Whether we like it or not, today’s economy is a world economy. Of course, our local and national economies are very important, but so much is traded internationally now that any part of the world that is destabilized threatens the financial health of the rest of the world. This is especially true in contemporary America. International trade keeps the US economy afloat. It may not be the fastest way to get rich, but a withdrawal from foreign investments might be the fastest way to topple the stock market.
Foreign investments go both ways. America invests in other countries and other countries invest in America. Each world region has commodities that the rest of the world needs. Americans have wheat, cattle, pigs and oil that are all hot on the commodities market. South and Central America have coffee and cocoa. Africa has coffee, oil and precious metals. Chile has come to the world’s attention for it’s precious metal mining after the long ordeal of the men trapped in a collapsed gold mine. As long as history can document, countries have engaged in international trade. These activities have forged lasting friendships and started devastating wars.
Many Westerners want their troops removed from the Middle East, but until alternative energy sources can really find their footing on the stock market, we all need the oil commodity that this region of the world has. It’s in the world’s best interest to keep those countries stable to do international trade. There are also some very wealthy governments in that part of the world who are willing to invest in American stocks and markets. Although some say Saudi Arabia and China own the US, it has to be noted that we wouldn’t be worth owning with out those foreign investments.
Technology is another big international trade commodity. The South Korean, Scandinavian, Japanese and Chinese are big players in the technology trade, so foreign relations are paramount to keeping technology in America up to par. Also, as people connect internationally all commodities become a better buy as science improves everything from food production to computer production.