Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Economic and Political Issues in Asia - Essay Example

Comments (0) Cite this document
Economic and Political Issues in Asia Abstract The purpose of this paper is to identify the reasons behind the eruption of 2008 US financial crisis. Furthermore, this paper attempts to determine the major differences and similarities between 2008 US financial crisis and 1998 Asian financial crisis in terms of cause and consequences…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91% of users find it useful
Economic and Political Issues in Asia
Read Text Preview

Extract of sample "Economic and Political Issues in Asia"

Download file to see previous pages The major differences between these two crisis can be identified as the implications of US financial crisis has global impact while the impact of 1998 Asian financial was particularly limited to South East Asian countries only. On the other hand, poor financial reporting can be attributed as the major cause of both financial crises. Reasons of 2008 US Financial Crisis The collapse of the Lehman Brothers had spread the terror in the global financial markets. The 2008 US financial crisis was one of the largest global economic crises marked in the modern world. The US government regulations started to wear away the lending standards in the middle era of 1990s. During that period Fannie Mae and Freddie Mac, the government owned enterprises were the owners of the huge share of the American mortgages. However in the year 1995, the US regulation increased the holding of loans in order to lower the borrower’s income. The United States government levied a regulation on Fannie Mae and Freddie Mac to lend loans with either less or no proportion of down payment. This policy of the government resulted on lowering the purchase capacity of the mortgages in order to recover the bad debts (Gwartney, 2009). The Community Reinvestment Act, 1995 regulated by the government also wanted the banks to grant loans in equal proportion to the number of the minority population existing in the financial markets. These objectives were met by the reduction of the conventional lending standards (Gwartney, 2009). There were two major reasons for the financial crisis in the year 2008 namely the increasing prices of the houses and the mortgage market being ineffectively regulated. In the initial stages of 1990, the increasing demand for the houses lowered the mortgage interest rates. Nominal rates are considered as important factor in the mortgage markets as it largely determines the repayment capacity of the borrower. Nevertheless, the financing of mortgages rapidly increased in the US market without the consideration of the nominal rates being decreased. This trend of decrease in the mortgage rates moved towards a drastic financial crisis in the US (Baily, Litan & Johnson, 2008). Precisely, the increasing demand for houses leading towards unstable price increase and skewed demand for mortgages by financial institutions were the prime reasons behind the eruption of 2008 US financial crisis. Differences Between 2008 US Financial Crisis and 1998 Asian Financial Crisis The most affected countries in the 1998 Asian financial crisis were Taiwan, China, Japan, Singapore, Hong Kong, and South Korea. The Asian crisis had started with the threat in the currency rates of the South East Asian countries of Malaysia, Singapore and Japan. Later the major causes of the Asian financial crisis accounted to the gradually increasing prices of the assets and the excess value of the real exchange rate. The rapid increase of the short term foreign borrowing was one of the major external causes of the financial crisis in the Asian countries (Institute of Development Studies, 1998). On the other hand the major causes of the US financial crisis were the unorganized mortgage markets due to the increasing demand for houses. The disturbances in the mortgage financing augmented due to the non-adherence of the nominal rates. The differences in both the financial crises lie in ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
(“Economic and Political Issues in Asia Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Economic and Political Issues in Asia Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from
(Economic and Political Issues in Asia Essay Example | Topics and Well Written Essays - 1000 Words)
Economic and Political Issues in Asia Essay Example | Topics and Well Written Essays - 1000 Words.
“Economic and Political Issues in Asia Essay Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economic and Political Issues in Asia

Political and economic developments

The American political scene has for a long time been dominated by two major political parties despite the constitution allowing the existence of as many parties as the citizens would deem fit. These two parties are the Democratic Party and the Republican Party. These two parties differ in policies and fundamental political ideologies. However, having only two political parties is a show of political maturity. This has contributed to the country’s economic prosperity. With the attainment of independence of most countries, the notion of self rule brought with it the possibilities of the countries liberating their citizenry from poverty and even bad governance. This new system of self governance took a myriad of forms with most of...
4 Pages (1000 words) Essay

