How Does Globalisation Affect The Global Economy

INTRODUCTION
Globalisation implies integration of all the economies of the world. The global economy also comprises of global financial system. Global financial crisis however, is turmoil in the world financial system caused due to some illogical reasons and mismanagement by the financial institutions. The global financial crisis basically reflects a combination of three-factors which marks the worsened situation weakening balance sheets of financial institutions, continuous fall in asset prices, weakening global growth. A worldwide period of economic difficulty experienced by markets and consumers in global financial crisis is a difficult business environment, which is unable to succeed in, since potential consumers tend to reduce their purchase
These countries are trading partners of china.
b) Credit Binge
Total debt( inculcating the corporate, federation and the houshold) surges to 250% approximately and was about 100 % points since 2008( http://www.economist.com/blogs/economist-explains/2015/03/economist-explains-8). Although, this credit powered China through global financial crisis but on the flip side has left the china with heavy repayment burden. The most disturbing event is the heavy flows of credit into the palms of real estate developers. The inventory of unsold homes in China is at record high. The real estate sector account for between 25% and 30% of china’s GDP (if upstream and downstream in industries such as Cement, Glass, Steel, Furniture and Appliances are included). Plunging housing prices will not hurt affluent Chinese who have poured their fortunes into investment properties but it will also trigger default by overleveraged real estate developers who can no longer service or repay their bank
The Indian export sector (include Textile, Garments, Automobiles) are effected due to the Chinese economic downturn. The devaluation of Chinese currency (YUAN) makes Indian exports expensive because our products would not be able to compete against the cheaper Chinese products. India’s current account deficit cause GDP ratio slowdown in exports and increase in imports of Oil, Coal and Gold. Various measures are taken by the Government of China to control the crisis. The objective of Government is to minimise damage to the real economy .Central bank has cut the interest rates and lowered the amount banks are required to keep on reserve, making it cheaper to take out loans and easier for banks to lend. Government also takes steps like boosting infrastructure and slashing