Economic Globalization in Cyprus

Economic Globalization in Cyprus

Introduction

This essay aims to highlight the significance of globalization as a better rescue tool in comparison to others like ECB's and EU's prescriptions. Cyprus economy has always enjoyed positive prospective for considerable years. Yet, in the most recent years it has experienced troubling times due to their pattern of dependency for the financial functionality. For Cyprus, Greece is the main country form where its majority of finances are generated. At the time of recession, many countries have lost their balance others are striving to gain balance. The essay suggests that globalization is a better option to combat recession collectively in collaboration with other countries on the basis of mutual help rule. This tool has caused the entire world come closer to each other and understands each other's nature and life style. The other solution calls for cutting down on job allocation. The imposing entities work for their own interest and aims to retrieve maximum profits in the long run (Salih, 2004).

Discussion

Recession

The most recent time is considered to be the worst in the history of bad recessions. Downsizing has affected the welfare of the countrymen. Common people are frustrated due to not complying with the lifestyle they once had. The world leaders are fabricating numerous strategies to answer in the possible way and combat recession. Yet, some countries have shaken upside down. There are many entities and legal bodies who have come forward to help the countries within their specified paradigms (like ECB, EU, IMF etc) (Rosecrance and Stein, 2006).

Banking Sector

The transmittable aftereffects of US mortgage catastrophe has casted one of the worst spell on the banking sectors worldwide. Euro-zone received some severe implications in diversified regions. In Cyprus, most of the money comes from Russia and investment in Greek bonds. The crisis occurred, and Greek became the victim of some lethal recession in which it was hard for it to survive. Consequently, Greece had to adjust its investment policies which actually resulted in unbalancing of Cyprus economy. “European Central Bank” does not have the authority to print money; the affected cycle has hit Cyprus badly. Cypriot banks lacked sufficient capital to back their losses due to Greek recession debts (Salih, 2004).

ECB and EU demanded Cypriots banks to downsize and imposed extreme rules on the execution of the banking work. This could cause double digit unemployment rate nationwide. The common man will have to suffer due to the crisis and further due to proposed remedies. ECB and EU are famous for their strict standards and keeping a close check on the execution. WE have the living examples of countries who have acquired their help to cur them out the recession. In turn, their people had to suffer the implications (Roudometof, 2001).Min Issue

The main issue in the entire phenomena is that Cyprus depended a lot on Greek economy that had indirect association with ECB and EU. Spain and Greece have already become the victims of them. Cyprus should have other connections in order to have a plan ...