Economics Essay

Topics: Economics, International trade, Europe Pages: 3 (779 words) Published: January 19, 2013
Support or not support

The economic globalization of modem society has developed for 32 years since 1980’s. As its development, there is no doubt that in the economic globalization climate countries which have strong economies should support countries with financial difficulties.

The reason is that, in the world, there are three economic circles. Asian-Pacific economic circle, Eurozone (European economic circle), American economic circle. Both of them are made up of different countries in the same area. If one of the countries in the area, its economic has positive or negative effect, it will affect other countries which are in the same economic circle with it.

For example, the Eurozone debt crisis. It’s first happened in Greece. The credit of Greece government had broken down. Then the economics of Eurozone decrease. That affects the European countries such as UK, Spain. According to the BBC News (2011)” most of the UK's total trade is from the Eurozone. So the debt crisis in the EU does harm to the demand for goods and services in the UK. It may also make the weakening of the euro which would give Eurozone exporters a competitive price edge over the UK. After a long time, this could be its political isolation in Europe, so that members can make their own rules on other matters that affect UK’s business and trade without asking the UK’s government”

It shows that the credit crisis of Greece lead to the Eurozone debt crisis then the business and the economics of UK will be affected deeply by the Eurozone debt crisis. So, the UK should help the other countries which are affect by the Eurozone debt crisis , Such as Greece, Italy and Spain, so that UK can make the negative effect decrease and have less effect on itself.

If countries experiencing financial difficulties after the crisis, and without any help. That maybe will make the negative effect spread to the out of the Eurozone as The Guardian (2012) said” The Eurozone...
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