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Important current events comes to international economy - Essay Example

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It mainly shows the relationship that exists among consumers, suppliers and even governments. The main aim of international trade is to show the impact of…
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Important current events comes to international economy
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Important current events comes to international economy

Download file to see previous pages... For instance the United States was experiencing economic recession where the dollar lost value and this shook the economy as a whole. Life became expensive for Americans and businesses were greatly affected. This economic recession also affected the relations between the United States and other countries. William & Wayne (345) state that the Europe and the United States are very good partners hence a change in either the dollar and the Euro affects both countries. This is mainly because the two currencies are correlated hence a drop in value of either currencies will affect the other.
The overall fall in the value of the dollar is also blamed on the political decisions that have been made. Political instability in the United States was mainly caused by the difference in political ideologies between the Democrats and the republicans. Racial discriminations was also to blame for the political unrest that led to the overall fall in the dollar. William & Wayne (267) point out that the large economies are interdependent. For this reason countries should be careful and ensure that the economic is stable enough to attract investors. A lot of investors pulled out from the United States and Europe because of the fluctuations in currencies. For instance China decided to invest in Africa to minimize their losses as the African economy was not affected by the fall in the dollar as Africa is a magical economy (William & Wayne, 209).
Local Industries were greatly affected by this recession as America and Europe had to borrow to sustain its economy and this put them into debt. William & Wayne (459) outline that the United States mainly deals with agricultural products hence it feeds other counties such as Japan among others. On the other hand, Japan is made up of the manufacturing industry this shows that that one country cannot do without the other. In this case the fall in the dollar greatly affected the Japanese Yen. It is therefore important for all economies to ...Download file to see next pagesRead More
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