Globalisation Essay Example | Topics and Well Written Essays - 1500 words - 6

Globalisation - Essay Example From 1979 onwards, all countries’ financial spectrum transformed with capital controls deregulating and witnessing of new financial elements such as derivatives. Economic activities intensified in Greece when the government resolved to fund Small and Medium Enterprises years before the economic crisis of 2008. Businesses boomed and social as well as political atmosphere transformed paving way for greater opportunities. However, this came to a halt when the entire planet submerged in an ocean of financial crisis in 2008 (Mceachern, 2012:63). This paper will seek to outline the way in which recent financial crisis of 2008 and subsequent recession has affected Greece. This will be realized by exploring Greece’s economic, political, and socioeconomic consequences as a case study country. A country case study provides an analysis of the country’s modern or contemporary developments. The 2008 financial crisis and its subsequent recession meant many things to almost every country especially the US, Greece, Ireland, Portugal, and Spain (Mceachern, 2012:26). However, the hardest hit nation was Greece where the country had to resolve to borrowing from international money lending institutions such as the IMF. Due to financial crisis, conditions in the financial markets changed where banks relaxed in interbank lending or purchase of any government debt otherwise known as bonds. Due to this situation, financial analysts and policy makers speculated presence of financial pressures within peripheral economies since such economies had accumulated huge deficits within their government spending (OECD Publishing, 2010:51). With increased deficits on Greece’s government spending, the country started experiencing increased debt levels. With this respect, it is agreeabl e that the recent financial crisis of 2008 and subsequent recession affected Greece by skyrocketing its government spending. This in turn