Navigating the 2007-2008 Global Financial Crisis: Causes, Consequences, and International Business Impact

Global Financial Crisis Student’s Name Institution Affiliation Instructor’s Name Course Code Date The Global Financial Crisis occurred between 2007 and 2008, causing extreme stress in the global financial markets. Many countries experience a global financial crisis at the same time where simultaneous effects include a deterioration in financial institutions, markets, and consumers. The crisis started in the United States and later spread to all other parts of the world. It undermined some of the United States’ financial system and elsewhere, affecting part of its financial system (Kotz, 2009). Many banks incurred several losses seeking refuge from the government to avoid bankruptcy. Unemployment rose to greater heights, and many advanced economies, such as the United States, went into deep recessions never experienced since the Great Depression in the 1930s. It caused a collapse in international trade and the economy's downturn around the globe. Recovery from the severe recession was slow compared to any other crisis. According to (Helleiner, 2011), various economists have associated the genesis of the 2007-2008 economic crisis with the macro environment of cheap credit before the crisis and the market and regulatory failures. However, the epicenter