Originally Posted by Hassan02

India's main export partners are the USA, UAE, Singapore, China and the EU. As I said earlier, global economies are extremely integrated right now and a huge recession in the USA will take down China, South Korea, Japan, Singapore etc with it. In fact, THIS HAS ALREADY HAPPENED. In the wake of 2008 recession, growth slowed in Germany, Japan, China and South Korea (they are all exporters) and thousands of manufacturers were forced to close. If, as YOU say, the American economy collapss (it won't, but lets assume it does), the results will be much much worse. Also, the demand for oil will fall, pushing down the price (same happened in 2008), hurting the Arab countries.

Originally Posted by Hassan02

Maybe you are not familiar with American politics because the Americans have made many tough decisions in the past. Just last year, when Obama needed the support of the Republicans to raise the debt ceiling, the Republicans used this as a bargaining chip to demand that the budget deficit be reduced. Many services (including education) suffered major cuts.

Originally Posted by Hassan02

Chinese exports are currently around 1900 trillion while their imports are in the neighborhood of 1700 billion dollars. Pakistan's exports to China are around 2.5 billion and imports are around 7.5 billion which means that trade with Pakistan is negligible to the Chinese. Furthermore, no investor is interested in a country that is being torn apart by terrorism and religious extremism.