With the influence of globalization every country certainly can not meet all of its own needs. each country must be ready to open up with other countries to cooperate with overseas communities. Role of overseas community is what causes the circular flow of economic activity are better able to describe the economic model which conforms to reality.

In the four sectors of the economy there will be two groups of economic actors, namely the community of foreign and domestic society. On the foreign community there are households, firms, and governments. Likewise, the economic actors in the country. They interact with each other to form a system of rotation of goods and services, factors of production, and money between economic actors in domestic and foreign economic actors.

These interactions can occur at the goods market and factor markets. In the market of goods occurs the flow of goods and services in the export and import the results of production. Exports of goods and services causing no flow of foreign exchange (foreign currency) into the country. Vice versa, with imports means a foreign country to send overseas. Meanwhile, in the market of production factors are the flow of factors of production and remuneration in the form of foreign exchange flows.

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