ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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One country depends on another
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Two countries depend on another country
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Two countries economies rely on each other
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Taxes are higher
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Detailed explanation-1: -“Economic interdependence refers to the relationship between two individuals, groups, sects, businesses, regions, or countries where each of them is dependent over the other for the supply of necessary goods and services.”
Detailed explanation-2: -Interdependence means that the firms in the market must take into account the likely reactions of their rivals to any change in price, output or forms of non-price competition. It is a key aspect of business competition and behaviour in an oligopoly and can be modelled by the use of game theory.
Detailed explanation-3: -foreign dependency, global power structure in which weaker countries are economically reliant on stronger countries, allowing the stronger countries to exercise significant control over the weaker countries’ economic and political behaviour.
Detailed explanation-4: -An example of the benefits of economic interdependence includes the United States and China, or the United States and India. Both China and India were less developed nations in the 1960s and 1970s.