Financial Crisis And Its Effects On The Economy Essay

Financial Crisis And Its Effects On The Economy Essay

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Every country has its ups and downs, unfortunately, countries having to deal with financial problems which tend to cause a tremendous effect on the nation as a whole. Financial crisis plays a huge role in countries going into a recession, and being unable to meet the demand for money. Sadly, developing countries are facing financial crisis the hardest, for example, countries such as Haiti, South Africa, and Afghanistan are just some of the countries who have trouble with financial issues for decades. Furthermore, developing countries are more than likely to face financial crisis due to not making enough trades, which depends on the amount of income that comes in and out of countries. Today, financial crisis has gotten worse in many developing countries. In order for developing countries to prosper from the financial crisis, globally, each country would need to make multiple donations or fundraiser to help out each developing country. Therefore, this paper will be reviewing what is the cause of developing countries to go through the financial crisis, the different type of effects financial crisis has on citizens, which country is being effect the most behind the financial crisis and what should be done to get developing countries back financially stable.
Financial crisis is a terrible phase a country could ever go through. Due to developing countries not being able to make any trades, countries then begin to see a dramatic change in the economy. The article “The Financial and Economic Crisis and Developing Countries” by Bruno Gurtner, explained the main causes of why developing countries are still going through the financial crisis phase. Bruno Gurtner simply states, “the crisis was transmitted primarily by trade and financial fl...

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...g panics, and many recessions coincided mutually with these panics. The only two reasons why developing countries go through financial crisis is either they don’t make enough trades with other countries or their government does not know how to manage the money right. The financial crisis does not just effects developing countries economically, but the financial crisis effects each country citizens physically and emotionally. In contrast, due to developing countries having such a low funding in their economy, leaving citizens with no other choice but to live in poverty. Therefore, seeing what developing countries goes through, solutions to help developing countries overcome the financial crisis should go into effect as soon as possible. It is important for the world to be financially stable as a whole, being globally stable leaves everyone to feel financially safe.

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