How does society manage its scarce resources and benefit from economic interdependence? Explain.
Industrialization is the era of cultural - financial transition that turns a human population into an urban community from an agricultural society. It represents a major reorganization of an industry for industrial purposes.
Let's say you've just been appointed to the president's economic advisory board. You are tasked with examining America's economic interdependence and determining how to restore the economy of the United States. How will you do it? First, you must understand what economic interdependence is.
Economic interdependence is primarily a phenomenon involving a nation with an advance economy. In a nation that has multiple industries and manufacturers, such as the United States, not all companies can produce all the inputs that they need to make the products they sell.
The primary cause for economic interdependence is industrialization and the advancement of a nation's economy. First, economic interdependence occurs within the nation shortly after industrialization, as the economy advances. Then, interdependence takes place with other nations that have industries not found in the home nation.
The effect of economic interdependence can vary based upon a nation's type of economy and what that nation has to offer. It can be argued that more advanced nations have more to benefit from economic interdependence with smaller, less developed nations.