Global Financial Crisis - Article Example

Global Financial Crisis ReviewThis article written by Shah (2013) explains more about financial crises. There are different themes coming across the reading. First, the theme of financials institution collapse is brought about in the reading. Another theme discussed in the article is the global financials crises. The theme of conflict is also highlighted as some people disagree with the main cause of the financials crises. As highlighted by the article, financials crises begun in the year 2007 and 2008 and this led to closure and collapse of many financial institutions across the world (Shah 2013).

Contribution of the Theoretical Position in the Reading to the Ongoing Foreign Policy DevelopmentThe article highlights that the financials problems are brought about by those bailed out. It also claims that the continued financial problem affect individual’s livelihood. The article further claims that financials problem could be avoided if people could have adopted the current economic models. Depending on the articles argument, financials problems have been brought about by people negligence.

States have been neglecting the economic models which can help in resolving the economy. Currently, most of the states depend on others in order to get enough supply of goods and services. Many, countries have their foreign policy which governs their relationship with other states. The lack of an international organization to bring about a general foreign policy to govern all states as led to the lack of corporation in terms of international business. Conflict exists between some states, and this makes it difficulty for the international business to take place.

Due to increasing level of transnational and globalization activities countries needs to interact and share business in term of importation and exportation of products. The article states that the problem will affect the livelihood of people in all corners of the world, and this is because people move to other states to seek employment and perform business. When one country is affected, it means that the whole world will be affected (Shah 2013). Reading PersuasionIt is true that I am persuaded by the reading in this article because I have seen it happening.

From the time to time, foreign currencies change their market status from being stable to unstable and vice versa (Shah 2013). The level of globalization has increased and without inclusion of the current economic model a country’s economy can decline. Those economic models which could have prevented financials crisis include qualitative models, stochastic and non-stochastic model. Application of those models will enable the state to carry out economic forecasting and come up with means to solve the problem involved.

I have been persuaded because if those models could be in place the financial crises could not have occurred. The article also claims that the livelihood of people will be affected, and this is true. When there are inadequate funds states will not be able to offer enough employment, health care services, and good education systems. Argument CritiqueIn criticizing this article, there are also other factors that led to financial crises. Like the American, baby boom generation affected the economy because there were many people in need of jobs, education while the American budget could not support the entire population.

Countries can also solve the financial crises on their own by increasing the number of local produces and utilizing natural resources. BibliographyShah A. 2013. Global Financial Crisis. From http://www.globalissues.org/article/768/global-financial-crisis#Acrisissoseveretheworldfinancialsystemisaffected (March 24, 2013).