Coping Strategies

When all the pieces of the global economy work together smoothly, all the players involved benefit. In this decade, a clear pattern emerged: China became factory to the world, the U.S. became buyer to the world, and India began to become back office to the world.

But there are risks for both East and West as the strands of the global economy intertwine. As the world economy interconnects, the U.S., China and India become more vulnerable to local disruptions in each other's economies. A U.S. recession could force Chinese factories to shut down or lay off workers, most...