Political issues

... elected by the people who exercise political powers. Just like in the US, these leaders espouse a set of laws found in the constitution (Storey, 87). This paper discusses the different between government systems of the US and the UK, as well as other countries referring to three articles. 1. Szilagyi, Ilona Maria. "Presidential versus parliamentary systems." AARMS Vol. 8, No. 2 (2009): 307–314. Notably, the founding fathers who wrote the US constitution had the British political system to draw on; however, they avoided any form of concentrated power that resembled the monarchy because it is one of the chief things that they rebelled against. Nonetheless, there are a few similarities between the two political systems. Both the British...
6 Pages (1500 words) Research Paper

Economic Development in East Asia

...Economic Development in East Asia East Asia is composed of many countries. The total population is more and the growth did not pertain to any one country. The development of each country contributed to the total development of East Asia. Economic development was different in each of the country. While countries like Japan and china started growing at a rapid speed, some countries took their own time in improving. Modern economy started prevailing in almost all these countries. China and Japan opted only at a later stage. ASEAN members including Malaysia and Indonesia preferred the modern economy and worked towards it from 1970's.(Kirby 1967). Many countries started the modern economic growth post Second World War while some other countries...
9 Pages (2250 words) Essay

Political and Economical Issues

...Economical and Political Issues- Asia (Feb. 10, 2007 - April 28, 2007) 1 The menace of terrorism has overshadowed all other issues in Asian region during the past three months. However various other political and economical issues also figured in the highlights. Not withstanding to this the boom in economy of India and China is a matter deserved its place in the screen. The major political and economical issues occurred during the past 3 months i.e. February 10, 2007 to April 28, 2007 has chronologically given . POLITICAL ISSUES AND EVENTS February 11, 2007: General David...
10 Pages (2500 words) Essay

Geo-political issues

Multi ethnic population of the continent, which is represented by different tribes with different culture and religious values, had nearly no experience of living in the politically organized society with vivid social and political hierarchy, Europeans of course didn't promote these values during the centuries of colonial expansion. The number of illiterate population in Africa is one of the highest on the planet and it affected future instability, as those people had no idea of how they should manage their political freedoms and independence. Right after African liberation, new independent states became among the central issues in spheres of influence of two super powers the USA with NATO and the USSR. Both superpowers had defin...
7 Pages (1750 words) Essay

Political and Economic Transition

...Q. What actions can companies and governments take to ensure that products are not easily pirated? A. Piracy is one of the major concerns faced by producers of different kinds of products throughout the world. Anti-piracy measures need to be taken to prevent issues like copyright infringement, counterfeiting and violation of intellectual property. Even though such measures are difficult to impose and not really effective, I still believe each and everything possible should be done to counter the menace of piracy. Patents, for instance can be used to get a right to the sole production of a good, a right to a particular production process or some invention. They are usually granted by the government to the maker of a product...
2 Pages (500 words) Essay

Economic issues

... Economic Issues Price discrimination entails charging different prices to different s depending on their willingness to pay. The main reason for price discrimination is for firms to be able to rack in more revenue owing to different prices for products produced at similar costs (Dobson and Goddard, 168). Charging $150 per ticket for 50-yard-line tickets in the lower deck and $50 per ticket for upper-deck tickets overlooking the end zone by a professional team is price discrimination. This type of discrimination is third degree price discrimination since third degree price discrimination involves charging different groups of customer’s different prices. This is true owing to the two groups of spectators being charged $ 150 for lower-yard...
1 Pages (250 words) Essay

