pls give me a brief explanation for my thesis, i need it for my
final exam..thanks
2007-03-21 18:31:46 · 4 answers · asked by hunnycate 1 in Business & Finance ➔ Other - Business & Finance
To keep it simple, most countries can produce things surplus to their own needs, but there are also things that they desire that they do not have enough of. A country like the US can grow probably enough food to feed it's people, but still would like variety, like fish and fruit and vegetables that they buy from other countries, They do not have enough oil, so they buy it from many countries in the world. But to buy means to exchange a part of your economy for these goods, you keep score with money, but it is manufactured goods, or government bonds paying good interest, or ownership of the Dow and S & P.
when you buy from the world, they use the money to buy from you. It is more compicated than that in practice, but that is what happens, With different moneys and different countries, a good hope is to have your trade balance, you sell stuff that is surplus, you buy stuff you need, and overall you hope for no debt to occur. If you are fortunate to sell more than you buy, you have a trade surplus, if you buy more than you sell, you have a trade deficit. And as in real life for people, If a country goes into debt enough, it goes bankrupt.
2007-03-21 19:02:09 · answer #1 · answered by bob shark 7 · 0⤊ 0⤋
Usually, this topic is reduced to the individual level. Everyone is good at something, but not everyone is good at everything. To survive, we find it necessary to trade our expertise for someone else's. A dentist usually isn't great at auto repair, auto mechanics aren't great as accountants, etc.
The same is true of nations. Libya isn't a great farming country, but they need to eat. Argentinians aren't too good at finding oil, but they raise some good beef. Individuals and nations are forced to sell what they have to get what they don't, it's that simple.
2007-03-21 19:38:05 · answer #2 · answered by Scott K 7 · 0⤊ 0⤋
confident, it truly is.... for many (yet not all) worldwide places. think of a few small united states of america with a quite great inhabitants and undesirable crop growing to be situations... like Kuwait. In 2006 Kuwait had an expected inhabitants of two,418,393. the final inhabitants density substitute into 136 persons in step with squarekm the country is in simple terms about all desolate tract and can't strengthen nutrients vegetation for the individuals who stay there. in the event that they won't commerce with different countries, they might starve to dying. considering that they have a great number of oil, they commerce or sell oil and purchase or import nutrients. worldwide commerce has allowed the populations of worldwide places like Kuwait to strengthen a lot greater than they might ever be devoid of it, and so now it truly is mandatory for those worldwide places to proceed to exist.
2016-12-19 11:12:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No its not i think we outa shut down everything and just buy american made stuff and tell China and Japan to go sell thier crap somewheres else...Repeal NAFTA ,,,,,We got plenty of Oil in Alaska it would raise pump prices but so what we could afford it
2007-03-21 18:41:34 · answer #4 · answered by Anonymous · 0⤊ 0⤋