Business In Asia Research Paper Example | Topics and Well Written Essays - 2250 words

Business In Asia - Research Paper Example The Asian Financial Crisis which happened during 1997 in stark continuation with the happening of the global financial crisis rendered significant implications on separate economies of Asia. The paper in this connection endeavours to understand the impacts of the Asian Financial Crisis on economies of Japan, South Korea and Taiwan. Japan entered the realm of financial crisis owing to the decline in the currency of Thailand. During the era of financial crisis, both the currencies of Asia and America became overvalued leading to mass scale investments in the region of Thailand. Investments which were driven to Thailand mainly catered to the development of construction industry leading to the rise of the property bubble. However, the situation of the financial institutions in Japan deeply worsened which lead to the region’s further dependence on international funds. As compared to the Japanese effect economic and financial situation of other economies like Taiwan and Singapore al so reflected similar slowdowns. The growth of the Asian Financial Crisis also leads to the final demise of economies like Indonesia and Southern Korea. The Asian countries like Malaysia, Thailand, the region of Hong Kong and the Philippines Islands were all swept by a huge recessionary wave. Further, the decline in the currencies of the Asian economies also made these economies highly dependent on foreign currencies making them equally expensive. Thus, the financial institutions of these Asian economies started finding it difficult to meet the debt of the external borrowings. (Moe, 2004, pp.231-232). Thus, it is found that the happening of the global financial crisis changed the face of the Asian economies. Leaving the Chinese and Taiwanese economies, the Gross Domestic Product of other Asian economies like Korea, Indonesia, Hong Kong, Japan, Thailand and the like was adversely affected owing to the wave of global financial crisis. Several policy decisions were taken at the regional level to counter the growing effect of the financial crisis. The