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The main cause of GFC is the incomplete housing bubble and financial monitoring in United States. They led to the financial crisis in the U.S from 2007 and it broke out late 2008. Through the financial system in particular and economy in general of the United States with many countries, the crisis in United States has spread many countries around the world. It leads to financial collapse, economic recession and declining economic growth in many countries around the world. Many financial institutions of developed countries in Europe participate in the housing credit market in the United States. As a result, the housing bubble bursts in the United States so, these financial institutions at risk is similar to financial institutions of the United States. The European countries were the most severe financial turmoil such as United Kingdom, Iceland, Ireland, Belgium and Spain. Beside that the major stock markets of the world in New York, London, Paris, Frankfurt and Tokyo have a large depreciation in time history. In Europe, FTSE 100 index dropped from 4789.79 to 4699.82.  DAX index on 2nd March, 2009 is only 3666.4099 compared with 8067.3198 on 27th December, 2009.  CAC index on 2nd March, 2009 was also down to the record lows of 2534.45.  Japan has a relatively stable financial system that has undergone a period of restructuring after the 1996- 1997 crisis. However, the negative impact from the United States crisis causes the stock market turmoil in Japan. Nikkei index went down to the historic lows on 8th October, 2008. 
Moreover, Global financial crisis seriously affects international trade. Many countries are now confronting high pressure in retail and so they need to decrease retail price of their products in market. The government convinces suppliers to diminish price with three main reasons. First of all, against the back ground of current financial crisis, prices of raw materials have dropped. Second, a decline in prices of energy products such as fuel means low freight and storage cost. Finally, with the decreasing fluctuation of the financial crisis wave, exchange rate will incline to be constant and rise. Because of financial crisis, consumers are suffered much by lower purchasing power of the country. It means that end consumer groups have to reduce their costs, expenses and consumption. Therefore, traders can only reduce the price of products as their best solution to encourage consumption. In addition, traders promote by encouraging consumers to buy the similar product as before with lower price. Wholesalers and retailers simultaneously deliver goods from one level to another. They are also confronting high retail impact, lower purchasing power and poor business. So, price is the only and effective method to develop business. Next, Global financial crisis leads to the capital of financial system breaks. Hence, there is not enough currency in economic system because the circulation of currency is not good. Companies do not have funds and cannot borrow from banks. These cause the fact that companies go bankrupt or slow down their trade expansion. The currencies of many countries depreciate and exchange rate has a big fluctuation. As a result, the input cost will be higher and traders need cheaper goods that can compensate the loss caused by the Global financial crisis. If a country has many imported good with lower price, the government of this country will issue more protection and trade barriers to prevent low-price products from foreign exporters, they can protect its local industry from foreign exporters and domestic or local firms are not able to recover from a crisis. Furthermore, it can avoid spread of crisis to larger scope. In conclusion, Global financial crisis brought both risks and opportunities for international trade. The risks bring firms and banks to the verge of bankruptcy while consumers can have opportunities to buy cheaper goods with good quality.
Furthermore, some companies may lose their competitive advantage due to Global financial crisis. The competitive advantage means that each nation should specialize in production of those goods for which it is relative more efficient with a lower opportunity cost and trade should take place. For example, if company A has a competitive advantage in producing cold rolled steel, but now company B take, on average, only about 3.95 man-hours to produce one ton of cold rolled steel, while at company A and other steel companies, the average is around 4.7 man-hours per ton. Moreover, the apparent efficiency could disappear in the event of wage rates increasing in many countries, and company A would lose its competitive advantage. GFC may affect Heckscher-Ohlin theorem. It means that country will export that commodity that uses intensively its relative abundant factor and import that which uses intensively its relative scarce factor. Australia - Japan trade is as an example about H-O theorem, Australian trade had shift away from other countries toward Asia from sixties and seventies  . Australia has become a leading trading partner of Japan. Australia as an exporter is ranked second as goods of import to Japan after China. However, Australia is now the third largest export market for Japan after America and China  . Because of this, Japan has had a trade deficit with Australia  . Because of the policies of Japanese government, Australia faces quotas, high tariff, trade barriers and Japanese government's subsidies in exporting agricultural products including beef, butter, and apples to Japan  . As Australia trades raw materials to Japan for large amount of export earning, the goods come back to Australia in the form of technology such as electrical goods and cars. This theory which explains this general pattern is Heckscher-Ohlin. However, Australia's export to Japan still increases in GFC period from 2006 to 2009. Australian exports were primarily destined for the ports of Japan (19%) in 2006-07  and 22.8% in 2008-09  . Australia's import from Japan declines from 10% in 2006-07  to 8.1% in 2008-09  . So, Australia has a trade surplus and Japan has a trade deficit that increases from 9% to 14.7%. In short, between two countries, Japan's exports and imports are affected by Global financial crisis and there is no impact on Australia's exports and imports. The effects of the GFC may reduce the gain from trade. So, Japanese suppliers are facing declining trade volume and investment because they do not want to produce goods at high cost while they can import low-price goods from foreign country.
As the Global financial crisis accelerates, many countries should turn to their own resources to grow their economies. The result is less interdependence between nations, less interaction and less trade between nations. Moreover, they can have some recovery of the global economy, with government's actions to assist this economic recovery such as stimulatory spending, financial institution guarantees and buyouts and assistance to industries. They can use Strategic Trade Policies which governments can concentrate on a few chosen industries. Strategic Trade Policies include tariff, quotas, and domestic and export subsidies. Conditions present include WTO agreements and regulations and existing Free Trade Agreements (FTAs), regional agreement, structure of and competition in export market and government policies of the trading partner countries. Furthermore, macroeconomic policies also help grow the whole economy, and help the nation's economy to recover from the Global financial crisis (GFC).
In conclusion, the Global financial crisis has led to economic recession in many countries. After the crisis, there are cheap products and assets around the world. It also perfect time for firms to reconstruct, merge and acquire. Those firms with their fund will improve and expand the company size and market share. Suppliers will seize opportunities to cooperate with international popular companies. They may use economies of scale to reduce cost by specializing in their product and labor and obtaining quantity discounts in the purchase of inputs. Strength of low cost will play an important role in GFC so that it is more important in future trade.