Global Financial Crisis (1 Viewer)

[M@ster P]

Hi guys I got a homework task that asks me to Analyse the likely impact of the Global Financial Crisis on two countries other than Australia, can someone tell me exactly what the question is asking me? like is it asking me how the global crisis has already affected the two countries or the future effects? Also which two countries are best to show the effects of the Crisis?

Thanks


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[z600]

Analyse means identify components and relationships and draw out implications. So basically the question is asking you how the crisis has effected 2 different countries and its likely impact on the economy. You should discuss how the crisis is effecting your two economies and what will that lead to in the future (e.g deflation etc). The two countries I would pick is US (For obvious reasons, it would be good if you discussed the implication of Ford, GM and DC shutting down), and the other I would discuss is China (but info is hard to find) due to alot of points that can be discussed. If you are not comfortable with China try the EU or Japan.

 

[kaitlynm]

Hey its asking you to analyse the likely impact so the future possible impacts on the two countries. You could do countries like Iceland, the US, UK, Germany, Japan, any country thats plays a large role in the global economy (these ones listed are all in recession so you could talk about that). You can get heaps of infomration from newspapers- everyones trying to predict the impacts of the financial crisis at the moment.

Hope that helps

 

[M@ster P]

ok thanks guys

 

[munchiecrunchie]

Hi guys I got a homework task that asks me to Analyse the likely impact of the Global Financial Crisis on two countries other than Australia, can someone tell me exactly what the question is asking me? like is it asking me how the global crisis has already affected the two countries or the future effects? Also which two countries are best to show the effects of the Crisis?

Thanks


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Your homework task is quite broad; you're looking at ANY likely impact on 2 countries, so you should really be looking at BOTH impacts that have already occurred and those that are likely to occur in the future.

Since you have a choice of 2 countries, if I were you I'd try and choose 2 very different countries to show a differing kind of impact on both. The obvious first choice would be the USA. Since the global financial crisis originated here, you'd be looking at direct impacts on things such as economic activity, unemployment, inflation rates, productivity, business confidence, etc. You'd also want to mention capital flight.
The other country I'd choose would be one that is heavily involved in the globalisation process eg China, India, Singapore etc. These countries experience flow on effects (as opposed to the direct effects of the USA) ie financial contagion, which will then impact on areas of their country eg export revenue, FDI inflows, inflation, unemployment, etc. You'd basically be trying to show that involvement in the globalisation process has made them suseptible to these financial shocks.

You should read newspapers/online articles to look at the effects that have already unfolded. Then, use your knowledge of economic theory to then explain what is likely to occur in the future.

 

[M@ster P]

that was great help munchie

 

[gurmies]

I would choose two different countries as well. One highly US linked economy, and one more south-east asia oriented economy.

 

[M@ster P]

any other comments are welcome

 

[gnrlies]

Consider looking at iceland.... (thats iceland not ireland)

Although you may not consider looking at iceland for your HSC exam, it is definately a good case study to do for the financial crisis