> -Right, but, besides those items, countries like South Korea also
> -depend on the external market to feed their own population. Not
> -to mention energy.
Yes. Apart from the price of petrol, the fact that the US Navy dominates sealanes in Indian ocean gives the US enormous leverage over Japan, China and Europe.
> Countries like India or Brazil, whose imports
> -are about 10-15% of GDP are much less vulnerable to sudden changes
> -in external markets (but also slower in benefiting from a booming
> -external marketing)
Yes, but I think the distinction between the internal market and external markets has been considerably eroded, given dismantling of import controls, lowering of tariffs, floating exchange rates, regional free trade blocks.
Ulhas