Things that determine the riches of a country
A country is known for its riches based on its yearly Gross Domestic Product. It is known as the amount of profits a country has made through all the economic activities in a year. Lots of things are needed to be in place to ensure a country’s yearly profit strikes the peak. Agriculture in a country has proven to be the best resource to ensure profit. Planting of crops like pepper, rubber, groundnut can help in the foreign exchange. When groundnuts are harvested, they are manufactured into groundnut oil which are purchased by other sectors. Rubber can be transformed into different products made for sale like tyres sold for cars, slippers, can make a region rich.
Exporting refined oil, petroleum can provide lots of employment for major citizens. This move helps to boost the country’s economy as more money are injected into markets by employed citizens. Refineries are built by skilled technicians, petroleum experts are given the chance to work, transporters of petroleum are not left out. A country that makes lots of products every year for sale tend to make profits which contribute to wealth accumulation. Avoiding debt is a great way to move forward with a country’s economy. Accumulate debts lead to the payment of extra interests which can cost a huge sum of money which can affect the economy when the debt is to be paid.
Some regions make money through interests through loans other states take from them. Having money without investment or savings can make you go poor. Wealth doesn’t last forever, that is why it is always advised to make investments, save for later use in case of emergency. If a region splurges on its budget without saving or investing, the state could run into losses and result into debts from other banks. Portugal was part of the richest countries when they were colonizing other countries. This country made these riches by using the help of these states to their advantage, they use their citizens for labor to produce good, services, plant crops.
The citizens of these colonized states are used for transporting the finished products. Portugal began to run into debt soon after that as they started to splurge on the nation without saving or investing for the future of the land. After colonization, Portugal authorities couldn’t use the power over citizens of the colonized state, moved away to their state in little debt. Portugal was under the European economy, this boosted them for a while before the Europeans went into debt. Out of all the regions under the European economy, Portugal was the most affected countries. Portugal ran back to farming, they are known to be the largest exporters of cereal crops like rice, wheat, barley.
Framers were provided with machinery, fertilizers, seeds at subsidized rates to improve the markets. With this development, Portugal started to rise back up from their huge losses and debts. Portugal is part of the European country, known for their riches, it is located on the southern of Europe. Instead of investing and saving resources, unnecessary spending is made.