What is the domino effect or contagion, International Economics

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Q. What is the domino effect or contagion?

Answer: The definition is the defencelessness of even seemingly healthy economies to crisis of confidence generated by events elsewhere in the world. Must provide examples like the Thai crisis which provoked another crisis in South Korea a much larger economy some 7,000 miles away Or the Russian crisis sparking huge speculation against the Brazil's real.


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