Global Economy
Define the Global Economy
The global economy refers to the interconnected worldwide economic activities that take place between multiple countries
What causes countries to fall into sovereign debt? Use critical thinking
Political instability, economic stagnation, financial mismanagement
In what ways does the sovereign debt crisis in the Global South worsen other global issues? Give an example
The debt crisis stops the Global South from positively participating in the global economy. Overwhelming foreign debt furthers the digital divide, climate change, climate-induced displacement, and food insecurity
Explain the impact of globalization on the global economy, and give an example
Globalization has increased the interdependence of world economies and changed the way the global economy functions by expanding trade, opening supply chains, and widening access to natural resources and labor markets
Why are countries more likely to default as a result of sovereign debt?
Countries often borrow money in a foreign currency, and must pay the creditor back in the foreign currency. This means the debtor is at the mercy of the foreign currency's changing interest rates, so they do not have control over the currency that they are using
Identify one country in the Global South that suffers from sovereign debt and explain its impacts
Haiti, Nigeria, Egypt