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An Exploratory Study of the Interrelationships among Global Stock Indices

James Kelley, Ann D. Rensel, and Tenpao Lee

The BRC Journal of Advances in Business

Volume 1

Number 1

Print ISSN: 2152-8616 Online ISSN: 2152-8667

Date: March 15, 2010

First Page 29

Last Page 42

Abstract

The advances in communication and transport technologies have led to increasing interdependence among countries resulting in a swell of trade and investment among countries. The resulting interrelationships among the economies have encouraged economic growth and formation of trade relations among partners. However for economies to be successful, these countries now need to adopt policies to develop and sustain the relationships that are based upon the trade of goods and services. In this study, we examine the effects of these interrelationships on the U.S. economy by exploring both the impact of the world’s top economies as well as the impact of the economies of geographical neighbors on the U.S. economy as evidences by the stock indices.

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