Homework Help

Could a recession in the United States trigger a recession abroad?  

user profile pic

xnoe323x | Student, College Freshman | Salutatorian

Posted September 26, 2012 at 2:37 AM via web

dislike 1 like

Could a recession in the United States trigger a recession abroad?  

1 Answer | Add Yours

user profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted September 26, 2012 at 2:44 AM (Answer #1)

dislike 0 like

A recession in the United States could certainly trigger a recession abroad, just as economic problems in other countries could cause problems in the US.

The world economy is extremely globalized today.  Other countries are tied to the US economy because they depend on exporting to the US.  If demand in the US drops because of a recession, jobs connected to exporting can be lost.  There are also financial connections with people in other countries having investments in the US.  Because of all these types of connections, recessions in one country, like the US, can trigger recessions in other countries.

Join to answer this question

Join a community of thousands of dedicated teachers and students.

Join eNotes