Unit IV Research Paper: The Link between Globalization and Economic Crisis

Research Paper: The Link between Globalization and Economic Crisis
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Research Paper: The Link between Globalization and Economic Crisis
Outline
Globalization processes and the ensuing economic crisis have been topics of great interest among researchers today. While they are often analyzed independently, the two phenomena are closely related, which begs the questions as to their linkage. This paper seeks to argue that globalization plays a major role in orchestrating global economic crisis.
* Globalization is one of the major causes of the spread of the economic crisis around the world.
* The 2007-2008 economic crisis started in the U.S. and quickly spread to other parts of the world largely because of the process of globalization (Leiser, Benita & Bourgeois-Gironde, 2016).
* The augmented interdependence of states as well as international liberalization of trade has all contributed to the spread of the global economic crisis.
* The process of globalization has helped increase world trade as well as financial integration.
* An economic shock from one state easily spreads to other countries due to increased trade and financial integration (Tuga, 2014).
* Financial integration also results in increased frequency of economic shocks affecting virtually all economies.
* Financial liberalization and spread of technology are major drivers of economic growth.
* Globalization facilitates towards the development of financial markets, which by extension leads to the increased economic growth rate (Danner, Danner &Bavaresco, 2017).
* However, the process contributes to increased cases of negative shocks from different parts of the world and its subsequent spread to other parts (OECD, 2013).
Annotated Bibliography
Marginean, S. &Orastean, R. (2011). Globalization and economic crisis in European countries. International Journal of Economics and Finance Studies, 3(1), 1309-8055
In this qualitative study, the authors analyze the link between globalization process and the effect of economic crisis for developed European countries. The authors sought to measure economic globalization vial indexes which are based on the intensity o...