Political Science Issues

...Political Science America is one of the countries that have displayed high level of democracy in its government. One of the ways this has been exhibited is in choosing of the leaders through election. This has been done for a long time through balloting, which represents each and every citizen’s interest. #1. An independent body conducts this election without any preference whatsoever. After the elections have been done, it is the majority and the most popular leaders who emerge as the winners hence make up the new governing body that is the legislature and the executive. This is a perfect representation of democracy as it is the voters’ opinions that are reflected on the elected leaders. #2.The voters are allowed to make independent...
1 Pages (250 words) Assignment

Economic Issues

... Economic Issues was not a good financial year in most nations and they are currently trying to improve their economy and get back on track. UK was one of the nations affected by the financial meltdown with most industries having to downsize and most cities being affected greatly. London however has improved its economic strength quickly and tremendously the last few months and it is booming. The rest of the cities in the country are however really lagging behind and their lack of economic growth being masked by the massive and quick growth of the economy in London. These cities such as Stoke-on-Trent which was once booming with business and investors are now struggling to even keep majority of their industries open as the investors have...
2 Pages (500 words) Essay

Political Issues - The Congress

Political Issues al Affiliation: Home style is the way a member of congress represents their district while in their home district. This is a very critical part in their political career. In order to remain relevant, they must build connections and earn the trust of the constituents in order to ensure that they are reelected again.
When a member of congress makes a trip to their district, they attend different functions and events in order to keep in touch with the members of the public. Party functions and different media events are some of the commonly attended functions by the member of congress while in their home district.
The member of Congress holds forums with the constituents while at home. The member also likes...
2 Pages (500 words) Essay

Cultural History Versus Political History: The Varying Methods of the Two Fathers of History

Even though they have these similarities and have both been bestowed with the same title, these two historians drastically differed in their approaches.

Herodotus had another title bestowed upon him; he was also called the “Father of Lies.” Much of what is known of him has been gathered from his own writings as few other sources are available from his actual life. It should also be noted that the veracity of this information is in question as Herodotus was known to invent much in his own work, and it was sometimes the practice in Ancient Greece to attribute events from the life of one person to another; for instance, it has been questioned if the accounts of Herodotus’ exile are only due to the fact th...
10 Pages (2500 words) Essay

The Economic Impact of the Emergence of China and India

The main macroeconomic variable that toys in the global economy’s shift are the emergence of India and China as new superpowers. This emergence certainly has a number of implications, but among the most relevant are: disruption of the equilibrium of the global economy which results in rising demand of goods, giving way to worldwide inflation; the attractiveness of outsourcing to these countries due to low cost but high talent workforce of these countries for cheaper operations.
The growing middle class of China and India results in booming demand for the automobile industry. This increase in demand, with the increasing purchasing power of these countries’ people, is not limited to automobiles but more apparent in...
10 Pages (2500 words) Assignment

Physiological Factors While Dealing With Health Issues

The body’s metabolism includes all the physiological processes in the body. Enzymes serve as catalysts to biochemical reactions that form a part of metabolism. The two distinct chemical phases of metabolism are anabolism and catabolism. Anabolism consists of building up carbohydrates, proteins, fats and nucleic acids from simple molecules, through the use of energy. Anabolism is responsible for processes such as growth, repair, and reproduction. On the other hand, catabolism is the process by which large complex molecules are broken down into smaller, simple molecules, with the release of energy. Metabolic processes are carried out by the cell organelles, each organelle has a distinct and crucial function. Every animal cell...
12 Pages (3000 words) Report

Political Thought

In the nineteenth century, the term democracy still had uncomplimentary connotations, most of the time; some understand it as a system of mob rule. Now, however, we are all democrats. Liberals, conservatives, socialists, communists, anarchists, and even fascists are all eager to proclaim the virtues of democracy and to demonstrate their own democratic credentials. Indeed, as the major ideological systems faltered and collapsed in the late twentieth century, the flames of democracy appear to burn yet more strongly (Huth & Allee, 2003). As the pull of socialism paled, and the intrinsic worth of capitalism has been called into query, democracy appeared as possibly the single unwavering and lasting principle in the postmodern poli...
6 Pages (1500 words) Assignment

Company Law Issues

Various sections of the CA are coming into force over a staged process and the relevant provision relating to authority is sections 39 and 40, which came into force on 1 October 2007.

