How has the world become more economically interdependent?

Question

How has the world become more economically interdependent?

Answer 1

Yes. This has been a process that has been happening for all of human civilization. Specialization and trade. People have become more dependent on each other for more complex goods and specialized services. In only figures we would have to reach across political borders to continue to do so.

In the 20th century, it rapidly accelerated, beginning with the early development of the European Union, the GATT (General Agreement on Tariffs and Trade), the IMF (International Monetary Fund) and the WTO (World Trade Organization). Now, the world economy is becoming more and more integrated, and the European Union, along with other trading blocs are creating more regional integration.

The pencil has become the model for integration. The paint, metal, graphite, rubber, mining equipment, wood, manufacturing, shipping, distribution and packaging are all highly complex operations, yet, they get done, involving god know how many individual businesses in so many continents. yet, it costs roughly 12 cents American. It really is an economic miracle.

Answer 2

If the Chinese didn't buy the bonds the US Govt floats to cover its budget deficit, the Government would actually have to start cutting spending to pay the bills. Instead, they just saddle future generations with the debt.

But we depend on foreigners to cover our deficit. Without their reinvestment of cash, America would be broke. I'd call that pretty dependent.