Thursday, January 15, 2015
Drop of Oil Price Is Changing Global Geopolitical Pattern
ANBOUND
One byproduct of the drop of global oil price is the change of global geopolitical pattern. ANBOUND think tank scholars believe that the economy of South America has entered a painful transformation period, which will have influences on three aspects. First, economic growth will slow down since the government reduces expenditure. Second, South America needs to find new economic growth mode after commodity boom and reviving manufacturing industry is especially important. Third, the relationship between South and North America which used to be frosty will be probably improved. Being a country which consumes a lot of energy, China must proactively deal with the different political and economic relationship after the drop of oil price.