Assignment -
Case - The Global Financial Crisis and its Aftermath: Declining Cross-Border Capital Flows
Case Discussion Questions
Q1. Do you think that something like the financial crisis that occurred in 2007-2008 could happen again? If it did, what would the impact be on the ability of firms to raise capital to fund investments, and on the global economy?
Q2. In retrospect, were central banks justified in step-ping in as aggressively as they did to shore up the global financial system? If they had not done so, and instead let more large financial institutions fail, what would have been the consequence?
Q3. How can the risk of occurrence of crises such as the 2007-2008 global financial crisis be mitigated in the future?
Q4. Why do you think that global capital flows were still significantly below their 2007 peak seven years after the crisis hit? What are the implications of this for the ability of multinational firms to finance their in-vestments by raising outside capital?
Q5. What actions do you think a multinational firm can take to limit the impact of future crises in the global financial system on the ability of the enterprise to raise capital to pay its short-term bills and fund long-term investments?
Note - Question 5 needs to be answered.
Attachment:- Case.rar