The impact of war on global economy. - page 18.

Gyfts

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War impacts the global economy only if the war involves major countries. People may forget that wars in the Middle East have been going on for years, much longer than the Ukraine war. And those wars in the Middle East haven't been disruptive because they involve countries with small GDP's.

Quote from: EarnOnVictor on September 23, 2023, 01:44:08 PM

War will never increase the national GDP, it would rather decrease it and the level depends on the nature of the war and where it hit the country.

In rare instances it can depending on investments made post war and depending on global competition.

After WW2, the U.S. GDP grew rather quickly and they made some gains in foreign exports because half of Europe was torn to rubble during the war. As Europe was rebuilding their economies, U.S. overtook everyone else and controlled global exports.

Without WW2, I don't see the U.S. economy growing as fast as it did from the 40's to the 60's.

Bitstar_coin

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Of course, war usually has a profound and lasting effect on any economy because it affects the overall economic stability of that country. Nothing will function well because of the impact the war has caused. war brings about inflation, trade disruption, currency devaluation, an increase in government spending, and lots of infrastructural and human damage, so many refugees and IDP camps to mention a few.
Oil plays a significant role in modern warfare due to its role in energy supply, logistics, and so on but there are other resources like information, food and water, mineral and material resources, economic and financial resources that also help in determining the outcome of a conflict.

EarnOnVictor

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Quote from: 0t3p0t on September 23, 2023, 01:03:11 PM

1. Increase in the national GDP is least likely to be caused by a war.

War will never increase the national GDP, it would rather decrease it and the level depends on the nature of the war and where it hit the country.

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2. Oil is considered the most crucial resource in modern warfare.

Crude oil prices would drop during war and crisis, a good example was the Covid-19 era when the price of WTI dropped to below $0. It was only saved on the future markets.

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3. War affects the stock market by causing a decline in stock prices.

War will definitely cause uncertainty in the market, including stocks, and there would be an absence of precision but instability. So, it will surely be negative on the stocks.

MainIbem

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Normally war is a bad thing and it affects all aspect of man's life and that of their nation why because when there is war there is also economy crisis and it surely also affects the areas of your highlights. When there is war the neighboring country's enjoy the benefits of selling their ammunition and their cost prices changes over time to the higher in demand of them, including every other things in the country increases tremendously. This isn't a thing to pray for and we should try all our best to prevent and avoid war from resolute within both country's as both affected country could finds it very difficult to get back their normal ways of living because it will affect almost every other thing in the country.

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Quote from: 0t3p0t on September 23, 2023, 01:03:11 PM

1. Increase in the national GDP is least likely to be caused by a war.
2. Oil is considered the most crucial resource in modern warfare.
3. War affects the stock market by causing a decline in stock prices.

What do you guys think? Is this true or false?

I don't know what to say, but the least I can say is, that your statements are so obvious and there is no need to ask others to confirm them. Because we do have seen the above-mentioned scenarios due to the war between Russia with Ukraine. That war, has caused a great loss in GDP, Oil became expensive, stock market was also affected. And besides that, we have seen many other problems too.

The short answer is yes it is true.

royalfestus

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Quote from: 0t3p0t on September 23, 2023, 01:03:11 PM

1. Increase in the national GDP is least likely to be caused by a war.
2. Oil is considered the most crucial resource in modern warfare.
3. War affects the stock market by causing a decline in stock prices.

What do you guys think? Is this true or false?

1. Warfare represents a disruptive force that impacts all key components contributing to Gross Domestic Product: labor, capital, and land. The power supply was disrupted during the conflict in Ukraine, leading to significant disruptions in domestic production processes.

2. While oil may not be the most critical resource, there has been no viable substitute for its profound economic influence worldwide. It continues to wield substantial sway over a significant portion of the global economy.

0t3p0t

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1. Increase in the national GDP is least likely to be caused by a war.
2. Oil is considered the most crucial resource in modern warfare.
3. War affects the stock market by causing a decline in stock prices.

What do you guys think? Is this true or false?

Topic: The impact of war on global economy. - page 18. (Read 2983 times)