What are the three mechanisms that transmit recessions and expansions from one country to another?

Question

Quizplus · Accepted Answer

International trade, international investment, and international finance are the three mechanisms that transmit recessions and expansions from one country to another. The interconnectedness of economies through these mechanisms means that shocks in one country can have ripple effects across the global economy. For example, a recession in one country can weaken demand for imports, which can hurt exporting countries, leading to a contraction in their own economies. Similarly, financial shocks in one country can spread quickly to other countries that are linked through investment and finance channels.

What Are the Three Mechanisms That Transmit Recessions and Expansions