Econ FINAL part 4

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Econ FINAL part 4
2012-12-07 19:20:59
Econ FINAL part

Econ FINAL part 4
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  1. Why and how are Latin businesses changing
    • globalization, privatization, technology change: more competitive pressures
    • more latin co's being changed by young managers: intoduce new tech, slimming down the corp, internationalizing their business
  2. Import substitution industrialization
    • making products for yourself rather than importing them
    • good: faster industrial growth
    • bad: bigger budget deficits and trade deficits
  3. Causes of 1980's international debt crisis
    • couldn't repay debt on time
    • borrowed too much $
    • Fed's actions + floating interest rates on LA loans: US raised interest rates to fight inflation, raising rates in LA on new/existing loans
    • US recession: US was suffering and no longer buying as many of LA's exports
  4. What reforms have been occuring
    • more free trade: LA gov'ts signed free trade agreements with US and eachother
    • more DFI: reduced DFI restrictions to bring in new $, ideas, and tech
    • privatization: many SOE's were sold off, couldn't rely on gov't to always rescue them