To meet the domestic needs of the country need to deal with other countries. Why? Because not all countries can produce all the goods and services needed by the people. Our country did economic relations with various countries around the world. These relationships may be trading labor and capital.
The relationship can be described as follows.
a. Trade. one of the forms of cooperation with foreign countries is trade, ie exports and imports, as well as services. For example, our country's rubber export to other countries. While other countries are exporting the machines to our country. Both sides get extra income from such trading activities.
b. Labor exchanges. Society of our country are sending labor abroad. Those who work abroad provide foreign exchange for our country. In addition to the working people of our country abroad, people from other countries are also many who work in our country.
c. Source of foreign investment. Foreign investment in the country is one way to increase the prosperity of the population in a country. For our country, investments from other countries are very profitable. Our country attractive to foreign investors because the price of labor in our country is cheaper compared to other countries.
d. Lending. To carry out the development, a country requires huge funds. At the time the State is experiencing financial difficulties, the state will borrow from other countries or international financial institutions.
e. Aid. The assistance provided by people overseas are usually expressed in terms of physical development projects or service activities in cooperation with local government. The assistance given to countries that need them for free without having to return it.
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