Free trade agreements, economic unions, and monetary accords have contributed to the economic growth of participating nations by expanding access to markets for goods and services. Expanded markets enable nations to produce at a greater level in industries where optimal production levels exceed the domestic demand. Progress towards multilateral cooperation has been painfully slow for some and has generated tense resistance by others. Protectionism and monetary controls remain the mainstay of national responses towards international imbalances. Aside from the natural reluctance of nations to yield sovereignty in economic issues, there remains the sense in every nation that responsibility for economic decisions must reside in domestic constituencies and that external relations are the peregrine concern of national governments.
Unilateral advantage is therefore the primary consideration in the formulation of economic policy.
Effective international cooperation requires the assent of every participant. The task of persuasion to reach and implement a satisfactory agreement becomes exponentially more difficult with each additional participant. Once agreement has been achieved on any number of issues, the task of implementation rests entirely on the good faith of each sovereign participant. Unless the respective governments exercise direct control over national commerce, the advantage gained through international cooperation is dependent on the ability of domestic businesses to respond to the measures underscored in a multilateral agreement. The question remains whether the efforts to reach international understanding in multilateral negotiations can be justified in terms of their beneficial economic results.