Discuss the impact of the USA's economy crisis on one or more Essay

Discuss the impact of the USA's economy crisis on one or more countries around the world. You may use USA as one country, but select at least one other - Essay Example Randall Filer, a professor of economics at Hunter College and the Graduate Center of the City University of New York, stated that the financial competitiveness of some developed countries might increase despite the US economy crisis. In Martin Savidge’s newscast, WORLDFOCUS, Randall Filer specifically named Frankfurt and London as those that might benefit from the crisis. Financial contagion is a situation in which a faltering economy in one country causes otherwise healthy economies in other countries to have problems (â€Å"Financial Contagion†). A study on the financial contagion effects of the US subprime crisis on developed countries, by Horta, Mendes and Vieira, confirmed Randal Filer’s predictions (26). They found out that the financial markets in Canada, Japan, Italy, France and the UK present significant levels of contagion; as opposed to the German and Portuguese insignificant market levels of contagion (Horta et al. 26). The findings suggest the increasing dependence towards the US market, even for developed countries. The countries of the Third World can be divided into three groups: those developing rapidly, those developing moderately, and those whose economies are not developing at all (Epping 116). Those that are rapidly developing are called Newly Industrialized Countries (NICs), which include Brazil, Argentina, Hong Kong, Israel, Mexico, Singapore, South Africa, South Korea, and Taiwan. The moderately developing nations compose the bulk of the Third World. The most populous of this group are India, China, Indonesia and Malaysia. And finally, the group that does not develop at all includes those countries found in sub-Sahara Africa. These countries have so few resources and so little money that development is almost impossible. Developing countries borrow money to build new infrastructures and industries in hopes of producing enough exports to pay back