--%>
Assignment Help - homework help

Measures to avoid financial crisis

In integrated world financial market, financial crisis in country is rapidly transmitted to the other countries, resulting in the global crisis. State some of the measures would you propose in order to avoid the recurrence of the Asia-type crisis.

E

Expert

Verified

Firstly, there will be multinational safety net in order to preserve the financial system of the world from such Asia-type crisis. Secondly, the international institutions such as World Bank and IMF are supposed to monitor the countries in the problematic situations more closely and offer timely guidance to such countries. These countries are needed to completely reveal the financial and the economic information in order that such devaluation surprises may be avoided. Thirdly, countries must depend more over the domestic savings and  on the long-term foreign investments, instead of the short-term portfolio capital. 

   Related Questions in Financial Accounting

  • Q : International diversification Evaluate

    Evaluate the home country’s multinational corporations as a tool for the international diversification.

    		•
  • Q : Psychological Health Psychological

    Psychological Health: The employees have noted in their survey feedbacks that their peer relations are based on trust and are healthy. But the nature of work is such that they see lot of suffering. Their interaction with clients at times is not health

    		•
  • Q : Recommended action for GM to manage its

    General Motors exports the cars to Spain however the strong dollar against the peseta, hurts the sales of GM cars in the Spain. In Spanish market, GM faces the competition from the French and Italian car makers, like Renault and Fiat, whose currencies stays stable wit

    		•
  • Q : Discuss to what extent does risk and

    to what extent does risk and term structure affects interest rates of financial instruments.

    		•
  • Q : Firm cross-listed on foreign stock

    Explain why and how a firm’s capital cost can be reduced when stock of firm is cross-listed on foreign stock exchanges.

    		•
  • Q : Forecast future and forward exchange

    It is extremely difficult in order to forecast future exchange rates more precisely as compared to forward exchange rate or to the current spot exchange rate, as per the researchers. How these findings can be interpreted?

    		•
  • Q : The cost of the new PPE purchased The

    The following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depr

    		•
  • Q : Define the term Accounts Payable

    Accounts Payable: It is an accounting entry which symbolizes an entity's obligation to pay off a short-term debt to its creditors. Accounts payable entry is found on balance sheet beneath the heading current liabilities. Accounts payable are frequentl

    		•
  • Q : Great Society programs What are the

    What are the goals of “Great Society” programs?

    		•
  • Q : Japanese investments in the Southeast

    Japanese MNCs, like Toshiba, Toyota, Matsushita, and so on, made extensive investments within the Southeast Asian countries such as Malaysia, Thailand, and Indonesia. State your opinion, what forces are making Japanese investments within the region?

    		•