What are the effects of the global economy on local markets?

What are the effects of the global economy on local markets?

The global economy can significantly impact local markets through trade, investment, and economic policies. For instance, changes in international trade agreements can affect local businesses' access to foreign markets.

Can you give me an example of how a global event affected a local market?

Sure! The COVID-19 pandemic is a prime example. It disrupted supply chains globally, leading to shortages in local markets and affecting prices and availability of goods.

How do currency fluctuations impact local economies?

Currency fluctuations can affect local economies by influencing import and export prices. A weaker local currency makes imports more expensive, which can lead to inflation, while boosting exports as they become cheaper for foreign buyers.

What role do international organizations play in the global economy?

International organizations like the IMF and World Bank help stabilize the global economy by providing financial assistance, setting economic policies, and promoting trade agreements that can benefit local markets.