When discussing international trade, capital flows are the biggest “trade” of all. What does this mean, and why is it so important to recognize this?
What is CalPERS, and why was it facing a crisis?
Chapter 7: Averting a Meltdown: 1994 – 4:56
Assassinations and revolt
Capital gets nervous
Fishing in the Caribbean
Moral risk in Mexico
What do Malaysia’s experiences suggest about capitalism? The Zapatista rebels in Mexico?
In 1994, the US faced the “first real-time, worldwide global financial crisis” with the instability of the Mexican peso. Describe the crisis, and what the US government did in response. How successful was this response?
Chapter 8: The Global Village – 6:47
A borderless world
Talent flows, too
Describe the impact of the vast improvements in communication technologies on the global economy.
What is Narayana Murthy’s definition of “globalization”?
Why was Silicon Valley regarded as the “spiritual center of the new global village”?
Chapter 9: China and the Tigers – 5:35
David Lee goes home
China’s free-trade zones
Immigration’s next wave
Chapter 10: The Japanese Paradox – 3:01
A mountain of bad debt
Killing off new ideas
How did the Japanese export sector differ from its domestic manufacturing sector? How did their differences contribute to the Japanese slump of the early 1990’s?
Chapter 11: Global Contagion Begins – 7:35
Begging us to borrow
Flaws in the system
Building the bubble
Shorting the baht
List and describe the factors that led to the contagion that began in the Thai economy.