasingly vital position in the global economy (Kalbarczyk et al., 2022).

ManagementImplications Inherent to The Regional Economy OfIntegration Agreements The management and economic policies in the regions participating in regional economic cooperation are profoundly influenced by the regional economy and integration agreements (Kalbarczyk et al., 2022). These integration accords frequently incentivize, and sometimes mandate, the alignment of economic policies among member states. This encompasses the harmonization of trade regulations, fiscal measures, monetary strategies, and various other policies (Vidovic, 2020). The consequence of this is that member states are required to align or collaborate on their policies to attain the objectives of integration. In managing this, regional economic managers are tasked with recognizing discrepancies in economic policies among member states and facilitating the coordination of harmonization processes, necessitating effective communication and an in-depth comprehension of pertinent economic considerations(Yelena & Hans, 2021). The second aspect, the alignment of tariffs and trade barriers, is a common component of regional economic integration, often entailing the elimination or reduction of tariffs and trade hindrances among member states (Stender et al., 2021). This can exert a substantial influence on specific industries, especially those previously protected by tariffs. In terms of managerial responses, it is essential for management to grasp the repercussions on the affected sectors and formulate strategies to facilitate their adjustment (Stender et al., 2021). These strategies may encompass employee retraining, diversification of production, or the exploration of new export opportunities. The third dimension, pertaining to its impact on the labor market, underscores that regional economic integration can profoundly affect labor dynamics (Stender et al., 2021). While increased trade and investment can create fresh employment opportunities, it can simultaneously bring about changes in labor demand within certain sectors (Muhammad, 2020). Management actions necessitate human resources management adapting to these labor market shifts, potentially involving workforce training, corporate restructuring, or exploring alternative employment avenues (Muhammad, 2020). The fourth facet concerns the management of economic uncertainties that may arise from regional economic cooperation, as member states become more interdependent, leading to potential uncertainties such as currency fluctuations, policy volatility, and geopolitical risks (Wapmuk & Ali, 2022). In terms of managerial responses, financial management is tasked with mitigating currency risk, investing in financial instruments capable of offsetting the impact of currency fluctuations, and establishing contingency plans to address economic

uncertainties. The fifth agreement relates to the advancement of regional supply chains (Stender et al., 2021). In regional economic cooperation, companies often engage in more intricate regional supply chains, which can present new opportunities but also logistical, supply chain management, and regulatory compliance challenges (Ikram et al., 2022). To address these, supply chain management should strive to optimize regional supply chain operations, ensure seamless distribution, and adhere to relevant trade regulations (Ziegenhain, 2020). The final agreement pertains to market diversification, wherein regional economic cooperation can unlock access to more expansive and varied markets (Jakob, 2022). While this presents a promising business opportunity, it necessitates the formulation of appropriate marketing strategies (Jakob, 2022). In terms of managerial responses, the field of marketing management must craft strategies tailored to accommodate the diversity of the market (Elms, 2020). This involves a comprehensive comprehension of regional consumer preferences and an awareness of the local competitive landscape (Medina-Hernández et al., 2021). In conclusion, integration accords within regional economic cooperation wield significant influence over economic management and policymaking (Jakob, 2022). Management is tasked with comprehending the economic implications and the requisite actions for adaptation, while also leveraging the opportunities that materialize through regional economic integration (Sharma, 2021). With a deep understanding and effective planning, integration agreements can serve as a potent instrument for fostering economic growth and regional stability (Cifuentes-Faura, 2021). CONCLUSION Differences Tingkat Kerja sama regional economic integration cooperation Regional economic integration is a process in which several countries or regions work together to create a larger and integrated economic entity. The first element of political commitment is that thelevel of cooperation achieved in regional economic integration often depends on the level of political commitment of member states. Economicdifferences-differences in economic size, level of development, and economic structure between member states can affect the extent to which regional economic integration can develop. Economic and political arguments for regional economic integration cooperation Regional economic integration cooperation is a phenomenon in which a number of countries or regions unite to create a larger economic entity. Understanding the economic and political

arguments underlying this cooperation is important to gain a deeper understanding ofthe habits and their impact.One of the main arguments for regional economic integration cooperation is the increase in trade between member states. In overall, regional economic integration cooperation is a complex step that includes strong economic and political arguments. Therefore, understanding the economic and political dynamics behind regional economic integration cooperation is essential to take the right decisions and understand the impact on the countries involved Economics and politics that oppose regional economic integration cooperation Regional economic integration cooperation is a complex phenomenon and is not always accepted with open arms. There are economic and political arguments that criticize and oppose the idea of regional economic integration. In this case there are two arguments, namely the first, the economic argument against Regional economic integration, where thereare economic changes and one of the main arguments against regional economic integration is the change it brings in the economic structure of member states. Whenthe economic dependence of a country becomes too dependent on neighboring countries within the framework of regional economic integration, this can make the country's economy more vulnerable to changes in partner countries. Sometimes, regional economic integration can result in economic inequality between member states. The second argument is a political argumentagainst Regional economic integration where there is national sovereignty*: one of the main political arguments against regional economic integration is the sacrifice of national sovereignty. Nationalgrowthsome countries may feel that regional economic integration interferes with their national economic growth plans. Understanding the economic and political consequences of regional economic integration cooperation is an important step in making smart decisions in a changing global context. After the end of the World War, the countries of the Agraemer region began to realize the importance of economic cooperation to overcome common challenges and promote economic growth. The organization has a strong focus on regional economic cooperation, which includes free trade,investment, and economic integration. The prospects for the future ofrospek regional Economic Cooperation in the Agraemer region are sophisticated and varied: First, trade and investment: the Agraemer region has great potential for trade and investment growth. Inthelong run, regional economic cooperation in the Agraemer region can lead to improved welfare for its residents through infrastructure development, job creation, and sustainable economic growth. Management implications

inherent to the regional economy of integration agreements The regional economy and integration agreements in regional economic cooperation have a significant impact on the management and policy of ekonomi in the regions involved. Regional economic integration agreements often encourage or even require harmonization of economic policies between member states. Management actions regional economic managers need to identify differences in economic policies between member states and coordinate harmonization processes.The second agreement, the alignment of tariffs and Trade Barriers, regional economic integration often includes the removal or reduction of tariffs and trade barriers between member states. The fourth agreementwhere economic uncertainty is managed, regional economic cooperation can increase economic uncertainty because member states are more dependent on each other. The fifth agreement is pengemthe development of regional supply chains, in regional economic cooperation, companies often involve themselves in more complex regional supply chains. In conclusion, integration agreements in regional economic cooperation have a significant impact on economic management and policy. Management needs to understand the economic implications and the actions needed to adapt and take advantage of the opportunities that arise as a result of regional economic integration.