The Russian financial crisis occurred on August 17, 1998, exacerbated by the global recession caused by the Asian financial crisis in 1997. Russia was highly dependent on exports of raw materials, with petroleum, natural gas, metals and timber accounting for more than 80% of its exports. With the drop in global demand, prices of those commodities began to decline. This resulted in an impact on its foreign exchange reserves since Russia had a fixed exchange rate regime during this period of time,
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then decide not to meet its payment obligations. Alternatively, the government might impose foreign exchange controls that prohibit the counterparty from making its payments. Sovereign risk differs from credit risk because it is dependent on the financial status of the government rather than the counterparty itself. A counterparty could have very low credit risk but conceivably be perceived as having high sovereign risk because of its government. It does not have control over some restrictions that
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of shares. FDI is one example of international factor movements. Comparison of FDI: ASEAN and SAARC Inward foreign direct investment flows, annual, 1970-2012(in Billion USD) 160 140 120 100 80 60 40 20 0 ASEAN (Association of South-East Asian
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Domino’s Effect. When one collapsed, others follows too. That is what happened to Indonesia and other Asian countries like Philippine, Malaysia and Singapore. It started in Thailand when Thai government failed to defend the bath and end up raising huge debt. After that other Asian countries also started to face financial crisis due collapse of confidence in the ability to maintain their fixed exchange rates while continuing to allow the free movement of foreign finance capital at a time of increasing
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The Asian financial crisis (sometimes referred to as the "Tom Yum Gung crisis" after the Thai hot-and-sour soup) started with the devaluation of Thailand’s Bath, which took place on July 2, 1997. This first devaluation of the Thai Baht was soon followed by that of the Philippine Peso, the Malaysian Ringgit, the Indonesian Rupiah and, to a lesser extent, the Singaporean Dollar. What began as a currency crisis soon affected the wider economy and led to economic downturns in other countries in the region
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=> Key weaknesses prior to the 1997 crisis were a lack of increase in output efficiency, poor banking regulations and poor legal frameworks Asian Crisis of 1997 => 1) western investors loaned money to east Asian banks (believing growth would continue and that the IMF would bailout if needed) 2) money was funneled into projects with cheap credit and no collateral 3) projects didn’t have good returns and currency speculators started to sell east Asian currencies 4) triggered drop in baht value
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2000. No. 31 Beyond the Linguistic Analogy: Norm and Action in International Politics, by Kai Alderson, May 2000. No. 32 The Changing Nature of International Institutions: The Case of Territoriality, by Kalevi J. Holsti, November 2000. No. 33 South Asian Nukes and Dilemmas of International Nonproliferation Regimes, by Haider K. Nizamani, December 2000. No. 34 Tipping the Balance: Theatre Missile Defence and the Evolving Security Relations in Northeast Asia, by Marc Lanteigne, January 2001. No. 35 Between
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there are east-Asian initiatives on financial and monetary cooperation. But grand visions for Asian regional blocs are not achievable. Regional economic integration is most developed in east Asia, but only because of manufacturing supply chains linked to global markets. South Asia is the most malintegrated region in the world. And east and south Asia are much less integrated in finance than they are in trade and FDI – due to highly restrictive national policies governing financial markets. Asia’s
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Global perspectives on governance: lessons from east and west While the core principles of governance are the same throughout the world, the Asian model places particular emphasis on trust and relationships. This paper discusses the key differences between the western and Asian approaches to help business leaders explore the best aspects of both. Conclusions 1. The corporate governance model that’s familiar in Asia, Africa and most developing nations places strong emphasis on trust
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Introduction a) Definition According to wikipedia Economic integration is the unification of economic policies between different states through the partial or full abolition of tariff and non-tariff restrictions on trade taking place among them prior to their integration. According to business dictionary The elimination of tariff and nontariff barriers to the flow of goods, services, and factors of production between a group of nations, or different parts of the same nation. According
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