...liberalization became a top priority. Whereas previous governments had pushed for the liberalisation of Japan, one of Clintons main foreign policy objectives was the liberalisation of the Asian economies. This process was pushed forth in Asia with such vehemence because the region held a lot of investment opportunities for American Banks, Brokerages, and other financial sector businesses. Unfortunately, Asia�s economies were not structurally ready to deal with the influx of capital that was headed their way. They had weak banking and legal systems that were unable, or unwilling, to regulate the flow of foreign capital in the country. The Americans eventually persuaded Koreato relax its capital flow regulations by giving it the option of joining the Organisation for Economic Co-operation and Development. Even then, Korea was concerned that its financial institutions may not be able to deal with an influx of foreign capital. One fatal mistake that Korea, as well as other Southeast Asian countries made, was that they opened their capital markets in the wrong way. They did not allow long term investments in Korean companies, but rather, only short-term investments that could be removed easily. One example of the sort of quick investments that were being made in Asia can be seen in the Japanese. In Japan the interest rates were very low, so investors would borrow at 2 percent and then convert their currency into Thai baht. Due to the interest rate differential, they were able to make a lot of...
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...the controversial roles of IMF in East Asia Financial Crisis Introduction Now and then, nation to nation, financial crises are inevitable: Mexico in 1994, the whole East Asia region in 1997, Brazil in 1999, and the most recently Argentina in 2001. Looking back to the victims of such financial crises, we found that most of them are labeled as the developing countries, whose financial sectors were still weak at that time yet were impetuously exposed to the advocated ‘Liberal financial market’ which was supported by the Neoclassical Liberalism social economists. Among all these financial crises, the financial storm in East Asia, starting from the year of 1997, wreaked beyond doubt the greatest havoc on the Asia and the world economy as a whole, dragging down the ‘Asian tigers’ (Thailand, Malaysia, Indonesia, Philippine, Hong Kong, Korea, Taiwan and Singapore) from the peak of the glorious ‘Economic Miracle’ in the past few years. Because of the severity and contagion of the East Asia Crisis, important questions have been raised such as the causes of the crisis, the role of the International Monetary Fund (IMF), and the financial architecture of international capital markets. As one of the most important international organizations, IMF has its great impact on the world economy. In this paper, the influence of IMF before the eruption of the crisis and its role in the recovery of East Asia economy will be presented. The paper...
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...Harrigan The Impact of the Asia Crisis on U.S. Industry: An Almost-Free Lunch? • The large devaluations experienced by Korea, Malaysia, Thailand, and Indonesia beginning in the summer of 1997 raised concerns that imports from these countries would soar while demand for U.S. exports weakened, causing U.S. industries to suffer. W • As it turned out, manufactured imports from the four countries rose only slightly, and the decline in U.S. exports was not large enough to have a significant effect on trend output for most industries. • The one exception to this pattern was the steel industry: there, sharply rising imports and falling exports led to a drop in output and prices. • Overall, the United States enjoyed an “almost-free lunch” in the wake of the Asia crisis. Cheaper imports benefited consumers, and domestic production and employment were largely unhurt. hen the Asia crisis erupted in the summer of 1997, many forecasters predicted that one effect would be an end to the economic boom in the United States. Surely, it was argued, the drop in demand for U.S. exports combined with surging import volumes would finally be enough to slow the U.S. economy. It did not happen. Indeed, the Asia crisis’ overall effects on the United States were small.1 In terms of trade flows, total manufactured imports from the Asian countries affected by a currency collapse—Indonesia, Korea, Malaysia, and Thailand, which I will refer to as the “Crisis 4” countries—grew only slightly...
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...and strong growth in commodity-exporting economies including Australia. (maybe because of 1997-1998 Asian financial crisis) In the coming decade, Asian economies are likely to continue their ascendancy, albeit at a slower pace, which should eventually decouple Asia from the advanced economies. With increasing domestic cost pressures, Asia may also become a new source of global inflation. Asia’s exports of capital to advanced economies may shrink as the region rebalances and outflows should focus more on portfolio investment and foreign direct investment (FDI). In the coming decade, a potential crisis in a major Asian economy such as China could trigger the next global recession. SUMMARY: History: more than 1000 years before the industrial revolution, the combined share of China and India in the world economy was routinely greater than 50% (but whether they will assert influences on the world economy depends on assumption of sustainability) 1993: the East Asian miracle, HPAEs (world bank 1993), no China India 1997-1998 Asian financial crisis (triggered by the withdrawal of foreign capital from the region, however, excessive borrowing, overheating economies and declining investment returns in previous years had already laid the foundations) 1999, 2000: most Asian countries recovered 2008 GFC may accelerate the shift of global economic gravity toward Asia and probably reinforced the prediction of a new Asian century: during GFC, China &India stay 9% growth rate, and...
