Swiss Relations
Additionally, Liechtenstein is economically interdependent on Switzerland because they use the Swiss Franc as their national currency.
This is a positive dependency because the larger size of Switzerland allows Liechtenstein to use their currency in a wider spectrum. If Liechtenstein was to have its own currency, it would most likely not be effective because it would not be recognized across the world; therefore, limiting their purchasing power in other countries.
Once again, the small size of Liechtenstein and the fact that is a doubly-landlocked country makes it unnecessary to spend government funds on an active military. For this reason, Liechtenstein politically depends on the Swiss military to act as their protection if it becomes necessary. This benefits the country of Liechtenstein because it allows the government to allocate its funds to other aspects of the country while still having the availability of a military in the neighboring country. The only problem that could arise, though highly unlikely, would be if Switzerland and Liechtenstein were in conflict because Liechtenstein would be left undefended.
This is a positive dependency because the larger size of Switzerland allows Liechtenstein to use their currency in a wider spectrum. If Liechtenstein was to have its own currency, it would most likely not be effective because it would not be recognized across the world; therefore, limiting their purchasing power in other countries.
Once again, the small size of Liechtenstein and the fact that is a doubly-landlocked country makes it unnecessary to spend government funds on an active military. For this reason, Liechtenstein politically depends on the Swiss military to act as their protection if it becomes necessary. This benefits the country of Liechtenstein because it allows the government to allocate its funds to other aspects of the country while still having the availability of a military in the neighboring country. The only problem that could arise, though highly unlikely, would be if Switzerland and Liechtenstein were in conflict because Liechtenstein would be left undefended.
Other Foreign Relations
Liechtenstein's thriving industry depends on its ability to export products to other nations. Globalization and the reduction of trade barriers has made this possible and is vital to the success of such a small country. This economic interdependence benefits Liechtenstein as they are able to export 46% of their goods to the European Economic Area, 12% to Switzerland, and 42% to other countries including the United States. This is a positive interdependence because it has allowed the country to grow into, what many consider, the export champion of the world, resulting in Liechtenstein now being one of the richest countries in the world.
Information found on http://www.fuerstenhaus.li/en/presse/reden/dok_archiv-2006/World_Affairs_Council_San_Francisco_2006_05_30.pdf
Information found on http://www.fuerstenhaus.li/en/presse/reden/dok_archiv-2006/World_Affairs_Council_San_Francisco_2006_05_30.pdf