Does Foreign Policy Determine the Economy?

Both play significant roles in determining a country's domestic and foreign policies and impact international relations.


Foreign policy and the economy are significant factors that influence each other. While foreign policy encompasses the strategies and policies that guide a country's relations with other nations, the economy refers to the production of goods and services, trade, investment, employment, and income distribution within a country. Foreign policy decisions can shape economic relationships, and economic policies can also have an impact on foreign policy.

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