Economic Interdependence Essay

396 Words2 Pages
Economic Interdependence Economic Interdependence is when one depends on others to produce their product, it's a division of labor. For example, if one wanted to build a car but they could only put car parts together, they would have to work with others who specialize in manufacturing parts of the car such as the wheels, windows, car seats. If the business attempted to create car parts, even though they cannot, their business wouldn't flourish no matter how good they can put together a car. This system is both a positive and negative. The positive aspects of Economic Interdependence is a better quality of products for the consumers, more profit to the sellers. There would be comic book artists who also make poor tasting cheese without Interdependence. Specialization is key. The negative aspects go to the sellers, they after all have to depend on others to produce a product and in the process may not get the results desired because of trouble working together or whatever the case. Interdependence is important to the world economy because it expands the limitations of production. We can produce and sell more high quality products. It stimulates the economy, keeps it going. Economic Interdependence also reduces the risk for great amounts of scarcity. If a country isolates itself and doesn't trade and work with other countries, there will be very little room for growth because of It may not be in a very good shape but at least it isn't suffering from scarcity. Our economy gains connections with the world. Let's say you are a farmer who sells dairy products, you will want to spend all your time making those products because you can make money doing it. You won't want to spend your time trying to grow food that don't grow well in the. If you makes laptops, then your company will want to spend its time making laptops and not trying to also grow its

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