Contagion Effect

Contagion Effect – a contagion effect is an adverse condition caused by a company that may affect other companies or an entire industry. An example of a contagion effect would be the improper testing of a prod duct resulting in a recall or further testing.   Contagion effects (on a broader scale) can also be a market issue. An adverse issue may spread from one country to another affecting the entire global market...  The term contagion comes from the word contagious, which means a highly transmittable disease that is capable of spreading fast, and covering a large area