Question

Why did the financial crisis in the European Union affect the United States?

Increased immigration from Europe helped stabilize the U.S. housing market.


Americans were worried about the influx of refugees.


Trade and investments closely connected the economy of the United States with


that of the European Union


The United States had to bail out struggling nations.

Answer 1

Answer: Trade and investments closely connected the economy of the United States with that of the European Union.

Explanation: European Union and the United States are the busiest and the most collaborated economies in the world as far as bilateral foreign investments are concerned. The complementary opportunities of investments devised by both the economies in each other have been consistently replenishing and generating profits for both.

Hence, the webs of investments between both economies have now grown so complicated that if one economy suffers from a financial crisis, the other will automatically be affected by it.

Answer 2

Trade and investments closely connected the economy of the United States with that of the European Union

Step-by-step explanation:

In Globalization era, it become extremely easy for people from one country to invest their capital to businesses that operated from another country.

Which means that if one of the country experienced a financial crisis, it could also could negatively affected the other country who happens to invest a lot of capital.

European union and United States are heavily involved in such economic relationship. For example, in least year alone (2018) United states and European union has approximately around $800 Billion worth of investment between one another.