Globalization has expanded market contagion from "summary" of Why Stock Markets Crash by Didier Sornette
Globalization, the process by which economies, cultures, and societies have become interconnected on a global scale, has played a significant role in expanding market contagion. In the interconnected world of today, financial markets are more interdependent than ever before. This means that events in one market can quickly spread to others, leading to a domino effect that can cause widespread market crashes. The ease of communication and transportation in the era of globalization has made it simpler for information, both good and bad, to travel across borders at lightning speed. A small event in one market can now quickly trigger panic selling in other markets, as investors around the world react to the same information simultaneously. This interconnectedness has created what...
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