Efecto domino y la economía

Resarch Essay:
An Overview of 1994-2008 Depression Economics and dominoes effect involved

MEDINA Anna
ESC Rennes School of Business
2 Rue Robert d’ Arbrissel, Rennes-France
Master of Science in International Finance
Financial Economics
Thierry Coville
December 15, 2010
An Overview of 1994-2008 Depression Economics and dominoes effect involved
Summary
The Economic crisis is notsomething new in our lives, is a phenomena originate for different factors, monetary policies, political problems, bad management of credits, excessive trust in currencies among multiple factors. The economic crisis that has affected the world in the last 16 years were the Latin-America crisis, Asian crisis and recently US subprime crisis, and these are affected not only their economies, they haveaffected all the economies of the world with a phenomena called “domino effect”, the mainly reason or cause that originated this effect is the Globalization, because business and new negotiations between countries are taking more force and is the reason for the relation between economies.

Index
Introduction 4
Literature Review 5
Research 8
I. What is an Economic crisis? 8
II. What isdominoes effect? 9
III. The dominoes effect and Globalization 10
IV. A little overview of financial crisis (1994-2008) and Impacts all over world 12
A. LATIN-AMERICAN CRISIS 12
Mexican crisis (Tequila effect) 12
Brazilian crisis 14
Argentine crisis 15
Latin-American crisis and Impact over the world 17
B. ASIAN CRISIS 18
The Asian crisis and impact over the world 20
C. U.S.A.SUBPRIME CRISIS 21
The U.S. Sub-prime crisis and impact over the world 24
Conclusions 25
References 27

Introduction
Over the time, we have seen enterprises starting, changing and growing in all the world and with different industries such banks, restaurants, beverage, gadgets, etc but don´t matter where they come from, which were their strategies, the important here is that all arerelated like a chain between them and between the economy of that region or the place where it comes from. This short example gives us an idea about what is Globalization, but according to Held (2000) can be defined as the process by which markets and production in different countries are becoming increasingly interdependent due to the dynamics of trade in goods and services and flows of capitaltechnology. It is not a new phenomenon but the continuation of developments that have been in train for considerable time.
This phenomena called Globalization has been increased in the last years, almost all companies are trying to reach and conquer new markets, but this situation could bring positive things such more jobs, more investment, but it also has a negatives and dark sides. One of these badpoints related with Globalization is the impact or the direct influence that it has with the economic environment, especially with financial crisis of one country and how it affects almost all the world, such Greek crisis, US crisis, etc.
At the beginning of this research, is going to be described the definition of a Economical crisis and how is divided, afterwards the definition of “dominoeseffect” to be clear. To understand better its explained with a little brief the history and causes of the most important crisis in last decade with its impacts in the world (Latin-America and Asian crisis), and at least the worst economic crisis in the last century, the U.S. Subprime crisis and, with numbers, how it affected the economies in the world.

Literature Review
First of all, to defineand describe this research I have to mention that the General Field is Finance and Economics, and its General Topic is Economic crisis. The specific research topic that I have choose to develop this investigation and collect all the information is An Overview of 1994-2008 Depression Economics and dominoes effect involved. I can say that this research has a big influence with International Business...