11 Chapter 09-Trade water

Asianfinancialcrisis of1998

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Unformatted text preview: pital Markets and Investments Capital Markets and Investments – Banks, securities firms, stock markets, and foreign exchange markets – currency market is least stable and predictable – “capital flight” (eg. Asian Financial Crisis of 1998) – Capital controls favored by developing countries Asian financial crisis of 1998­99 Capital Markets and Investments Capital Markets and Investments • FDI ­ Private investment in foreign countries – Good or bad for developing countries? •Incentives – lower pollution and labor standards – ‘race to the bottom’ •Distorts domestic economy/society •Influence on politics/corruption •BUT – source of ideas, finance, cheaper goods Large Inflows to Developing Large Inflows to Developing Countries Investment helps make possible Investment helps make possible increas...
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This note was uploaded on 02/25/2014 for the course IR 271 taught by Professor Corgan during the Fall '08 term at BU.

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