In general cooperation can be understood as joint production (activity) or consumption by a group of people for their mutual benefit. It is the opposite of competition which is based on individual efforts to achieve a goal. There are different approaches regarding how to deal with the concepts of cooperation and competition in economics. International trade is a comprehensive solution to deal with it. International trade is about the purchasing, selling or exchanging of goods and services across national borders. 

Trade is the all-time basis for forming economic relations. Key trade economic theory explains that trade offers welfare gains and that countries involved in international trade can gain substantially from cooperation. The free movement and exchange of goods was one of the primary reasons to establish the European Union. Currently the EU has progressed from a customs union to a single market and the euro area of nineteen countries. Also European integration has      increased the European economy covering almost the whole continent with membership of twenty-seven countries. The notion of an internal market is built on the principle that market participants should operate with the greatest possible degree of economic freedom, unhindered by any (national) barriers to competition. Single Market establishes the EU as one economic entity with international trade agreements as the main external competence of the EU. The aim of EU competition policy is to safeguard the correct functioning of the single market. In essence, it ensures that enterprises have the possibility to compete on equal terms on the markets of all Member States.

Table 1. Evidence for economic results of competition and cooperation

Rising growth of exports in the world and a steady increase in trade as a share of the size of the world economy prove that trade has become ever important. The growth of international trade has been stimulated by the steady decline of trade barriers after World War II. There are arguments that support a free trade policy as well as arguments that support various types of protectionist policies. However, the Ricardian model of international trade introduces the principle of comparative advantage, which helps to understand reasons supporting international trade. This model explains for example how less productive nations can benefit from free trade with their more productive neighbors.

Exploration of the international trade flows helps to discover effects of economic cooperation and competition. Eurostat provides data and an interactive data visualization on trade in goods and trade effects on employment and income in the EU. There are different ways of conducting trade analysis. First, one should start from a general description and then go into details. Next, the current situation should be compared to the past to find out if trade growth promotes economic competition and cooperation. Some suggestions on how to do trade analysis for competition and cooperation examinations in the EU are presented in Table 

This learning scenario is an opportunity for students to become aware of their countries trade characteristics. They can realize how people from different countries benefit from their country’s export and how important it is to keep economic openness. Finally, students can discover how trade promotes economic cooperation and competition in the European economy.