An example will be helpful in explaining the contagion and interdependence of countries. Let us take the 2008 financial crisis. Home financiers started lending to borrowers without conducting a proper creditworthiness check in America. Though more houses were being bought, the inherent default risk of such accounts was high. But this was neglected by credit rating companies while analyzing investments backed by these loans, to ‘protect relations’ with these finance companies. False ratings encouraged investors to invest in securities backed by these loans. Number of investments were built on such a false asset. And the most feared scenario took place. Home owners couldn’t pay their dues on time. What was once considered to be a safe investment by people, investment banks and pension funds betting on such mortgage backed securities, lost millions. This situation also lead to bankruptcy of the famous Lehman Brothers, one of the largest financial institutions in the United States. People lost wealth, credit became expensive, companies (including their foreign branches) were shut down and many lost jobs. With the economy in a slump, imports reduced and also affected the countries that exported goods and services to America. The collapse of a superpower country like the US resulted in highly volatile interest rates globally. Investor confidence tanked, and the financial markets went downhill, across the world. Look how a miniscule unethical practice like this can present a recession like situation to the world. It took more than 2 years to recover from an economic fracture like this.