The roots of the current Global economic crisis can be linked back to the US subprime mortgage fiasco however, its effects are boundless. The interconnectedness of today’s economies is due to the role of multinational corporations like GM and Ford who view the world as their market place. They have historically had a comparative advantage in the auto-producing industry and the failure of these two firms would surely devastate consumers world wide. Functioning as the antithesis of subprime mortgages, a reinvigorated auto industry would help raise the entire world’s economic standpoint.

President Bush views a FTA with Colombia as a way of bringing about economic stability. President Bush is looking to continue the movement of Neoliberal ideas throughout the world. The FTA with Colombia would eliminate trade barriers and allow for the market to determine which products will be exported and imported. Multinational corporations such as GM and Ford will likely export cheaper and higher quality cars to Colombia, while the US will likely import cheaper agricultural products. An FTA would serve to strengthen all business between the US and Colombia without direct government interference. The increase in trade between both nations will lead to higher GDP levels. The increase in productivity in both countries will spread to other industries as well as other Countries through trade.

The first meeting between President Bush and President-elect Obama showed both the similarities and differences between the two. President Bush continues to look upon Neoliberal polices as the answer to global economics. By getting congress to pass the FTA with Colombia, President Bush looks to aid both countries through there respective advantages. To Neoliberals, the free market reins supreme, and government interference will only disrupt the markets natural reactions. Meanwhile, President-elect Obama looks at directly aiding multinational corporations through government actions. By aiding these large corporations, a key sector of the global economy, they will be able to continue to produce their goods. The success of one sector will spill down to other sectors and members of the global economy due to the success of multinational corporations. Multinational have created a high level of interconnectedness between countries. President-elect Obama has a more traditionally liberal perspective of the world, where the State remains supreme, but international actors such as Multinational corporations play a large role. In the end, both these men are focusing on how best to end the Global economic crisis.