Question

Why there are financial crisis across economies in globe? How financial institutions reduce impact of these crisis?

FIN402​

Answer 1

Answer:

The global economic crisis has led to a sharp reduction in world trade and rapid decline in commodity prices. This is one of the main mechanisms through which LDCs have been affected

During the financial crisis the sensitive cooperation of international financial service was severely disturbed and this affected international trade. Thus the price increase in trade financing or the absence of it has led to a decrease in global trade flows

When a financial crisis or shock hits a country, accessing capital becomes more difficult. As a result, crises reduce the extent to which firms enter export markets and limit the ability of firms to export new products or explore new markets.

Explanation:

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