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...There are five questions from each unit. • Question 1 5 out of 5 points According to World Bank standards, a country can be considered "developing" if which of the following is true? Answer Selected Answer: The country has a low- or middle-income economy. Correct Answer: The country has a low- or middle-income economy. • Question 2 5 out of 5 points As of 2001, what region of the world contained the highest number of the world’s extremely and moderately poor citizens? Answer Selected Answer: South Asia Correct Answer: South Asia • Question 3 5 out of 5 points According to the various graphs comparing poverty in 1981 to poverty in 2001, which of the following is true? Answer Selected Answer: The number of people in East Asia living in extreme poverty fell, while the number living in moderate poverty grew. Correct Answer: The number of people in East Asia living in extreme poverty fell, while the number living in moderate poverty grew. • Question 4 5 out of 5 points Why there is so little formal work in Peña Blanca? Answer Selected Answer: It is a poor, rural town whose economy and infrastructure are not strong enough to support regular jobs. Correct Answer: It is a poor, rural town whose economy and infrastructure are not strong enough to support regular jobs. • Question 5 5 out of 5 points What does the term Global South refer to? Answer Selected...
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...Wednesday, 27 January 2016 Explain how the global pattern of tourism is the result of a variety of factors (25 Marks) (PLAN) Intro - Global data- in 1950 50 million international arrivals, in comparison in 2010 there was 1,015 million international arrivals - However, this growth in tourism is not uniformly distributed, rather some areas such as Europe have prospered with Europe growing from 25 million in 1950 to 550 million in 2010, but some areas such as South Asia who have grown from 0 million in 1990 to 20 million in 2010. Showing signs of there being spatial patterns and variations. - There are political, social, environmental and economic reasons for this pattern. - Throughout the globe we have two main types of tourism: • organised mass tourism - top-down, high density, ‘package holidays’, all-inclusive, can lead to economic leakages, enclaved tourism (main example- cruise ships), generally ran by TNCs • alternative tourism - bottom-up, less planned, involving communities, eco-tourism, integrating with culture, minimal impact on local environment, niche - Focus on the fact that it is not growth of tourism but the pattern of tourism The global pattern of tourism can result from political factors 1. When a country is stable, tourists are more likely to go there, as it is safer than a less stable country. This could mean that there has been differences in the pattern of tourism between politically stable countries and non stable countries...
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...attractiveness of Asia, and the reason why Giordano choose Asia as its main market. From the analysis of Asian environment, sizeable population, increasing consumption on cloth, pursuing for fashion and globalization of world are all factors that make Asia attractive. Giordano’s FDI-related projects and the FDI modes are exhibited in this report, which can describe a whole picture of this company’s development. In addition, based on the analysis of FDI activities, Giordano’s FDI activities have many impacts on host economies, like job creation in Indonesia. This report draws on sales data of main Asian markets and subordinate brands to analyse the trend of investment of Giordano. Korea is the most important and second market except Mainland China；The Middle East grows quickly during last decades; Singapore is a stable and profitable market. Malaysia and Indonesia are potential markets, and from a long term perspective Giordano will focus on the development of these countries. Asia is the basic market of Giordano, which conducts over 95% foreign investment there. This report applies SWOT analysis to illustrate the strengths, weaknesses, opportunities and threats, and also uses PEST analysis to explain the external factors-political, economic, social and technological, which influence the investment direction in the future. Country screening process identifies company-specific criteria, which enable them to rank countries. Giordano mainly selects countries in Asia and compares...
