The Global Economy becomes an increasingly important concept as countries rely on one another more, not only on supply of resources, but also on demand of exported goods.

For example, as a U.S software-developer, one may drive a Toyota (a Japanese brand that is manufactured in China), wear a Zara shirt (Spanish brand made in Vietnam), and uses a HP laptop (made in Taiwan). Also, this person creates an iPhone app for people to use in Europe, China, and Latin America.

Everyone in the society is engaged in the global economy now. Therefore, the problem that occurs in any country does not only affect the local resident, but it also produces a chain of effects on many foreign economic entities. This is the exact reason why a subprime mortgage crisis led to the mega-scale global recession.

The following two articles are examples of such stories:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aMUkg_B7PG2E

http://www.bloomberg.com/apps/news?pid=20601087&sid=ah4×5Nnk0J_g&pos=2

Though Asian countries have relatively small financial industry compared to the Western world (since they rely heavily on exportation), Asian markets have been hit hardly by the shrinking of Western demand over the past two years. Thus, with global economy, every country is responsible for the global financial stability.

David Haisha Chen

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