Then, there's also the question of leading edge technology, etc. Thus, whether or not exposed to external trade, there are only a few firms in the world from which one can purchase, e.g. pcr equipment or sequencing technology. Ditto the family of ICT goods. And these are usually priced in USD, and in a world market at exchange rates. E.g., Dell's low-end computers sell in the US at, say, USD800, and in Malaysia for around RM3,000 -- compare that to GDP/cap at local currencies.
-Right, but, besides those items, countries like South Korea also -depend on the external market to feed their own population. Not -to mention energy. Countries like India or Brazil, whose imports -are about 10-15% of GDP are much less vulnerable to sudden changes -in external markets (but also slower in benefiting from a booming -external marketing)
[quote] As for crisis followed by sharp recovery -- part of that, maybe a good part, is just a statistical thing. But in this day and age, when change comes fast and furious, a crisis may also be reflective of a change in the world deployment of capital, and unless you are in the 'transnational elite' or some such like, you will likely find, as a country/region, that it's suddenly harder to make a living. To a large degree, I think that's what's happened in SE Asia, including Singapore whose currency was minimally affected by the 1997-98 financial crisis.[/quote]
-Are you arguing that living standards in SE Asia worsened despite the recovery? Could you add more information? -Btw, where are you from?
Alexandre
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