Financial Markets: International Context

1
Financial Markets International Context

• Dr Richard Fairchild,
• mnsrf_at_bath.ac.uk

2
Objectives of Course

• To give students an introduction to International
  Financial Markets.
• The purpose of Financial Markets.
• The issues involved.
• The Key Players.
• The regulatory Bodies.
• The impact of the emerging markets.

3
In Summary

• Two main aims
• How Financial Markets work globally.
• To what extent should they be regulated, and by
  whom?

4
Recommended Textbook

• An Introduction to Global Financial Markets
• By Stephen Valdez

5
Course Structure

• Raising Capital Debt and Equity.
• Banking/ The role of the Central Bank.
• Investment banks and Regulation.
• Bond Markets.
• Stock Exchanges and Regulation.
• International Trade and Markets.
• Investor Protection around the World.
• Hedge Funds, Private Equity, venture capital and
  regulation.
• Role of Regulatory Authorities (FSA)
• Derivatives.
• New Tiger Economies.

6
Lecture 1Raising Capital Debt and
Equity(Valdez Ch 1)

• What is the purpose of the Financial Markets?
• Raising Capital matching lenders and borrowers.
• Intermediaries (eg Banks) Depositors gt
  borrowers.
• Stock Markets.
• gt Companies issue shares to investors.
• Shares freely bought and sold in the market.

7
Who are the Borrowers?

• Individuals (eg bank loans, mortgages).
• Companies (for growth and expansion).
• Governments PSBR.
• Others (local authorities,municipalities,
  counties, federal states)

8
Who are the lenders?

• Individuals (eg savings in banks pension fund
  contributions investors in equity/shares)
• Companies (lending in short-term markets money
  markets).

9
Individuals Lending (investing) decision

• Portfolio analysis Individuals allocate their
  wealth across equity and bonds.
• We will examine this in more detail in later
  courses!

10
Companies Methods of Financing.

• Borrowing from Banks (Bank Loans).
• Issuing Bonds.
• Issuing Equity (shares).
• Primary Market.
• Secondary Market.

11
Providers of capital to firms Expected returns
and Investor Rights.

• Banks and bondholders First claimants,
  generally fixed returns required (interest). If
  not paid, these holders have strong rights (eg
  liquidation, bankruptcy).
• Equity-holders Returns are risky! Very few
  rights (but voting) Capital gains and dividends.
  Shareholder is part-owner of the business.

12
Financial Markets as a clearing mechanism

• Investors (lenders) decide how to allocate their
  wealth across securities (financial instruments
  such as shares and bonds).
• Companies (borrowers) decide how to finance
  expansion/growth/new projects by issuing shares
  and bonds.

13
Firms financing decision.

• Leverage The amount a firm borrows in relation
  to equity.
• In principal, nothing wrong with borrowing.
• Enables firm to invest and grow.
• However, too much borrowing gt problems? Credit
  ratings.
• Stock Market Analysts look at firms gearing
  ratio.

14
Risk and return (not in text book)

• The higher the risk, the more return
  lenders/investors require as compensation.
• Therefore, safe bonds have lower required return
  (interest rate) than risky equity (volatile
  capital gains and dividends).

15
Firms financing mix.
Equity-holders required return

Equity-holders required return
Risky Debt
Lenders Required return on safe bonds
D/E
D/E
We will revisit these diagrams in later courses!
Downgraded Credit rating
16
Market Failure/regulation.

• So, financial markets provide an efficient
  mechanism for equating supply and demand of
  financing? gt economy maximising growth
  potential? gt fair allocation of wealth? gt
  correct incentives for investors to provide
  finance?
• Not necessarily!

17
Market failure.

• Moral Hazard problems.
• Adverse selection problems.
• Credit constraints.
• Credit cycles.
• Credit chains/contagion.
• Bank runs.
• Inefficient capital markets.

18
Moral Hazard

• Managerial self-interest/diversion/stealing of
  funds.
• Shirking behaviour.
• Fraud (eg Enron, Parmalat etc).
• Role of regulatory authorities (eg FSA).

19
Adverse Selection.

• Unobservable poor quality management/
  Incompetence!
• gt Credit constraints.

Rate if Bank can observe qualities.
Bank Lending Rate.
Pooling Rate
Increasing Risk of borrowers.
20
Credit Cycles/chains/contagion

• Credit chains- macroeconomic cycles amplified!
• Contagion/ bank runs (Northern Rock?).
• Systemic risk.

B
C
A
D
21
Bank Runs.

• Self-fulfilling!
• Mary Poppins syndrome!

22
Inefficient capital markets

• Market values often different from fundamental
  values.
• gt Insider trading.
• gt very high volatility.
• FSA investigates abnormal share price movements
  (eg Biffa recently).

23
Increasing Globalisation of Financial Markets.

• Increases investors opportunities.
• Increases Firms financing scope (cross-listing).
• But increase in risks (systemic)/contagion/effect
  of cycles?
• Increased need for global regulation?

24
Lecture 2Banking System

• Central Banks eg Federal Reserve in US
  Bundesbank in Germany
• Commercial Banks taking deposits/lending money.
• Investment Banks helping corporations find
  money.
• Savings Banks
• Cooperative Banks.
• .
• .

