Global interdependence means countries that are mutually reliant on each other. This globalization affects close to every country in the world and has both negative and positive impacts. One of Iceland’s biggest economic incomes comes from its fishing. Because Iceland is an island it is able to use the vast ocean around it to fish and fund its economy. Iceland also has a very sparse population allowing for its oceans to be significantly less polluted than its European counterparts. This allows for their fish to be fresher as well as given the name of the Nordic Champion of the fishing industry (Iceland and). Iceland exports their fishing goods mainly to the Netherlands, the United Kingdom, the United States, Norway, France, and Germany. In 2000 the marine products accounted for more than 70% of Icelands’ total export earnings and in 2013 it accounted for 35% of Icelands’ total export earnings (ICELAND). The total money gained from the fish exports is $953 million.
Another thing that Iceland has that helps its economy is aluminum smelting. Aluminum smelting is when electrolysis breaks down alumina into aluminum and C02. Because Iceland uses hydroelectric power from their dams compared to other countries who use coal, it reduces CO2 emissions. Iceland only accounts for about 2% of the world aluminum smelting however many of the countries they do business with use them for aluminum smelting because of their lower CO2 emissions (Aluminium). Aluminum smelting and raw aluminum exports account for about 42% of Icelands’ total export earnings. From these exports Iceland makes about $2.45 billion.
Lastly Iceland imports most of their machinery and petroleum products from the United States, Norway, China, the Netherlands, Germany, Norway, Brazil, Denmark, and the United Kingdom. Machinery accounts for about $3.07 million and 38% of imports while refined petroleum accounts for about $823 million and 19% of imports. Overall the comparative costs for the amount of money spent on imports and the money gained from exports is fairly close. In 2013 Iceland spent about $5.01 billion on imports while they gained $5.81 billion from exports. This gives them a positive trade balance of $796 million in net exports. Most of the countries listed above can be seen in both the imports and exports. This means that many of these countries are interdependent and are able to help each others economies as well as help the countries to get the goods they need. Iceland exports about 74 products that all have comparative advantages to other countries (Iceland). This is an interesting fact because Iceland is such a small county compared to many others yet it has a big impact globally in the scheme of interdependent globalization.
Sources:
Aluminium Smelting in Iceland - Alcoa, Rio Tinto Alcan, & Century Aluminum Corp. (2012, February 15). Retrieved November 3, 2015, from https://arcticecon.wordpress.com/2012/02/15/aluminium-smelting-in-iceland-alcoa-rio-tinto-alcan-century-aluminum-corp/
ICELAND. (n.d.). Retrieved November 3, 2015, from http://www.nationsencyclopedia.com/economies/Europe/Iceland.html
Iceland. (n.d.). Retrieved November 3, 2015, from http://atlas.media.mit.edu/en/profile/country/isl/
Iceland and the United Nations. (n.d.). Retrieved November 3, 2015, from http://www.iceland.is/iceland-abroad/un/nyc/iceland-and-the-un