
Case summary:
The cross-border capital flows such as foreign direct investment, equity purchase, and bonds all made the world into a global market system. The cross-border capital declined in the year 2014. The global crisis of 2008 was one of the biggest reasons for the decline of cross-border capital throughout the world.
The financial institution Company LB was affected by the global financial crisis. The global market plunged intro great crisis during this period. The global market did not recover even after 7 years of the crisis. The global market cross-border capital flows are still 66% below its peak value.
To explain: The ways of mitigating occurrences of possible future financial crisis like the one happened in the year 2008.

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Chapter 12 Solutions
International Business: Competing in the Global Marketplace
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