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Once the crisis was apparent, financial managers of MNEs should rationally stop expansion of local facilities and try to repatriate cash balances in local currencies, if possible. This would cause the financial component of the balance of payments to worsen for the countries involved. For companies. manufacturing for local consumption, a drop in local demand, possibly caused by an increase in costs if imported components were needed, would lead to cut backs in production and resultant unemployment, making the crisis-caused depression even worse.
The lessons learned from the crisis support. As the year 1997 is Do not let the expansion of the economic bubble, since it is driven from the land and securities prices soaring higher than levels reflecting underlying reality. When the economy is growing fast and should be considered that the growth is quality growth if it is devoid of quality, it should be the policy of economic growth to slow abruptly. The opening should take into account the appropriate level of openness that benefit the country as much as it should have been preparing the infrastructure and economic restructuring of the country's right to produce and contributing to the economic policies the most.
Liberalization of financial capital as inputs make the move out of international capital. This has resulted in a shaky domestic economy significantly. Countries that choose to approach the Liberal finance must have the tools and ability to deal with speculators. Both within the country and abroad This mechanism should be improved monetary policy before the financial liberalization. And liberal financial policies. Systems need to be in the same direction
, should reduce its reliance on funding from abroad and turned to a more self-reliant. Should strict and effective supervision and monitoring of financial institutions. When the crisis was evident, financial managers of MNEs should stop the expansion of facilities in the district and, if possible, try to return cash in local currency. This will make the financial component of the balance of payments worsen for the countries involved. For companies that produce for local consumption. On demand Probably due to the increase in the cost if needed. Imported components will lead to cut backs in production and resultant depression crisis even worse.
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