Chap001尤恩_国际财务管理_英文第五版.pptVIP

Europe’s Sovereign-Debt Crisis of 2010 In December of 2009 the new Greek government revealed that its budget deficit for the year would be 12.7% of GDP, not the 3.7% forecast. Investors sold off Greek government bonds and the ratings agencies downgraded them to “junk.” While Greece represents only 2.5% of euro-zone GDP, the crisis became a Europe-wide debt crisis. The challenge remains that fiscal indiscipline of one euro-zone country can escalate to a Europe-wide crisis. The Greek Drama Greece paid no premium above the German rate until late fall 2009. The Greek interest rate rose until the bailout package on May 9. Economic Integration Over the past 50 years, international trade increased about twice as fast as world GDP. There has been a change in the attitudes of many of the world’s governments, who have abandoned mercantilist views and embraced free trade as the surest route to prosperity for their citizenry. Liberalization of Protectionist Legislation The General Agreement on Tariffs and Trade (GATT) is a multilateral agreement among member countries that has reduced many barriers to trade. The World Trade Organization has the power to enforce the rules of international trade. On January 1, 2005, the era of quotas on imported textiles ended. This is an event of historic proportions. NAFTA The North American Free Trade Agreement (NAFTA) calls for phasing out impediments to trade between Canada, Mexico, and the United States over a 15-year period beginning in 1994. For Mexico, the ratio of export to GDP has increased dramatically from 2.2% in 1973 to 29% in 2006. The increased trade has resulted in increased numbers of jobs and a higher standard of living for all member nations. Privatization The selling of state-run enterprises to investors is also known as “denationalization.” Privatization is often seen in socialist economies in transition to market economies. By most estimates, this increases the efficiency of the enterprise. It also often spurs a tremendou