Case summary:
In the year 2008, the Country I have suffered from economic difficulties in the global financial crisis. This country has started to expand their banking operation into other countries, so they entered local mortgage markets and bought foreign financial institutions. The expansion was financed by debts such as short-term loans. Later, the three banks went bankruptcy when there was a global financial market crash.
The government of the Country I was seizing the domestic assets of the banks to help the local depositors. Even the government used International Monetary fund (IMF) to backstop deposit guarantees. Finally, the Country’s financial system became stable.
To discuss: The way wherein Country I recover from its crisis and important lessons to learn from this case.
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International Business: Competing in the Global Marketplace
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