Interindustry Relations

Interindustry relations refer to the economic interactions and exchanges between different industries within a country’s economy. For example, the steel industry supplies materials to the automobile industry, which in turn produces cars. These relationships show how industries depend on each other for goods and services, and how they influence each other’s growth and stability. Understanding these relations helps economists analyze how changes in one industry can ripple through others, affecting overall economic performance and employment. In essence, interindustry relations map the interconnected web of production and supply that sustains the economy.