Define measures that propose to prevent the recurrence, Financial Management

Assignment Help:

In an integrated world financial market, a financial crisis in a country can be rapidly transmitted to other countries, causing a global crisis. What kind of measures would you propose to prevent the recurrence of an Asia-type crisis.

Answer: Very first, there should be a multinational safety net to safeguard the world financial system from the Asia-type crisis. After that, international institutions such as IMF and the World Bank should monitor problematic countries much more closely and offer timely advice to those countries. Countries should be needed to fully disclose economic and financial information that is why devaluation surprises can be prevented. Third, countries should rely more on domestic savings and long-term foreign investments, as compared to short-term portfolio capital. There can be other suggestions.


Related Discussions:- Define measures that propose to prevent the recurrence

Valuing zero-coupon bond, As we know, zero-coupon bonds are issued wi...

As we know, zero-coupon bonds are issued without any periodic coupon payments. The investor gets the interest and the principal on a maturity date. The interest i

Option-adjusted spread, The Option-Adjusted Spread (OAS) is a measu...

The Option-Adjusted Spread (OAS) is a measure of the yield spread (expressed in basis points) which can be used to convert differences between the values an

Stock exchange, Working and function of stock exchange

Working and function of stock exchange

Bond's capital gain yield, A 10-year, 12% semi-yearly coupon bond with a pa...

A 10-year, 12% semi-yearly coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,050. The bond sells for $1,050. (Suppose that the bond has just bee

Show internal business risk, Internal business risk associated with the ope...

Internal business risk associated with the operational efficiency of the firm. The operational efficiency differs from company to company. The efficiency of operation is reflected

Residual method to find cyclical variation, Residual Method We know th...

Residual Method We know that a time series consisting of annual data for longer periods is depicted by trend lines. This facilitates us to isolate the component of secular tre

Orperating cycle, #discuss the applicability of an operating cycle in veget...

#discuss the applicability of an operating cycle in vegetable growing business in uganda..

State the traditional approach of financial management, Traditional Approac...

Traditional Approach of financial management Traditional approach to the scope of financial management refers to its subject matter, in academic literature in initial stages o

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd