How does a country's economic strength affect countries around it?

Answer 1

A country's with high economic strength, such as the hegemonic strength of the United States, often leaves countries around that country at a disadvantage, but those same countries benefit from the economic power of their hegemonic neighbor. The reason for this is due to the state's motives to retain their economic power. For instance, Mexico and Canada's economic power are mediocre in comparison to the United States, but they still both highly benefit off trade coming from such a large economic power being so close. Trade routes are cheaper, tariffs are lighter, and there are a plethora of resources that the neighbors have easier access to. Also, the country with high economic strength often benefits off these good relationships because of their own national security.

Countries that surround a powerful economic state:1) Benefit off of the trade coming from that country; tariffs are lighter, resources are vast, shorter trade routes allow cheaper transportation 2)Become disadvantaged through competitive foreign policy acted out by that power economic state(Powerful states don't want to lose power to their neighbors) 3) Countries often become dependent economically on their powerful neighbor due to the access of a high amount of resources, and since its better for the powerful neighbor to appease their surrounding countries than to anger them(for the sake of national security), relationships are often maintained at good standard.

Vice versa if a country is surrounded by a weaker country