a. What are the main common features of countries that experienced financial crises? Compare, in this context
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Question:
a. What are the main common features of countries that experienced financial crises? Compare, in this context the Mexican and Asian financial crises, as well as the Argentinian. Hint: in all these cases, the governments chose first to adopt a pegged currency (typically pegged to the USD. Which collapsed as a result of some specific "exogenous shocks" to their economies.
b. Following these shocks most of the affected economies moved toward a floating currency regimes. What is the main advantage of the floating currency regime that can avoid the severity of the ensuing financial and economic crises?
c. Why is this material important for companies that choose to become multinational corporations?
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