International financial flows changed in meaningful ways, and these changes were brought to the attention of policy makers by the Asian financial crisis. Describe three changes
What will be an ideal response?
First, international financial flows were dramatically greater than in prior decades. Second, many developing countries became active participants in international finance in a meaningful way. Finally, more so than in the past, contagion effects can instantaneously spread a crisis from one area to another.
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Investment spending will increase when
A) the interest rate rises. B) the corporate income tax increases. C) firms become more pessimistic about earning future profits. D) business cash flow increases.
Linda fishes for mahi mahi at a cost of $10 per ton, while Tessa fishes at a cost of $8 per ton. Both have one 1000 ITQ and the current market price is $13 per ton. If Linda sold her ITQ to Tessa for $3000, she and Tessa would:
A. Make the sale because they're both better off B. Not make the sale because Linda is better off and Tessa is not C. Not make the sale because Tessa is better of and Linda is not D. Not make the sale because neither is better off