The international economy is a world where cooperation and competition are intertwined. In the case of free trade, the principle of the “invisible hand” operates in the short run. That is, trade benefits both the exporting and importing countries. In this sense, international trade is cooperative. However, when considering the imitation of technology and changes in export products, it is not guaranteed that all countries will benefit together in the long run. In fact, low-income countries can learn from high-income countries in terms of technology and management, and develop industries that export products competing with the traditional export products of high-income countries. As a result, high-income countries may suffer losses. This chapter demonstrates that such dynamic changes are the essence of the East Asian Miracle.