18 mark for review in 2008, a debt crisis within the united states housing market triggered a global…

18 mark for review in 2008, a debt crisis within the united states housing market triggered a global economic crisis. which of the following best explains how this process occurred? a because the united states is a member of the world trade organization (wto), all members of the wto were equally affected by the crisis within the united states. b properties owned by american businesses and individuals experienced a sharp decrease in value throughout the world. c because the global financial system is interconnected, banks in other countries were negatively affected by the crisis in the united states. d following the debt crisis in the united states, other countries disengaged from supranational free trade agreements with the united states. e the debt crisis prompted many americans to move abroad, causing housing shortages in countries with a lower cost of living.

18 mark for review in 2008, a debt crisis within the united states housing market triggered a global economic crisis. which of the following best explains how this process occurred? a because the united states is a member of the world trade organization (wto), all members of the wto were equally affected by the crisis within the united states. b properties owned by american businesses and individuals experienced a sharp decrease in value throughout the world. c because the global financial system is interconnected, banks in other countries were negatively affected by the crisis in the united states. d following the debt crisis in the united states, other countries disengaged from supranational free trade agreements with the united states. e the debt crisis prompted many americans to move abroad, causing housing shortages in countries with a lower cost of living.

Answer

Brief Explanations:

The 2008 global - economic crisis was triggered by the U.S. housing debt crisis mainly due to the interconnectedness of the global financial system. Banks around the world had exposure to U.S. sub - prime mortgages and related financial products. When the U.S. housing market collapsed, these banks faced significant losses. Option A is incorrect as WTO membership doesn't mean equal impact. Option B is too broad about property value decrease globally. Option D is not the main cause of the global economic crisis spread. Option E is an unrelated consequence.

Answer:

C. Because the global financial system is interconnected, banks in other countries were negatively affected by the crisis in the United States.