As much as economists try to avoid this situation, it seems that the economic downfall of a country or domain affects the surrounding nations and market fields, as well. Initially, it was believed that a separation of each economic field would prevent financial recessions from happening as the crisis within one domain would not affect the rest of the domains. In 2008, however, a series of events came to shatter this lawyer Perth belief down by proving that a disease in the bank industry can weakened all the other industrial branches.
The instability of the two biggest currencies in the world, the dollar and the euro, has had powerful effects over the other nations that used to make business with companies in the West. Everyone expected the Japan and Chinese companies to gain popularity during the years of the economic recession and the Asian continent to become one of the main players on the market. However, it appears that American companies were their main buyers; Thus, the low buying power of the American customers has produced significant losses in the income of the Asian companies.
Europe, as we very well know it, is affected by the downfall registered in the stock market as most of the countries import oil. Currencies in Europe are connected to the Federal currency as the price of the oil is given by the US dollar. If the value of the American currency lowers, the price of gas increases and thus, the entire Europe will be affected by these growing rates. As a consequence, the increased price of the gas will determine a growth in the costs of numerous other products that are transported and delivered in stores with the help of trucks, cars and other means of transportation.
Third world countries have always had financial and economic problems and their issues seem to aggravate in the years to come. Since many of the local or multinational countries have been forced to close some of their headquarters, the rate of unemployment in third world country has gone sky-high. Consequently, many more protests are expected to take place in the following five years all over the world, especially in these underdeveloped countries.
People have the power it takes to overcome this difficult period; all they have to do is to reduce the amount of unnecessary expenditures and become aware consumers of products. Adopting an optimistic attitude will turn out to be very helpful as we can use the current economic downfall to invest in tangible products, such as, gold coins that will later on, improve our income.