Analysis #2

For this analysis assignment, your objective is to connect the abstract concepts we covered in class with the concrete example provided in  #235, Managing the Asian Meltdown and #276, Saving the Coffee Industry in El Salvador.  You are limited to 3 pages typed, following the evaluation criteria detailed in your course syllabus. 

The international monetary system and international trade system are interdependent global phenomena.  Both South Korea and El Salvador faced similar challenges in developing their economies despite their different conditions, histories, and approaches. 

The coffee industry exemplifies the difficulties developing economies face when reliant on cash crops, while an export-based economy requiring financing--even if it's state financing (i.e. that the country was borrowing or receiving investments to promote its domestic industry) describes the situation of many emerging economies.  Using the cases, demonstrate three ways that the interconnectiveness of the monetary and trade systems affects countries.