Question

Which statement best explains financial crises in the global economy? The global nature of the economy usually prevents the rise of financial crises. A country in a financial crisis must fix the problem on its own to protect other countries. A financial crisis in one country can quickly spread to other countries. Financial crises often last only a short time due to the global economy.

Answer 1

The correct answer is C) a financial crisis in one country can quickly spread to other countries.

The statement that best explains a financial crisis in a global economy is "a financial crisis in one country can quickly spread to other countries."

Globalization has many advantages for countries, but one of the risks that are permanent when there is a lot of dependency between global economies is that one financial crisis in one country can quickly spread to other countries. If there is a stock market crash in one country, it can immediately influence other markets of the region, even worldwide. That was the case of the financial crisis in Greece in 2010, that spread to other countries of Europe, forcing an immediate reaction in the Europen Union.

Answer 2

Answer:

A financial crisis in one country can quickly spread to other countries.