Research about the Asian financial crisis in 1997/1998. Explore what caused the crisis and how it happened. Using the Mindmap, present the outcomes of your research in a graphical way. Mount your mindmap in the space provided.
Answer (1)
The Asian Financial Crisis started in 1997 and affected many Asian countries like Thailand, Indonesia, South Korea, and the Philippines.Causes:Too much borrowing: Many companies and governments borrowed money in US dollars instead of local currency.Overvalued currencies: Their currencies were kept high, but their economies couldn't keep up.Foreign investors pulled out: When confidence dropped, foreign investors withdrew money quickly, causing currencies to crash.What happened:The Thai baht collapsed first, followed by a domino effect across Asia.Stock markets crashed, banks failed, and millions lost jobs.Countries had to get help from the International Monetary Fund (IMF).
