Impact of the Financial Crisis on Trade & Investment

Padideh Ala'i


INTRODUCTION: It is far too soon to tell what the precise impact of the 2008 global financial crisis (GFC) will be on trade and investment. First, it will take time for the full impact of the stimulus packages and crisis-related policies to be assessed by trading partners and private entities. Second, given the global nature of the crisis, governments may initially be reluctant to challenge governmental measures taken to assist domestic industries, particularly since in 2009 all major trading nations adopted measures designed to help domestic industries at home and in export markets.