What is economic interdependence?
Economic interdependence is a system in which one side depends on other parties to gain sources such as food and minerals, for comfort or everyday life. This system usually affects many layers of society, including countries and regions, people and businesses. One of the reasons for economic interdependence is specialization because most people in society will not be able to obtain resources without specialized knowledge and equipment. The main problem with the economic interdependence is that if one party fails to obtain resources, the other parties suffer. For example, in the agricultural economy, most people can produce their own food and depend on the ground, not on each other; With the interdependence, most people are unable to grow food and are dependent on farmers, food and other subjections to give them food. The work is divided by the mosliders of the TRAFT TO PROVIDE SERVICES OR SOURCES FOR OTHER ENTRIANTS, but people rarely work to deliver directly to a specific servicebo source.
Company with economic interdependence usually experience this interdependence on many levels. People are dependent on other people and businesses to give them the necessary resources. Businesses depend on other businesses and sometimes other countries and regions to create a product or gain resources. Whole countries and regions may be dependent on other countries and regions to give them resources. Some entities in this company may be independent, but most of them are not.
The main reason for economic interdependence is specialization. For example, if the company specializes in the production of gold jewelry, the company can usually not get gold itself. Instead, it depends on the people - miners and other Fireses - to win gold, needs to complete the product. This is beneficial for business because even if it needs the existence of other entities, the business can focusRather, specializing in a service or product rather than having to cope and quickly manage many services to meet the needs of its main service or product.
The problem of economic interdependence is that each entity is entirely dependent on different entities. If one entity fails to obtain resources, then the other entities will not be able to complete their services or product. If a company cannot obtain a necessary source such as food, it can cause people's starvation; At best, such a failure can easily lead to inconveniences such as lack of new jewelry.