Q1

Through the 1970s, essential changes in structure took place that also resulted to the end of the Bretton Woods system. The increasing interdependence on the monetary value among countries which further contributed escalated financial transactions internationally (Iovițu, Mariana, et al., 174).  The fast integration and development of the international financial markets making multinational banks to release much funds for investment purposes also resulted in the decline of the system. The growth in the international markets increased the capital flows in the global markets.

Q2

Several factors contributed to the Asian financial crisis in the late 1990s encompassing the interpretation of the crisis. The global investors underestimated the risks and decided to search for higher yields during a period when the opportunities in investment appeared less profitable in Japan and Europe contributing to reduced economic growth (Iovițu, Mariana, et al., 176). Another factor is the inadequate relevant rules and insufficient supervision of the financial system that resulted in sharp interference in the quality of loan portfolios for banks.

Q3

The global supply chain is a dynamic global network when a company buys or uses products from overseas. Through the assistance of supply chains, managers can know where to locate a business depending on the cost of production (Iovițu, Mariana, et al., 177). Supply chains encourage innovation through the development of technology in countries which applies it to raise funds that are required to keep a business running.

Q4

Neoliberalism, when used as an economic policy, increases inequality and retards economic growth in the country. Low economic growth contributes to high levels of poverty among the citizens of a nation.  The principles of neoliberal agenda have not delivered as expected since it addresses explicitly austerity and the freedom of capital to cross the borders (Iovițu, Mariana, et al., 178). The capital contributes to the trade-off experienced between equity and growth aspects of the agenda. The policies on austerity affect demand and result in high rates of unemployment in a country. Therefore, neoliberalism has contributed to increased inequality and low economic growth resulting in poverty.

 
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