Why do countries cooperate?
An economic cooperation organisation is a group of countries that work together to advance their economies. Its aims include promoting trade, widening markets, attracting investment and raising the standard of living. Such cooperation may be regional, among neighbouring countries, or global, involving nations from around the world. Malaysia belongs to several such bodies to develop its economy.
Key idea
Countries cooperate to promote trade, widen markets and boost their joint economic development.
Regional and global organisations
- ASEAN — Association of Southeast Asian Nations, formed in 1967; Malaysia is a founding member.
- APEC — Asia-Pacific Economic Cooperation, linking countries around the Pacific Ocean.
- EU — European Union, which uses a common currency, the Euro.
- OPEC — Organization of the Petroleum Exporting Countries, which controls oil output and prices.
Benefits of cooperation
Through cooperation, member countries enjoy wider markets, tax-free or low-tax trade, transfer of technology and investment opportunities. A country's products can be sold more easily to other member nations, which raises exports and national income.
Besides economic gains, such cooperation strengthens ties between countries, builds mutual understanding and helps maintain regional peace. Malaysia also benefits from shared aid during disasters or economic difficulties.
Remember
ASEAN is regional (Southeast Asia) while OPEC focuses on oil-exporting nations; the EU uses the Euro currency.