What does the term 'interdependence' refer to in economics?

Interdependence in economics refers to a mutual reliance between countries or economies, highlighting the interconnectedness of different economic entities. This concept is particularly relevant in the context of international trade, where nations depend on one another for resources, goods, services, and markets. When countries specialize in producing certain goods or services and trade with others, they create a network of economic relationships that can benefit all parties involved.

Interdependence emphasizes how economic activities in one country can significantly impact others, leading to shared economic outcomes, challenges, and opportunities. For example, a downturn in one country's economy might affect the demand for imports from its trading partners, showcasing how reliant economies are on one another in a globalized world.

The other options focus on distinct aspects of economics, such as performance measurement, policy assessment, or historical data analysis, which do not capture the essence of interdependence as it relates specifically to the relationships and reliance among economies.