Beggar thy neighbour
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Beggar thy neighbour, or beggar-my-neighbour, policies seek benefits for one country at the expense of others. Such a policy attempts to remedy an economic problem in one country by means which tend to worsen the problems of other countries. The term was originally devised to characterize policies of trying to cure domestic depression and unemployment by shifting effective demand away from imports onto domestically produced goods, either through tariffs and quotas on imports, or by competitive devaluation. More recently, beggar thy neighbour policy has taken the form of reducing domestic inflation through currency appreciation. This improves the terms of trade and thus reduces cost-inflationary pressure in the appreciating country but tends to increase cost inflation in the country's trading partners.
Tax haven activities are another example: one country allows another country's citizens or corporations to avoid or evade taxes, harming the other country's ability to raise taxes according to voters' wishes. "Beggar thy neighbour" strategies of this kind do not only apply to countries: overgrazing provides another example, where the pursuit by individuals or groups of their own interests leads to sub-optimal outcomes. This dynamic is also known as the "tragedy of the commons."
