Focal Area: Economic, Financial, and Political Crisis

Economic, financial, and political crises are prominent features shaping the world landscape, and they can fundamentally impact trade and investment. Indeed, FDI flows contracted about 49% in the first part of 2009 due in part to the global financial crisis. Financial and economic turmoil harm the growth and stability of U.S. trading partners, contribute to discontent and political conflict, and raise security concerns in the U.S. Likewise, given that about 80% of global terrorist attacks on Americans are on business targets, political crises have direct bearing on financial markets and investment.

Important questions that need to be asked include:

  • How do host governments' efforts to manage crises impact the location decisions of multinational corporations?

  • How do the crisis management strategies of the IMF and other multilateral organizations affect firms' investment decisions?

  • What are the effects of MNE strategies on the incidence and severity of crises?

  • What is the impact that multilateral institutions such as the IMF have on the strategies of importers, exporters, and multinational corporations during and after times of crises?

Research on crises would benefit from more inter-disciplinary inquiry. GW-CIBER takes advantage of local resources to offer presentations and workshops for scholars and practitioners in a timely way, while the insights are of greatest value.