ABSTRACT
East-West economic co-operation has been greatly stimulated by the changes in world politics of recent years. Political detente has paved the way for increasing economic exchanges between capitalist and socialist countries, considered beneficial by both groups. Equally, closer economic relations have contributed to a wider appreciation of strategies of general co-operation instead of continued confrontation. As industrial co-operation is not tied to any specific kind of contract and serves many different policy objectives, the term itself does not carry any specific meaning. Industrial co-operation agreements may help to reduce the instability of markets, and barriers to East-West trade resulting from the individual countries being part of different areas of economic integration. Economic motives are not always similar in western and eastern countries. Western companies frequently are interested in raw materials, semi-processed goods, and cheap labour the East can supply; they may also look for additional outlets for their production, especially at times of a business recession.
