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the place and the fact that Thailand was already buried in debts that it could no longer hope to recover without any active and strenuous intervention from the international community. As the baht sank like a rock, it took with it the currencies of other neighboring countries. Malaysia and Indonesia were among the first casualties and the rest of the Asian countries followed. North Korea suffered an economic meltdown together with the rest of the nations in Asia. One of its biggest car producers, Kia Motors buckled down under the crisis. Kia Motors was one of the hardest hit companies during the crisis in Asia. On the other hand, The Philippines was also badly shaken during the Asian crisis. In fact, the value of the Philippine peso sank so badly that its value was almost zero. The once promising economy of the Philippines once again slumped down and threatens to a government that is already heavily laden with foreign debts.
The Asian economic crisis happened just about 24 hours after the United Kingdom turned over the sovereignty of Hongkong back to China. Despite the economic turmoil and the uncertainty that had been brought about by the change of powers in Hongkong, the Hongkong banking system, with the strong backing of the China, survived the crisis but suffered some major losses. The economy because sluggish and save for the economies of Singapore and Taiwan that were able to withstand the onslaught in spite of some serious hits in passing, the rest of Asia was in a state of economic shock.
The Asian economic crisis opens the eyes of the world of the volatility of the economy. The Asian crisis affected the entire world and triggered some economic difficulties even in the developed nations. To facilitate the economic recovery of the countries most affected by the crisis, major changes in the economic strategies and policies were instituted in the area (IMF 2000). Major changes in the business environment include the opening up of the economies of these
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Asian entrepreneurs and political leaders received lauding for their economic decision to cooperate with the European and American financial institutions in order to restructure their economies in the worldwide market. The growth of the emerging market economies was so rapid that they were seen as market models.
Situation has now returned to normalcy with upward movements in per capita GDP growth rates and the general investment climate in these nations. The crisis mainly affected Indonesia, Malaysis, Thailand, Korea, Philippines, Singapore and Korea. As the crises continued unabated from one country to another for quite a while, a debate started on the efficacy of globalization itself.
The immediate cause of the crisis was rise in interest rates in the mortgage market so that people with home loans, paying adjustable interest rates, found themselves with spiraling interest payments. This in turn was the result of the liquidity crunch that banks faced as a result of growth in lending to borrowers of the sub-prime category, that is, those who had less than adequate credit worth.
A financial market is a place - an actual location such as a stock exchange building or a virtual location such as in a computer - where buyers and sellers agree to buy and sell financial instruments such as stocks, bonds, or derivatives in order to borrow, lend or invest funds for commercial purposes and in a manner that puts financial resources to best use.
The economic weakness had more serious consequences to the upcoming market. Most of these emerging market economies were adversely impacted on and at the end collapsed. The International Monetary Fund (IMF) tried though it delayed in helping to curb the problem but recovery was observed at a faster rate even if still the situation has not been properly eradicated.
Foreign Debt to Gross Domestic Product (GDP) ratio rose by almost 60%.
ASEAN consisted of Indonesia, Malaysia, Singapore, Philippines, Thailand, Brunei, Vietnam, Myanmar, Laos and Cambodia. It was formed to ensure sovereignty. It was nothing like European Union.
first question arises, and the affirmative answer to the second is obscured, because Hong Kong continues to be viewed through a prism οf improbable opposites. It prescribed that, come July 1st 1997, once the first local chief executive had taken over from the last British
put a large amount of capital in the financial markets, but as the situation in 2008, the situation had worsened with a crash in the global stock markets. The consumers, being in fear of the effects that this crisis would produce, held up their credits. The financial