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Abstract
In Europe, America, Africa and Asia, the Twentieth Century
has witnessed movements towards economic unions and/or common trading
arrangements. The fact that early movements at common trading policies
were among advanced countries, indicate that even economies at such
advanced stages of development see ample benefits to be derived from
such associations. The early theories of economic co-operation centred
on trade creation and trade diversion are said to be static and are
therefore inapplicable to the situation in developing countries. This
is due in most cases to their low volume of trade in the world and even
between the developing states themselves. Hence economic co-operation
here is seen in the light of its contribution to economic growth
and/or structural transformation of these developing countries. Thus
alliances like those for cocoa and coffee are seen as a means of obtaining
high export prices to provide the foreign exchange necessary
for economic development.