Explain how a countries production and consumption levels affects that countries trade with the rest of the world.

The production levels and the consumption levels of a country have an interrelated relationship with the economy of the country.

Explanation:

In a sense there are only consumer economies and there are production economies. The consumer economies are those that take up and buy more than they produce and the producing economies are those that make products for sale.

This is usually an interconnected phenomenon.

Some countries are only consumers of some products while they also produce and consume another product. Thus the interplay between these two determines their trade outside,

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