Courses : Intermediate Microeconomics Lecturer : Frischa Adellia Semester : 4th Semester, 2022/2023 Sesion Global Economic Impact Global economic impact refers to the economic effects that occur worldwide as a result of events in a particular country or region. Global economic events can impact economic growth, inflation, exchange rates, and financial stability around the world. One example of the impact of the global economy is the global financial crisis that started in 2008 in the United States. This crisis was caused by a property bubble that burst and triggered the collapse of the global financial system. The impact of this crisis spread throughout the world and resulted in recessions in many countries, as well as affecting stock markets, exchange rates and investments around the world. Events such as international trade conflicts, political crises and global pandemics can also impact the global economy. For example, the COVID-19 pandemic that started in early 2020 has disrupted economic activity around the world, including slowing international trade, reducing consumer demand and triggering recessions in many countries. The impact of the global economy can also affect a country's economy through international trade relations. If a country depends on exports for its economic growth, changes in global demand for those products can significantly affect the health of that country's economy. In order to address the impact of the global economy, it is important for countries around the world to work together to manage risk and take the necessary actions to strengthen the global financial system and promote sustainable economic growth. Global economic impacts can significantly affect the economy of a country or region. Some examples of global economic impacts are: 1. International trade: International trade allows a country to expand its markets and gain access to resources that are not available domestically. However, changes in global trade policies can affect a country's exports and imports, thereby affecting the national economy. 2. Foreign investment: Foreign investment can provide the necessary financial resources for national economic development. However, fluctuations in global financial markets can impact currency exchange rates, share prices and interest rates, which in turn can affect foreign investment. 3. Global financial crises: Global financial crises, such as the Asian financial crisis in 1997 and the global financial crisis in 2008, can spread quickly to other countries and impact global financial markets as a whole. This can result in significant economic and financial instability in many countries. 4. Global environmental and energy policies: Global environmental and energy policies can affect the energy industry and markets around the world. Some examples of these global policies are the Paris agreement on climate change and global policies on the use of renewable energy. Policy changes like these can impact industry and employment in many countries. 5. Global technologies: Global technologies, such as the internet and e-commerce, have enabled companies to expand their global markets and access customers worldwide. However, technology can also impact jobs and industries around the world, depending on where it is developed and applied. Global economic impacts can be very significant and complex, and can affect many aspects of economic and social life in many countries. Therefore, it is important to understand these impacts and adapt to changes in the global economy. The impact of the global economy can be felt in various aspects of a country's economy, both positively and negatively. Some common global economic impacts include: 1. International trade: The most pronounced global economic impact is in the field of international trade. Countries can trade with each other to meet their economic needs. In this case, the existence of a global market can enable more efficient trade and have a positive impact on economic growth. 2. Foreign investment: Another impact of globalization is the significant flow of foreign investment between countries. This foreign investment can provide benefits to recipient countries, such as increased employment, technology transfer, and increased income. However, on the other hand, foreign investment can also have negative impacts, such as an imbalance in the balance of payments and dependence on foreign investors. 3. Movement of capital and finance: The impact of the global economy can also be seen in the movement of capital and finance between countries. This can have a positive or negative impact depending on the economic conditions of each country. High capital and financial movements can provide big benefits for a country, but on the other hand it can also have an impact on economic instability. 4. Foreign policy influence: A country's foreign policy can have a significant impact on the global economy. A country's trade, political and investment policies can affect economic cooperation between countries as well as investment and international trade. 5. Increasing competition: In the context of globalization, competition between countries in terms of trade and investment is becoming increasingly stringent. This increase in competition can have positive impacts, such as increased production quality and efficiency, but can also have negative impacts, especially in countries that are less able to compete. 6. Increasing access to information: Globalization also has a positive impact in the form of increasing access to information between countries which allows for a faster exchange of ideas and innovations. This can have a positive impact on economic development, especially in the technology and research sectors. It should be remembered that the global economic impact may vary in each country depending on the economic, social, political and cultural conditions of each country. Therefore, each country needs to carry out an analysis of the impact of the global economy by considering the factors that affect its economy.