Question

In: Economics

1) Why is Ukraine becoming more unstable? 2) What factors have contributed to the instability? 3)...

1) Why is Ukraine becoming more unstable?


2) What factors have contributed to the instability?


3) How would Europe's economy look like if nothing is done in Ukraine?


4) Do you believe that Ukraine could once be a regional economic powerhouse in Eastern Europe? Why or why not?

Solutions

Expert Solution

1. Why is Ukraine becoming more unstable?

The main reason that makes Ukraine is becoming unstables is the ongoing battle for territory with Russia in the southern and eastern parts of the country. According to the article, the Russian conflict is a threat against the Ukrainian infrastructure, businesses, investment and the economy. Also, the cause of the unstable is different, and relates to a poorer commitment to natural hazard risk management in the region than last year.

2. What factors have contributed to the instability?

The fall in Ukraine’s position in the index has been most marked with respect to an intensified political risk and deteriorating infrastructure: transport, telephony and energy. Follow the article, in a leading index which ranks the world's most resilient countries down to the riskiest and most vulnerable to war, natural disaster or economic crisis, Ukraine fell 31 places - the most extreme of any country - positioning it as the most unstable in Europe.

3. How would Europe's economy look like if nothing is done in Ukraine?

If nothing is done in Ukraine, the Europe’s economy will be affected with the unstable of this country and the economy of Europe will be worse. Ukraine is a member of organization EU, so an unstable member of course will affect on the whole organization, Europe’s economy. Besides that, Ukraine has a weak supply chain, it can be difficult or impossible to get the market share, revenue and reputation back. This one is also creates a negative affection on not only Ukraine but also Europe’s economy. On the article, Mr Ahnell said that a weak supply chain, easily knocked by oil shocks, natural disaster or conflict, was at the heart of the index, making some countries economically fragile and unattractive to foreign investors and multinational companies.

4. Do you believe that Ukraine could once be a regional economic powerhouse in Eastern Europe?

I believe that Ukraine could once be a regional economic powerhouse in Eastern Europe. In fact, it is really hard for Ukraine to be that position with the conditions of the country at this current time. However, if Europe give a hand to build up this country, create a stronger supply chain and Russia end up the conflict and territory in Ukraine, this country will have a chance to be regional economic powerhouse in Eastern Europe.


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