Apart from the numerous advantages, the globalization of world economies has some grave disadvantages as well. The case in this point is ensuing Euro zone drama which has repercussions beyond the control of any policymakers. The integration of the economies had brought the nations together in the drive towards development for all concerned. But when a disaster (of any kind) strikes on a country, it does not take long for the effect to be felt elsewhere. In this world, you either swim together or drown together.

The tremors from Europe’s financial turmoil have reached the other side of the Atlantic, rattling consumers and companies alike. The consequences have been limited so far. Yet the US and Europe are so closely linked together that any showdown of chaos across the Atlantic is felt across the shores. US manufacturers of cars, solar panels, drugs, clothes and computer equipment have all reported the chain effects from Europe’s turmoil. Worries that Europe’s crisis could worsen and spread are spooking investors and consumers just as the holiday shopping season nears. Some skeptical manufacturers’ fear US consumers could cut their spending. Europe’s sputtering growth is already limiting some US companies’ profits and could further slow the economy.

The EU is the numero uno trading partner of US. Officials estimate that nearly $475 billion in goods crossed between the regions in the first nine months of 2011. 14 % of revenue for the 500 biggest US companies-roughly $1.3 trillion-comes from Europe. Wells Fargo had estimated that the US economy will grow 2.1% next year, 0.4% lower because of the financial fiasco in Europe. Goldman Sachs thinks the region’s slowdown could shave a full percentage point off US growth.

Even if the Euro zone doesn’t fall into depression phase, its perpetual turmoil is affecting US companies and consumers in several ways:

• Stock market volatility unsettle consumers and make them more cautious about spending
• US companies having off shore companies in Europe are suffering from lower sales and profits.
• Banks worldwide are decreasing lending cash to create more cushions for potentially deep losses of their holdings of Greek, Italian and other government debt. US and overseas banks are keeping about $1.57 trillion in reserves at the Federal Reserve-an increase of nearly $580 billion in the past year.
• Uncertain hostility in the Euro environment could refute corporations to spend their piles of cash to hire and invest.

The much anticipated holiday season could be the make or break point for consumers and corporations alike. After all, the customer is the king!