LWEO

chapter 1

chapter 1

The Netherlands and the world

Traditionally, the Netherlands has been strongly oriented towards foreign countries. As the Netherlands is a small country, it has to rely on foreign countries for many of its products. Still, there are also products which the Netherlands can make itself and which yet come from abroad. This is to do with costs. It is smarter to import products from other countries that can be produced more cheaply there and to apply yourself as a country to products which you can produce more cheaply yourself. We call this international division of labour. It means that each country applies itself to making the products for which it has a competitive advantage. There are a number of factors involved in this:
• natural circumstances;
• wage costs;
• the infrastructure;
• historical circumstances.
The countries of the European Union are the main trading partners of the Netherlands.

links
International trade (video 5 min.)
Why was the EU established? (video 5 min.)

glossary

Glossary chapter 1


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exercises

Exercises (Word)