Economics Made Easy

Answer and questions:

1. Why do countries trade?

Trade/international is very important for the countries economic! E.g. if Denmark need something, which don't have or can produce, we can buy it from a country, which have it, and we can sell some of our products to them – so it's a kind of a circle.

That's also called globalization. Like the global finance crises, it happened all over the world, because we are so connected. Big companies and small families are affected by it. Banks and businesses filing for bankruptcy and must close, while in small families may lose money on housing, savings in various costs and the bank will no longer borrow money to customers. Yes, financial crisis exposes all of its long arms. It all hangs together in one big vicious circle that is hard to get out of! Consumers / buyers do not buy nearly as much as before because people have become aware that we must keep their money, the result of that is that companies shall no longer produce as much as before and it means they lose money, so they need to fire employers. Therefore, all fear when they are talking about redundancies at their workplace. And so it is running ...

2. Give examples of goods that Denmark import

Denmark is imports a lot technology e.g. because it's cheapest to produce in China, India for example. We also import food like fruit, which can't grow here in Denmark mostly we import it from countries like Brazil, Spain, Chile and so on. Stuff like toy and clothes is also a big part of our import!

3. Give examples of goods that Denmark exports

Denmark is leading supplier of windmills, so we export a lot of them every year to other countries. We also export things like meet – from cows, pigs and chickens. The big company Arla exports also a lot of goods to other countries like milk, cheese, butter and other milk-products.

4. In