POL208Y5 Lecture Notes - Lecture 13: Exxonmobil, Portfolio Investment, European Debt Crisis
Document Summary
Collective aciton: regulating supply, so that it"s supply driven. Why it is that state restrict trade: there are companies that get very affected by free trade, competing with export prices. Prisoner dilemma financial conflicts, both sides are incentivised to cheat in some way. Dominance of developed countries over non-developed countries. The european sovereign debt crisis- 4 main countries (pigs) p- portugal, i - Massive housing booms, mortgages, people taking on insane amount of debt, - domestic banks. Irish banks run out of money, begin borrowing money from other places, german and french. Ireland housing bust, now the houses are not worth the same amount that they used to, now need to sell houses. Irish bank, owes german, germany want their money, both put pressure on their governments. Basically same thing different areas for the other pigs. What is international finance two types of investments: portfolio investment stocks/equities, bonds, direct investments managerial control over the investment,- run the factory hire people.
