Asian crisis : trade and trade policy consequences

Trade was a factor in the Asian crisis. As the Asian trade engine lost steam, the growth track slowed, the external position of Thailand worsened and the corporate sector in Thailand and Korea weakened. This weakness naturally spread to the financial sector of these countires. // Trade also had a role in the upturn of the crisis: intra-regional trade provided substantial support to the external adjustment of Asia; and the growth of import demand from the United States and Europe, more than compensated the near collapse of Japan's imports from Asia. // The Asian crisis is beginning to have other, and perhaps more long-lasting effects on the world trading system because of the reassessment of trade strategies, particularly in the context of regional integration. As a result of the changes, particularly in exchange rate regimes, the Asian crisis has put severe strains on both pan-Asian regional integration and the Mercosur common market strategies