Author Question: One of the more unique aspects of NAFTA compared with other preferential trade arrangements is the ... (Read 78 times)

Diane · **on:** Jun 30, 2018

One of the more unique aspects of NAFTA compared with other preferential trade arrangements is the fact that the NAFTA countries have

A) similar cultures.
B) fixed exchange rates.
C) common borders.
D) very different standards of living.

Question 2

Describe the background factors that contributed to the Asian financial crisis.

What will be an ideal response?

TDubDCFL · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

D

Answer to Question 2

Investors were seeking higher growth and government policies were thought to be very stable and favorable for growth in this region, so there were tremendous capital inflows. Most currencies were pegged to the U.S. dollar and the dollar was appreciating internationally, causing the real exchange rates to be overvalued. Export earnings were damaged by the currency values. These revealed other weaknesses in corporate structures, regulatory systems, and the financial sector, especially in the area of transparency.