pete with the European Union. The main aspects of NAFTA are: prioritizing deals with the countries involved in the trade agreement and having no tariffs. NAFTA is the largest world’s largest free trade agreement. There has been a steady relationship with the countries involved, and no wars have occurred. If the agreement were to be trashed, the U.S. would lose approximately 195 billion USD by 2025 (Erken, 2018). Canada would lose approximately 30 billion USD, and Mexico would lose 33 billion USD (Erken, 2018). These numbers only factor in the loss of money induced by tariffs, but in a situation of war, there would be a greater economic damage.
In a state of war, the economic stipulations multiply, because trade stops between countries involved in wars altogether. The markets are closed, and the economic equilibrium shifts; supply doesn’t equal demand. Equilibrium shifts can cause things the waste of products, as well as unhappy citizens. Countries realize this risk and do not get involved in wars against countries they have deals with. Alliances formed before wars are typically the ones that remain once a war begins, which is demonstrated by WWI with Germany, Austria-Hungary, and Russia. On the other hand, globalization limits the actions that countries are willing to take in order to help when it is truly needed. Globalized economies prevent unnecessary wars, but also prevent necessary interventions. An example is the Jamal Kashoggi murder case in 2018. Even after investigations, and the confirmation of the murder being ordered by the Saudi prince, the U.S. did not acknowledge their responsibility. This is mainly due to the major presence of oil in Saudi Arabia, and the U.S.’s dependency and interest in that asset.
The European Union is another organization that has contributed to the globalization of the economy. It consists of twenty-seven countries. The concept of a union began after WWII when many countries were struggling economically, but also wanted to reconcile their conflicts, particularly between France and Germany. The primary goal of the European Union is to promote economic growth by making it easier for European countries to grow their economies and integrate their economies with other European countries. Since the formation of the European Union, there have been no wars between countries within the EU. In fact, in 2012, the EU won the Nobel Peace Prize. They won for their commitment to “the advancement of peace and reconciliation, democracy and human rights in Europe” (Williams, 2016). The Nobel committee also recognized the connection of the EU and the transformation from a war ridden Europe, to a peaceful Europe. None of the countries currently in the EU have had wars with each other, despite a long history of wars before its formati
