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Countries are interdependent, which means they rely on each other to support their economies. They need other countries to buy their exports to have money to buy resources that are not produced in their country. Also it is so that countries can specialize in producing a good or service and know that the goods that they do not have can be imported from other countries who specialize in that good.
Countries have a lot of expences (health services, military, wages etc) and taxes rarely cover all of these, so they need to borrow to offset the deficit.
Also if a country wants to prosper, they need money to improve life conditions of their inhabitants. When the life conditions improve, the citizen will be able to pay the money back in a virtuous circle.
What else can I help you with?
What do the caricom countries trade and why do they trade?
What do the caricom countries trade and why do they trade?
What countries do Romania trade with?
Romania has trade relations with the majority of the countries in the world.
Why do countries erect barriers to trade?
Why do countries sometimes erect trade barriers
Why do countries need to participate in international trade?
why is it necessary for countries to partake in international trade
How can fair trade help less developed countries?
Fair trade can help less developed countries by allowing them to trade easier with more advanced countries such as the United States. When they are able to trade their goods with richer countries, it helps their economy.
Can countries trade with each other without a Free Trade Agreement?
Yes, Countries can trade with each other without free trade agreement.
Did pirates trade with countries?
No, they steal from countries.
How does trade link countries?
International trade is the exchange of goods and services between countries. Trade happens because no country has everything it needs. Countries buy things that they do not have, or things that are cheaper, from other countries.
How is Greece connected to other countries?
They are connected because countries trade. Greece mainly trades with countries in Europe but it does trade with countries around the world.
What was the trans-atlantic trade system?
The trade between the north american countries and the european countries.
What was the trans Atlantic trade system?
The trade between the north american countries and the european countries.
How do countries trade?
they trade countries with the united states,japan,united kigdom,china,and Mexico they trade countries with the united states,japan,united kigdom,china,and Mexico
