1. GLOBAL ECONOMICS (International Trade) Dr. Andrew L. H. Parkes “A Macroeconomic Understanding for use in Business” Day 16 卜安吉

2. International Trade, Day 162 Financial Crisis Spreads to Eastern European Nations ‘Panic’ Strikes East Europe Borrowers as Banks Cut Franc Loans ‘Panic’ Strikes East Europe Borrowers as Banks Cut Franc Loans This is the title of a New York Times article from October 31, 2008! This is the title of a New York Times article from October 31, 2008! http://www.bloomberg.com/apps/news?pid=20601109&sid=awd1vGnyyBJQ&refer=home

3. International Trade, Day 163 Hungary, Poland and Ukraine “There's no money out there,'' said Apostagi, a project manager in Budapest, Hungary. “We won't collapse, but everything's slowing to a crawl. The whole world is scared and everyone's going a bit mad.''. “We won't collapse, but everything's slowing to a crawl. The whole world is scared and everyone's going a bit mad.''.

4. International Trade, Day 164 Borrow Abroad Foreign-denominated loans helped fuel eastern European economies including Poland, Romania and Ukraine, funding home purchases and entrepreneurship after the region emerged from communism.

5. International Trade, Day 165 Higher Mortgage Payments – Means Less Shopping! Plunging domestic currencies mean higher monthly payments for businesses and households repaying foreign- denominated loans, forcing them to scale back spending.

6. International Trade, Day 166 In Kiev, Ukraine, Yuriy Voloshyn, who works at a real-estate company, says he's forgoing a new television because of his dollar-based mortgage. His monthly payments have risen by 18 percent, or 1,000 hryvnias ($167), since he took out the loan seven months ago. No NEW TELEVISION SET!

7. International Trade, Day 167 Similar stories in the article “I only have money to pay for food and my monthly fee to the bank,'' Voloshyn, 25, said. “I can't even dream about anything else.'' “I only have money to pay for food and my monthly fee to the bank,'' Voloshyn, 25, said. “I can't even dream about anything else.'' The bulk of eastern Europe's credit boom was denominated in foreign currencies because they provided for cheaper financing. The bulk of eastern Europe's credit boom was denominated in foreign currencies because they provided for cheaper financing.

8. International Trade, Day 168 Lower Interest Rates Abroad Before the current financial turmoil, Romanian banks typically charged 7 percent interest on a euro loan, compared with about 9.5 percent for those in leu. Romanians had about $36 billion of foreign-currency loans at the end of September, almost triple the figure two years earlier.

9. International Trade, Day 169Hungary In Hungary, rates on Swiss franc loans were about half the forint rates. Consumers borrowed five times as much in foreign currencies as in forint in the three months through June. Budapest, Hungary

10. International Trade, Day 1610 Borrow at lower interest rates If borrowers believe local interest rates are prohibitive and foreign currency lending dries up, … … it means “a sharp deceleration in consumer spending,'' Siller said. “That will bring serious problems for the economy.''

11. International Trade, Day 1611 Europe’s Fastest Growth The east has been the fastest-growing part of Europe, with Romania's economy expanding 9.3 percent in the year through June, Ukraine 6.5 percent and Poland 5.8 percent. The combined economy of the countries sharing the euro grew 1.4 percent in the period.

12. International Trade, Day 1612 Turkey, on the other hand, … At the other end of the spectrum, Turkish consumers have proved more cautious after living through their own currency crises in 2001 and 1994. The government, the IMF's biggest customer in recent years, is resisting new loans from the fund, arguing that its economy can weather the credit crunch and a 22 percent slump in the lira since the start of September.

13. International Trade, Day 1613 Turkey, on the other hand, … Turkish savings in foreign currencies exceeded loans by about 30 percent as of the end of 2007, according to a January Fitch report. In Poland foreign exchange loans were double deposits, and in Hungary they were triple. Remember our adage? Save for investment or borrow abroad!

14. International Trade, Day 1614 Turkey, on the other hand, … Mert Sevinc borrowed the equivalent of $100,000 in Turkish liras to buy an Istanbul apartment in 2006, paying an annual rate of 13.5 percent. The marketing consultant didn't even look at the foreign exchange loans at less than half that price. 13.5 percent13.5 percent Remember our adage? Save for investment or borrow abroad!

15. International Trade, Day 1615 Turkey, on the other hand, … “Of course it would have been cheaper to borrow in dollars or euros, but it's a fairly basic principle of finance: Things that are cheaper are riskier,'' he said. “Of course it would have been cheaper to borrow in dollars or euros, but it's a fairly basic principle of finance: Things that are cheaper are riskier,'' he said. That reasoning may soon be part of the eastern European psyche too. That reasoning may soon be part of the eastern European psyche too.

16. International Trade, Day 1616 Learning a hard lesson? “We've been observing a return to a good old banking rule to lend in a currency in which people earn,'' said, chief executive officer of Poland's biggest lender. “We've been observing a return to a good old banking rule to lend in a currency in which people earn,'' said Jan Krzysztof Bielecki, chief executive officer of Poland's biggest lender.