1. Political risk Opportunity Cost 11. 111. 1V. V. V1. Asian Crisis Mexico Crisis Capital Account Current Account Singapore Laws Mexico Laws Countries must different to engage trade Common Law origin Several countries were involved in this crisis and it sparked wide-spread recessions in those countries. Under the pure flexible exchange regime, this account balance should be 0. This account records the nation imports and exports Transactions of stock and bond purchases should be recorded in this account. Defined as the value of some other good that you must give up produce this additional unit Civil Law origin This is a market imperfection involving sovereign governments. This peso crisis represents the first international financial crisis touched off by cross-border flights of portfolio capital and resulted from depreciation currency by the government. V11. V111. 1X