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...Shin, H. I. (2004, August 26). Keeping the ‘Korea wave’ washing onto Asian shores. The Korean Herald * Ravina, M. (2010, November 21). Introduction: conceptualizing the Korean Wave. http://findarticles.com/p/articles/mi_7066/is_31/ ai_n45060645/ * Hallyu Korean Wave. (n, d.) http://www.korea.net/AboutKorea/Culture-and-the-Arts/Hallyu * Rachel. (2015, May 24). The Hallyu Wave: How Crisis Led To K-Pop. http://seoulbeats.com/2015/05/hallyu-wave-crisis-led-k-pop/ * Fuelled by fashion, the Korean wave is taking the world by storm. (n, d.). http://www.scmp.com/magazines/post-magazine/article/1870798/fuelled-fashion-korean-wave-taking-world-storm First operated by the spread of K-dramas shown across East, South and Southeast Asia during its beginning stages stages, the Korean Wave evolved from a development within the country, into a global phenomenon due to the rapid increase of Korean pop (K-pop) music videos on YouTube. Currently, the expansion of the Korean Wave to other corners of the world is visibly seen amongst teenagers and young adults in around Latin America, Western Asia, North Africa, Southern Africa, Central Europe, Eastern Europe and other places among Western world. As Korean pop, or K-Pop culture becomes an increasingly globalized phenomenon, its fast-growing popularity in many parts of the world has encouraged South Korea to utilize its cultural and entertainment area to access, tap and break into foreign entertainment markets to further enhance its...
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...World Economic and Financial Sur veys Regional Economic Outlook Middle East and Central Asia 09 I N T E R N A T I O N A L M O N E T A R Y M AY F U N D W o r l d E c o n o m i c a n d F in a n c i a l S u r v e y s Regional Economic Outlook Middle East and Central Asia •••••••••••••••••••••• 09 I N T E R N A T I O N A L M O N E T A R Y F MAY U N D ©2009 International Monetary Fund Cataloging-in-Publication Data Regional economic outlook : Middle East and Central Asia. – [Washington, D.C.] : International Monetary Fund, 2009. p. ; cm. – (World economic and financial surveys, 0258-7440) ISBN 978-1-58906-842-1 “MAY09.” Includes bibliographical references. 1. Economic forecasting – Middle East. 2. Economic forecasting – Asia, Central. 3. Middle East – Economic conditions. 4. Middle East – Economic conditions – Statistics. 5. Asia, Central – Economic conditions. 6. Asia, Central – Economic conditions – Statistics. I. International Monetary Fund. II. Series: World economic and financial surveys. HC415.15.R445 2009 Please send orders to: International Monetary Fund, Publication Services 700 19th St. N.W., Washington, D.C. 20431, U.S.A. Tel.: (202) 623-7430 Fax: (202) 623-7201 E-mail: publications@imf.org Internet: www.imfbookstore.org The views expressed in this publication are those of the contributors...
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...The future for rich countries is economic stagnation, as economic growth increasingly occurs in developing countries in Asia. Introduction In December 2007, The Great Recession has affected the world economy(S. Montana.2010). This downturn more or less was detrimental to every country. However, by the summer of 2009, world economists started to believe that recession was over. The subsequent recovery was weak with persistent high levels of unemployment and inflation which still remained throughout many countries(The Economist.2010). This so called economic crisis caused substantial economic upheaval. Rich countries are no longer dominate the world, while rapid economic growth in Asia is becoming more and more significant. This essay will emphasize that the balance of power will not shift to the East, as India and China develop, and will illustrate the key fact why the West will not regress. An analysis regarding the forecast for both, developing and developed, countries will be provided by looking at: the economic prognoses for Asia, China and India in particular; the potential economic stagnation in rich countries; the evidence suggesting that the balance of power will not shift from West to East. Current economic situation in Asia. Forecast for Chinese and Indian economy. Even The Great Recession in 2007 could not stop sustained takeoff of two countries, which population together accounts one-third of the planets population, India and China. Both countries...
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...Name Institution Instructor Date Singapore Microeconomic Summary Fifty years ago Singapore was known to be among the most underdeveloped countries with a GDP of less than US$ 320. Currently, the country is one the fastest growing economies with a GDP of US$ 60,000 making it among the richest economies in the world (Bhaskaran 200). It is for the fastest growth of Singapore economy that this paper looks at its microeconomic status from the year 2009. Singapore, officially known as Republic of Singapore is an island country and a sovereign city-state in southern Asia. It lies on the southern peninsula and is 137 kilometers north of equator.Singapore is one of the world's major commercial hubs, with the fourth largest financial centre and one of the busiest ports in the world. The country’s population is 5,469,700 people where 61% of the individuals are citizen while the remaining 39% are permanent residents or foreign students. According to Bhaskaran (211) the majority of the people (51%) in Singapore are aged between 24-51years old. The monetary policy of Singapore has been centered on the management of exchange rate since early 1980s.This is because the primary objective was to promote medium term cost stability as a basis for sustainable economic growth in the country. The selection of the monetary policy regime is predicated on the small and open nature of the Singapore economy. Since 2009, Singapore has a highly developed economy, based historically on extended and...
