CONTENT STATEMENT
22. The global economy creates interdependence so that economic circumstances in one country impact events in other countries.
CONTENT ELABORATION
Expansion of trade in the 21st century has led to a global economy characterized by interdependence. As global trade has increased, so has the economic interdependence among countries.
More than ever before, economic decisions and activities in one country have the potential to impact economies in other countries. For example, a drop in the value of stock prices in the United States will impact the American economy and the economies of countries whose investors hold American stocks. Similarly, a rise in oil consumption in Asia will have a ripple effect on the oil market worldwide and likely result in higher prices for all consumers as demand increases.
EXPECTATIONS FOR LEARNING
Explain how economic decisions and activities in one country impact economies in other countries.