why are US financial markets so important to the rest of the world?

Question by LYT: why are US financial markets so important to the rest of the world?



Answer
Answer by marko2037Because of international trade. Some countries like India with economies that are beginning to boom still rely heavily on the US and EU for stability. Large American companies also provide jobs to a lot of other countries which has increased due to mass outsourcing. Think about how many things you buy in the US that say made in China, Korea, Mexico, Bangladesh. Capitalism goes hand in hand with free trade, and many countries rely on each other for everything from natural resources to workers. There is a book called The Writing On The Wall that discusses the US' economic relationship with China. Recently China has been hailed as a great new booming economy and a world superpower, but the book explains why at this point in time their marker is still very vunerable and dependent on the US.

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