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...Good ethics are fundamental to their way of life and feature in everything they do. Nobody is born knowing these values and hence they are learned as one grows. The parents are the source of these values. In fact, in East Asia parents make the rules and the children are supposed to follow and respect those rules. In the family tree, you find the chain of commands flow in the order of the structure of who is older than the other. It is the values of the family that identifies them and creates harmony (Bray 152). Anything which might lead into disruption of this values and harmony is not condoned. Any aspect of disrespecting the family values not only brings shame to the individual who did the disrespectful act, but also is a big disgrace to the family of the person. As a result, everybody strives to behave respectively so that he does not become a disgrace to his entire families. In the long run, this infiltrates good morals to the family members and cultivates...
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...Are Third WorldCountries the Losers of Globalisation Page 1 Dennis DamerAre Third World Countries The Losers1/10of Globalisation? Are Third WorldCountries the Losers of Globalisation? Economics Term PaperBy Dennis DamerSS 2002 Content: Page 1. Introduction 22. What is Globalisation? 33. The Origins of Globalisation 34. The Third World 4a. African 4b. Asia 5c. Latin America6d. Russia 75. Globalisation - the Culprit? 76. Bibliography 97. Notes 9 Page 2 Dennis DamerAre Third World Countries The Losers2/10of Globalisation? Introduction Today more than a billion people areliving in extreme poverty having lessthan one dollar a day at their disposalto live or merely to survive. Moreover,until 2015 the world’s population willlikely have grown to 7 billion1. Add tothat 58 million HIV/Aids infectionslargely in the third world countries andmore specifically, Africa.Despite constant lamentation aboutextortionate taxes and poverty inwestern countries Europe, NorthAmerica and part of Asia is wealthierthan ever in the history of mankind.Investors from Europe put their moneyto work in countries around the world.Wal Mart recently announced $220billion in sales for 2001 making itbigger than the economies ofIndonesia, South Africa or Turkey².In the last two decades internationalflows of capital, goods, services,information and labour increased involume and accelerated substantially.In some industries national boundariesbecame obsolete, like remnants of a NGOs and pressure groups...
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...World Hunger Have you ever thought about what its like to not have food? I am sure that most people do not have to worry about being hungry everyday, but there are people who do. There are currently 925 million people that are starving in the world today. It hurts to think about all of those people that do not make it through the night because of not having any food. According to the definition in the Oxford English Dictionary hunger is “the uneasy or painful sensation caused by want of food; craving appetite. Also the exhausted condition caused by want of food.” There are so many ways that world hunger can be eliminated. Together, we could raise money, start food drives, and even teach those countries who are in need of food, how to grow different food. If just one person got out there and helped feed the hungry, just imagine the lives that could be saved. Its amazing how much just one person can do. There are so many around the world that are dying every minute from starvation, but by raising awareness, showing the statistics, and giving ideas, we can end world hunger. We live in a world where so many have no clue about the people in need of food. I feel like so many don’t show their loving sides to those who need our help. Of course, there are a good bit of people out there who show their kindness to those in need. Just think about everyone who is worrying about when they will get their next meal. The problem that is occurring right now needs to be revealed to the world...
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...quarter • industrial production, which expanded by just 2.6 per cent in 2008-2009, posted a 16.7 percentage point increase in January • in the three months to December, exports rose by 2.9 per cent (six per cent year-on-year) whilst imports climbed by 10.8 per cent (1.2 per cent year-on-year) • the rising price of food, fuel and manufactured goods saw the wholesale price index-based inflation soar to a 16-month high of 9.89 per cent in February. The Grant Thornton International Business Report (IBR) 2010 surveyed the views of over 7,400 privately held businesses (PHBs) in 36 economies around the world. This report focuses on India, the experiences and attitudes of its privately held businesses and how they have been affected by the economic crisis along with how they are dealing with the recovery, as illustrated in figure 1. The IBR survey tells us that businesses in India are slightly more optimistic as regards the outlook for the economy over the next 12 months this year, and three-quarters expect to see an upturn in the global economy by the end of 2010. Business expectations for revenue and profitability are even more optimistic than last year, but cost of finance remains a major constraint on potential expansion. 1 source: International Monetary...
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