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Informative Writing
How does one country’s economy affect another country?

Maintaining a positive relationship with another country's economy is crucial since it

influences the other country's economy as well. An area of research that deals with the
production, consumption, and distribution of wealth is called economics. Many factors are
known to impact economies, but the primary ones include supplier connections, debt crises, and
synchronized financial losses.

How might a supplier relationship in one country impact another country's economy? Statistic
researchers showed that in 2021, China accounted for 30 percent of global manufacturing output,
according to the UN. This gives us the understanding that China plays an extreme role as the
largest manufacturer and exporter of goods. In addition, this tells the firm owners that if China
stops its production, it would result in a massive decrease in the drop of various of raw materials.
Therefore, it leads other countries' economies to fall since other nations rely on China for
production.

On the other hand, it also establishes a connection with a single economic debt crisis that
significantly affects the economies of other nations. Which causes a slowdown in trade and
economic growth and creates turmoil in the global financial market. Examples we could
mention: rising costs of goods and services due to inflation as a result of the government
generating cash cover budgets; increasing the level of unemployment as it reduces government
spending. Overall, this leads to enormous poverty in these countries. This implies how If a
country's debt crisis is severe enough, it impedes economic growth elsewhere in the world. Even
impacting its populations.

Furthermore, this debt defaults to links or leads to financial losses within a country and across
borders. As we all may note, trends are what keep the world or community active thus it works
similarly in the commercial sector. The fact that small countries are influenced by bigger
countries. In bigger companies like McDonald's, H&M, and Nike, there is often a financial or
wealth transfer that is highly synchronized or connected amongst them. Since it's a franchise,
they are spreading the word as they succeed, allowing other nations to benefit from the same
prosperity. Similar to this, when there is a worldwide recession, many national economies
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coordinate due to global financial systems that spread the effects of recessions and economic
shocks from one to another. Consequently, industrial production collapsed worldwide.

In conclusion, if one country's economy falls, other nations are also affected by it. In terms of
supplying products to many countries around the world, where others depend on them; the debt
crisis is causing other countries to have a hard time with inflation.
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Bullet point:
● important having a good relationship with other countries economy
● the branch of knowledge concerned with the production, consumption, and transfer of
wealth.
● factors affecting :supplier connections, debt crises, and synchronized financial losses.
● In 2021, China accounted for 30 percent of global manufacturing output, according to the
UN. By comparison, the EU in aggregate accounted for 16 percent, the U.S. 15 percent,
and Japan and Germany accounted for six percent and five percent, respectively.
● China is the world's largest manufacturing economy and exporter of goods.
● ceasing the production of all China-made goods would lead to an overwhelming drop in
all sorts of raw material.
● cause a commodities market crash which will in turn crash all financial markets and thus
cause a worldwide financial crisis that will be almost impossible to recover from.
● Link with economic debt crisis
● A debt crisis occurs when a country can't pay creditors what it owes them for the money
that the government has borrowed.
● can affect economic growth and create turmoil in global financial markets.
● Countries can experience financial losses, market turmoil, and sharp slowdowns in trade
and economic growth.
● increasing costs of food and other goods and services due to inflation as a government
prints money to support its expenditures.
● The loss of jobs and growing unemployment as companies and the government slash
their spending.
● A descent into poverty(the state of being extremely poor.) for millions of people.
● Debt defaults can hit individual citizens within a country and across borders
● financial losses -Trend very connected they synchronized
● many national economies, as trade relations and international financial systems transmit
economic shocks and the impact of recession from one country to another.
● Consequently, industrial production collapsed worldwide.

Reference:
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● Halton, C. (2009, February 4). Global recession: Meaning, history, examples.

Investopedia. https://www.investopedia.com/terms/g/global-recession.asp

● China’s next act in a changing economic order. (2023, August 14). RBC Wealth
Management - Asia. https://www.rbcwealthmanagement.com/en-asia/insights/chinas-
next-act-in-a-changing-economic-order

● TRADING ECONOMICS. (n.d.). China - Trade (% of GDP)

[https://tradingeconomics.com/china/trade-percent-of-gdp-wb-data.html#:~:text=Trade
%20(%25%20of%20GDP)%20in,Bank%20on%20October%20of%202023]

● (N.d.). Adb.org. Retrieved October 30, 2023, from

https://www.adb.org/sites/default/files/publication/156019/adbi-wp164.pdf