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    易之家外贸SNS社区 Tradesns foreign trade community
    当前所在页面位置: 首页 > 有问必答 > How do economic recessions affect international trade?
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    GreenBetty
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    How do economic recessions affect international trade?

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    • 发布时间:2018-10-19 15:00:38
    How do economic recessions affect international trade?
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    SongSiyu
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    Immediate impact - during a recession, investor confidence is low. Hence, there is a reduction in investment. Since developing economies form the bulk of investing destination today (55% according to a WTO report), they're the one that are most hit by a recession in terms of new investments. 

    Medium/Long term impact - During a recession, people lose jobs and reduce consumption. Consumption of firms also decrease due to lower economic activity in the economy. As a result, there is reduced demand on an aggregate level. This reduces trade of goods and commodities (at least the elastic goods). People are less likely go indulge in luxurious products and services like cars, tourism etc. During a recession.

    #1楼 2018-10-19 17:30:28 回复(0)
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