Question

How does poverty in one nation have an impact beyond that nation

Answer 1

The poverty of the inhabitants of a country has a primary impact in the country itself and also a secondary impact in other countries, especially those that are geographically closer and those that have a greater commercial relationship.

As a country has lower purchasing power, it will decrease the imports of goods and services offered by other countries.

Inhabitants of poorer countries tend to migrate to countries with higher incomes and consequently greater opportunities. This is why demographic changes can occur in both nations.

When a nation's economy occurs unexpectedly it can affect financial assets of countries that have particularities in common with it because financial markets often interpret that shared variables will also be a common cause of decline for them.