Why is Trading with different countries so important and why did the US force japan to trade internationally even if they didn’t want to ?
In: Economics
Each nation can try to make everything that their society needs to function, but for smaller countries that is very difficult.
Russia might be a good example of a country that is largert than the US, has a population 1/4th the size of the US, and is not very diversified.
When Ukraine was part of Russia, it was the “midwest” of Russia with good soil for mass-market farms, and moderate weather. So Russia must now import grain.
Russia has unique assets, like titanium deposits, but it’s major cash export is oil to the global market, and gas to the EU.
They make a lot of vodka, but everyone else does too, so nobody “needs” the Russian vodka.
The two large entities that don’t “need” the global market are China, and also the consortium made from the US/Canada/Mexico.
The EU is a modern group, but they have focused on taking in raw materials and making high-tech products for export.
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