losing competitiveness in foreign markets and economy starts downturn. Investors will decrease investments in stock markets in a result capital will flow out, bubble will collapse and the final result will be crisis. In short cons of this kind of short term inflows outweigh pros for the developing
In 1997 South Korea faced bankruptcy. This economic crisis was remarkable because it gave the biggest impact to South Korea. The unemployment rate increases because many employees loses work due to the economic crisis. Unwise lenders has the difficulty and careless in the banking system. While companies they simply invest too fast and too much. Moreover, this crisis is also combined of policy blunders, political, social and cultural. The major indicators was the exchange rate and the short term interest
If they are not structuring their business as a corporation, be aware that a general partnership comes with it the personal liability for all the business’s responsibilities and debts. If the company gets sued into bankruptcy court, all fines are the obligation of the individual partners. Even if a partner is acting on their own, all partners are responsible for the result of those decisions. Another disadvantage is management issues. Partners can make investments from
In order to understand what are the pros and cons of austerity measures, let’s consider austerity in Portugal. Portugal suffered from the combination of next three things: low growth, an aging population, and low productivity. When, in 2010, the crisis started in Greece, forcing many investors