Now we see the spillover effect of US financial and economic troubles is at it's apogee. Now all the world has been dragged into US-like economic problems, because of globalization and markets' internalization. Practically, the world economy and financial system doesn't work any more on the principle of the communicating vessels; it is turned into a big unitary pot. It means that, when US economy suffers all the rest of the word will suffer and vie versa. US economy is quite big enough to direct and orientate all the rest; also its securities markets are not to be compared with other countries, so all the world needs US markets. So, when US is in economic distress it will mean that all the world will contribute to heal it. This is the biggest advantage of globalization to US economy. They do employ the most sophisticated economy, financial system and securities markets. The compensating effect from Chinese and Indian economy is not sufficient, because when it comes to raw materials, everyone buys with international prices, so even Chinese or Indian production costs will go up.

The difference is found only on the business cycle duration, which is quite different for big economies (like US, EU, China, India, etc).