What Weakness in the Economic Structures of Asian Countries Contributed

question 17

Multiple Choice

What weakness in the economic structures of Asian countries contributed to the severe financial crisis that Asian economies experienced in 1997?

• A) Productivity: It increased rapidly and the countries were victims of their own success.
• B) Banking regulation: Banks were excessively regulated, which reduced profits.
• C) Legal Framework: The system dealt unsuccessfully with companies in financial trouble.
• D) Natural Resources: Countries' lack of natural resources and failure to explore developing industries accumulated and led to the crisis.
• E) High Taxes: High rates of taxation resulted in a reliance on imports.

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Definitions:

Lumpy Demand

Demand characterized by unpredictable fluctuations and variability, often challenging for businesses to manage effectively.

Safety Stock

Extra inventory held by a business to protect against stockouts due to variability in demand or supply chain disruptions.

Fill Rate

A performance metric that measures the percentage of customer demand that is met without backorders or stockouts.

Replenishment Cycle

The process or time it takes to replenish inventory in a supply chain, from ordering to receiving goods.