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What major impacts does the US economy have on the economy of other countries?
By Rose | October 23, 2008
mr. toothpick asked:
I know the drop in our economy DOES impact other countries. For instance, if our economy drops we stop importing as many things from other countries as well as investing in many of the global markets.
But, other than these impacts, how does the US affect other countries? And on what scale?
No, this is not for school. Merely a question by a curious college student.
Charles
I know the drop in our economy DOES impact other countries. For instance, if our economy drops we stop importing as many things from other countries as well as investing in many of the global markets.
But, other than these impacts, how does the US affect other countries? And on what scale?
No, this is not for school. Merely a question by a curious college student.
Charles
Topics: US Economy | 1 Comment »
October 26th, 2008 at 2:07 pm
In a few words, when a crisis is on in the USA, domestic economy needs more capital to survive. International companies have to cover their losses selling some assets or some part of the company abroad. The first assets sold are those which are far from the country, companies overseas or international financial assets. This selling orders affects the domestic economies of that third countries because most times assets are linked to exports, employment, development policies or goverment expenditure.
Sometimes they simply close companies abroad and return to the United States. They don´t stop investing they stop being present in some countries leaving projects, markets and people behind.