Section 39(1) of the CA provides that “the validity of any act done by a company shall not be called into question on the ground of lack of capacity by reason of anything in the company’s constitution”

Additionally, section 40(1) provides that: “In favor of a person dealing with a company in good faith, the power of the board of directors to bind the company, or authorize others to do so, shall be deemed to be free of any limitation under the company’s constitution”.

Section 40 (2)...
9 Pages (2250 words) Case Study

Economic Analysis of India

The country’s economy is fast growing with a stable political system that encourages foreign investment although with certain restrictions. The country generally has good energy, transport and communication systems which make the cost of doing business affordably.

The Republic of India found South of Asia is by far the world’s most populous democracy and ranks seventh largest in terms of geographical area (Brown, 1994). India is also the second most highly populated country in the world. The country has a rich culture with four major religions having originally emerged from it; Sikhism, Buddhism, Hinduism, and Jainism. The Indian Republic consists of seven union territories and 28 states and ranks twelfth la...
8 Pages (2000 words) Case Study

Bernard Madoff : A Scapegoat of the Economic Crisis

Darwin was condemned and treated with contempt by the Church for proposing the theory of evolution that linked all living matter in the earth, including humans. In the case of Bertrand Russell, he was imprisoned as a conscientious objector, for expressing his opposition to British participation in the First World War. These are typical examples of people being wrongfully punished when they were guilty of no crime or fraud or misdoing. It would be highly improper to associate Bernard Madoff with the aforementioned luminaries, for he was truly guilty of carrying out the biggest financial fraud in modern history. At the same time, it would be simplistic to classify him as a victim of the contemporary judicial system. The truth, in fa...
6 Pages (1500 words) Assignment

International Business: World Economic Forum and Davos 2010

While each force of globalization is important, the technological revolution has impacted the business models, value creation and differentiation (Spelman, 2010). The cloud computing technologies that have made the popular social networking applications possible are now being applied to development, healthcare, and society. Today mobile telephones are more like powerful computers that take care of many of the societal challenges facing both developed and developing countries (Evans, 2010). In Chile, new software enables weather information to farmers who can now make informed decisions on when and how to sow or harvest the crops. However, the fear or ignorance of cloud computing technology could harm the chances of the SMEs becomi...
7 Pages (1750 words) Coursework

Globalization and World Economic Forum at Davos 2010

The seven forces of globalization are; Markets, Production, Culture, Labor, Technology, Environment, and Liberalization. Of these factors, the globalization of markets has engaged substantial attention of the firms and academia. Some markets are highly globalized, while some are not. The scale of market globalization is determined by the extent of globalization of customers, customer needs, distribution channels and marketing strategies of the players in the industry (Stonehouse et al, 2004).

The phenomenon of globalization of markets has resulted in both advantages and disadvantages. It has resulted in the convergence in the requirement of features in a product and augmentation of the intensity of B2B and B2C communica...
7 Pages (1750 words) Coursework

American Political Communications

...Political communication: Today, voters no longer make decisions based only on personal opinion but view most issues through the eyes and ears of the media. Most options arise from interpretation of the symbols obtained from mass media. Political advertising is a prominent media for reaching voters. Political advertisements aim at increasing issue knowledge, influencing perceptions of the candidate’s character, altering attitudes and affecting candidate preference. In most political advertisements, politicians essentially promote themselves, their thoughts, beliefs, values, image and political propaganda. These advertisements can have a rather persuasive influence on voters. Political ads can convey both positive and negative feelings...
6 Pages (1500 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Economic and Political Issues in Asia for FREE!

Contact Us