1.

What are the effects of one country’s production and consumption on the global economy
(China and the world)?
China's importance in the global economy has been growing. It is one of the largest
exporters in the world and one of the most developed countries in the world. China also
receives a huge portion of foreign assistance and borrows heavily from global banking
markets. Furthermore, they have excellent technology that can help other countries to
grow and develop.

2. What are the key challenges in the global economy discussed in the interview?
One of the major worries raised in the interview about the global economy, I think, is the
financial markets, as they state that many people are discussing financial issues as a result
of stock market declines and large-scale money losses. As he previously stated, the
problem would occur if panic broke out, as it did in these
other nations, including Thailand in late 1997 and the Lehman Brothers Failure on
September 2008. If we don't have enough liquidity and the market seize up, we will have
a huge problem.
3. What should we focus on to make the global economy thrive and become more
sustainable according to Jeffrey Sachs?
He stated that we should try to boost consumption spending, but the thing is, customers
do not want to spend much money, so they are aiming to boost investment spending, as
an example, where countries need to develop infrastructures such as roads, Newport
facilities, and new power generation. He also said that, we should focus our efforts on
strengthening long-term investment infrastructures. This means to achieve long-term
savings and to become a developed country.