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Large nations
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Economic security of large nations, like the United States and Russia, can be maintained, which means their smaller dependence on world markets. Nowadays these large nations are provided with such economic fundamentals as natural resources, good agricultural land, and effective manufacturing enterprises relatively well, although in future gas, oil mineral resources will be exhausted and these nations will have to export them.
Self-sufficiency can be ensured by the government policies of large nations but it is impossible for more dependent nations. Self-sufficiency may be achieved by various policies in accordance with particular economic characteristics of each nation. Although large and rich nations are less self-sufficient today than they were 30 years ago, they are still able to rely mainly on their domestic resources and production for national prosperity.
The USA is an example of a country with a free market economy and strong economic fundamentals. It is also known as an economy of free enterprise1. American government (usually called the US administration) does not participate directly in foreign trade but it often uses protective tariffs to support domestic producers.
However, with its large territory which includes about 6 percent of the land surface of the earth, the United States has always been more interested in the development of domestic market. More than 90 percent of the nation’s total trade has recently been done on its territory. Thus, the United States has sought to maintain its economic security through a policy of protection that has restrained trade with other nations in favour of2 a domestic market where industry and agriculture have been free to develop and expand to meet domestic demand.
At present a variety of policies are being followed by different countries in the world economy. However, all these policies are being used in order to provide a certain degree of economic security for a nation.
On the one hand, the economic security of any nation is based on economic nationalism recognized as the only practical economic way of life in the modern world. On the other hand, various conflicts can be caused if a nation follows policies of restraints in trade which prevent the growth of world economic well-being.
Date: 2015-10-19; view: 927; Нарушение авторских прав