Asian Financial Crisis
The "Asian financial crisis", did not solely affect the countries of Asia but also had an impact on other world economies including the United States. This paper will look at the short run effects that occurred on the U.S. Steel Industry as well as predictions of long run effects in the future. "Asian financial crisis" started in July 1997, when speculators and Thai residents were trying to sell the baht and buy U.S. dollars, because the fixed exchange rate of the baht were pegged artificially high to the U.S. dollar. This caused the baht out of the country, and the Thai government ran out of foreign exchange reserves. As a result, capital became scarcer, the baht devalued by 20% as measured against the U.S. dollar, and interest rates on borrowed money sharply increased. Productivity in Thailand decreased, unemployment became high, and businesses went bankrupt causing the worst recession in Thai postwar history. Once the crisis hit Thailand, the prices for exports fell causing other Asian currencies to be devalued as well. In particular, Indonesia's currency, the rupiah came under attack and had to be devalued by about 90% over the period of just a few months. The economy as a whole in Indonesia has been even more se
The Western states with the largest share of exports to Asia include: Washington, Oregon, Arizona, California, and Alaska. With the rapid development of Asian countries came high inflation rates and large trade deficits, contributing to heavy external borrowing and currency overvaluation. Since the "Asian Financial Crisis" began in 1997, 10,000 steel workers lost their jobs, 3 steel companies went bankrupt, one-half dozen steel companies are on the brink of bankruptcy, and virtually all producers large and small are operating at tremendous losses. or IMF funds are being used to subsidize Korean industry. Retrieved February 26, 2000 from the World Wide Web: http://www.
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Acceptance Essays
