The effect of the financial crisis on globalization

Introduction

The economic crisis made it difficult for people and the country in general to maintain their sustainability. Attempts to overcome the negative repercussions of the financial crisis prompted the government to invest in ways to boost the economy and enhance its sustainability. One of the avenues pursued to try and help the country bounce back was through trade. Since the business conducted within the country was also affected by the financial crisis, trade expanded to different regions that were either better off or had better access to the amenities needed to boost trade in the United States. Although different approaches were undertaken to try and recover from the financial crisis, the reliance on trade to boost the economy had the most impact on the emergence of economic globalization.

The best approach to resolve the financial crisis was determined to be both local and international trade. As the United States sought to boost trade within the country, there was need to look for cheaper commodities, raw materials and services (Canals, 2019). Since the financial crisis hit majority of the United States, the country had to engage with other countries to try and get affordable raw materials to manufacture products as well as import cheap products that would help boost trade in the country.

The research will try to demonstrate how importing raw materials and convenient products and services, the country also exported goods to other parts of the world. Since trade was not as lucrative in the United States during the duration of the financial crisis, the country had to look for alternatives that were in a better position financially to buy its products (Wheeler, 2008). Offloading goods that could not be purchased in the United States ensured that businesses remained afloat despite the challenges that they had to overcome during the crisis. While the efforts engaged by the United States were intended to end the financial crisis, they led to the emergence of the economic crisis as the United States sought better ways to trade with different countries.

The paper will also examine how technology developed as a result of the United States desire to trade with other countries and how this helped to overcome geographic barriers limiting the efficiency of international trade. Since some of the countries the United States traded with were not as developed, the relationship established through trade paved the way for globalization as various developments ensued from their interaction with the United States (Cuza & Tuka, 2014). The countries the United States engaged with to trade also sought out business with other regions and this opened up the world to allow for even more trade and this further fueled the spread of globalization.

Globalization has become an international phenomenon and different countries across the globe have been affected both positively and negatively by its emergence. While its emergence was caused by various factors, the financial crisis played a significant in the emergence and spread of globalization as the United States tried to recover from the consequences that hit the country during the period during and after the financial crisis (Stiglitz, 2019). Exposing the correlation between the decision made by the United States to trade with other countries and the relationship established between the regions the United States traded with will make it easier to identify the impact that the financial crisis that hit the United States led to the emergence of economic globalization.

 

References

Canals J, (2019) “Globalization after the financial crisis” Open Mind

Cuza I and Tuca S, (2014) “The relationship between globalization and the economic crisis” The             USV Annals of Economics and Public Administration

Lane R, (2019) “Financial globalization and the crisis” CEPR

Stiglitz E, (2019) “Globalization and the growth in emerging markets and the new economy”       Columbia Business School

Wheeler G, (2008) “Thoughts on globalization and the global financial crisis” The World Bank