Country Economic Situation. It is very important to know a countries economic situation
because you want to know who to trade with and/or do business with. As a country, you do
not want to go into business with a country that does not have a stable economy because
that would not be beneficial for both parties of the agreement. Take South Africa for
example. According to World Factbook, South Africa is a middle income market with an
abundant supply of natural resources, with those natural resources they can be very vital to
a different country to trade with, but if South Africa doesn’t feel as if that countries
economic situation is very good then they would not feel that it would be good to trade.
You want to know if the country that you are doing business with can economically hold
up there side of the deal.
Elements of Economy. Some of the basic elements of an a countries economy are GDP,
GDP Growth Rate, Unemployment Rate, Inflation Rate, Trade Deficit, and Debt. These are
the main categories of a countries. Gross Demand Output (GDP) is the sum of value added
by resident firms, households and government operating in an economy. The GDP growth
rate is the amount in percentage form that a countries GDP has grown over the past year or
years. The unemployment rate is the percentage of the total labor force that is unemployed
but actively seeking employment and willing to work. The inflation Rate is the rate in
which the general level of prices are and services is rising, but the purchasing power is
