Table of Contents
Economic Relations: Benefits
Limitations:
Afghanistan, Bangladesh or Ethopia is just one example
Economic relations is the interaction between different countries in terms of their economy and its effect on the global economy
Economic relations between countries are largely determined by the impact of government restrictions on production, distribution and consumption.
India, even though it was a British Colony for 200 years, maintained a strong economic relationship with UK. India-British economic relations have undergone significant changes since colonial days. At present, the United Kingdom is ranked fifth in India’s list of trading partners. India’s largest export to UK includes tea, metal goods, leather products etc.
WTO worked with a number of countries in order to achieve a better economy and lower trade barriers. It also developed many new programs and policies to improve economic relationships among nations.
Economic Relations: Benefits
Access to goods not available elsewhere is possible through economic relationships
Economic relations can help reduce fluctuations in sales of a company
Consumers will benefit from lower prices as a result of economic relations.
As prices increase, companies can become more effective.
Economic relations allow countries to specialize in areas where they have the most resources.
Limitations:
Losers include countries which purchase primary goods but sell manufactured goods as a return.
Foreign trade can deplete natural resources, such as coal or oil. These are irreplaceable.
Health of China is ruined because of imports such as opium and other harmful drugs.
By establishing economic relations, the economic problems of a country are spread to other countries
Trade rivalry can lead to conflict and friction
What are BRICS, TRIADS and LDCs?
Triads is a term used to describe the three major countries that dominate the global economy: the USA, EU, and Japan. The USA, Europe, and Japan are the three countries that dominate the world’s economy. The product would be shipped to other countries after being sold on these world markets.
Take an example to better understand BRICS
Consider, for example a mechanic who earns a living.
Imagine he moved to another city looking for work. He discovers that the company “ramMechanics Ltd” is very well known in this city.
It is difficult for him to find a job because the majority of work is performed by this company. Over time, he discovers that many people were similarly affected by the large company.
This problem was solved by a small group of mechanics. I would say that there were around five. The mechanics joined forces in order to share information and work. This team eventually became a group that shared information about available work. By forming alliances, they were able to escape the large company and increase their chances of survival.
In the following examples, BRICS is the lone mechanic who has joined hands with the USA to develop and improve their opportunities.
BRICS, or the combined economy of Brazil, Russia India China and South Africa is known as BRICS.
BRICS was born at a meeting of the foreign ministers between brazil, Russia, China and India. It was officially established in 2009.
The three main reasons for their formation
The US Supreme Court is under challenge
The IMF and the World Bank are not the only options.
Self-managed organization for the implementation of economic and development plans in member countries, without relying on external agencies.
A country in the early stages of development is an LDC. It is characterized by a rapid population growth and a low level wealth or industry. Majority of its citizens are involved in agriculture
LDC countries have a lower HDI ranking, a lower literacy rate, & lowered GDP. Their infrastructure is typically underdeveloped.
Afghanistan, Bangladesh, and Ethopia are just a few examples. Spain, France and the UK are also powerful allies. The USA is the largest trading partner for bangladesh, with 18% of exports going to US
China is ranked third in the list of most powerful countries. After adopting fiscal and liberal policies. Today, one cannot live without chinese products. Bangladesh-China trade has been growing steadily in recent years.
Bangladesh has the fastest-growing economy among LDCs. Bangladesh opened the country to international trade back in 1991. Bangladesh has maintained a good relationship with both the largest economies in the world.
