Asian financial crisis of 1997 - Essay Example

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