25
Banks Balance Sheet

• Liabilities (Where the money comes from)
• Shareholders equity/retained profit
• Deposits (largest figure)
• Borrowings (eg a bond issue)
• Assets (how the money has been used)
• Notes/coins.
• Securities/ money market funds/ fixed assets
• Lending (largest figure) gt credit creation.

26
Creation of Credit

• Banks have great ability to create credit.
• Banking depends on confidence.
• Governments and central banks will want to
  control credit creation. Why?
• Banks internal controls liquidity ratios.
• External control by bank supervisors capital
  ratios.

27
Money Supply

• M0, M3, M4.
• Interest rates, inflation, economic activity.
• Central Bank weapons mandatory reserves,
  interest rates, open market operations.

28
Liquidity Ratios

• Internal control method.
• Take all deposits and lend as 3 year personal
  loans? NO!!!
• LR percentage of deposits to be held as cash.
• Central bank can also impose this (eg Spain).

29
Capital Ratio

• The external ratio imposed by bank supervisors.
• Major issue in banking
• Prudence.
• Banks lend money, some people default.
• Capital is a buffer against this.
• CR relationship between capital and lending.

30
Capital Ratio (continued)

• Bank should not be excessively exposed to a few
  key borrowers.
• Eg Johnson Matthey Bank (UK) lent 115 of its
  capital to 2 key borrowers.
• 1987 Banking Act.
• Central Banks large exposure controls.
• Basel Committee gt uniform banking regulation gt
  capital ratio.
• Banks credit ratings.

31
Increasing capital ratio

• Find more capital (rights issue, reducing
  dividends, other forms of capital).
• Reduce assets (selling off subsidiaries, selling
  off loans to other banks, converting assets into
  securities (securitisation).

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Central Bank Reporting

• All banks in a country must make detailed reports
  to the Central Bank.
• gt liquidity.
• Large exposures.
• FX exposure.
• Capital expenditure.
• Balance sheet.
• Profit and loss.

33
Lecture 3 Role of the Central Bank/ Investment
Banks

• History 160 Central Banks in the World,
  employing 352,000 people.
• Consider 7 Major Central Banks China, France,
  Germany, India, Japan, UK, US, European Central
  Bank (ECB).

34
Central Bank Activities

• Supervision of the Banking System.
• Advising the Government on Monetary Policy.
• Issuing Banknotes.
• Banker to other banks.
• Banker to the Government.
• Controlling the Nations currency reserves.
• Lender of last resort.
• Liaison with international bodies.

35
Position of Central Bank.

• Last decade- a rise in power and influence.
• Central Banks have become independent gt ECB.
• Accountability?
• Inflation/growth/unemployment.

36
Lender of Last Resort

• Guarantee of Rescue gt Moral Hazard (imprudent
  behaviour by banks).
• Walter Bagehots quote
• We will encounter moral hazard in many forms in
  later finance courses!

37
Other banks.

• Commercial Banks accept deposits/ make loans.
• gt retail banks
• gt wholesale banks.
• Investment Banks

38
Key Retail Banking Issues

• Growing Competition (growing de-regulation)
• Cost Control
• Sales of Non-banking Products.
• Use of IT.

39
Growing Competition

• Other Financial Institutions.
• Retailers.
• Insurance Companies.
• In-house Corporate Facilities.

40
Bank Lending

• Uncommitted facilities gt
• Overdrafts.
• Lines of Credit.
• Bankers Acceptances.
• Committed Facilitiesgt
• Term Loans.
• Standby Credit.
• Revolving Credit.
• Project Finance (eg Eurotunnel).
• Syndicated Facilities.

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Investment Banks.

• Accepting
• Corporate Finance (new issues- equity/bonds,
  rights issues, M and A, Research).
• Securities Trading
• Investment Management
• Loan Arrangement
• Foreign Exchange

42
Investment Banks-Corporate Finance Role

• New Issues Equity/bonds (pricing, selling to
  investors, underwriting, general advice regarding
  regulations). Close liaison with layers and
  accountants.
• Rights Issues Priced/underwritten.
• Mergers and Acquisitions (help bidders with
  price, timing, tactics. Help target defend).
• Research reputation important.

43
Banking regulation.

• Commercial Banks risk depositors money if they
  invest in stock market.
• US Wall Street Crash 1929 Glass-Steagall Act
  1933 deposit protection scheme gt Federal
  Reserve Bank greater powers of supervision.
• Separated commercial and investment banking.
• Glass-Steagall act repealed in November 1999.
• Research Question Role of the Treasury?

44
Research Question.

• Discuss the dangers in Commercial Banks
  undertaking securities trading. Should the
  activities of commercial banks and investment
  banks be separated?

45
Lecture 4/5/6 Securities Markets.

• Money and Bond Markets.
• Stock Exchanges.
• Regulation of Stock markets.
• Cross-listing.
• Investor Protection around the World.
• Hedge Funds and Private Equity.

46
Lecture 4 Money and Bond Markets.

• Rate of Interest price of money.
• Risk gt lender expects a greater reward for
  higher risk.
• OECD countries or US government
• gt lowest rate of interest applies to government
  transactions (safest!).
• Govt rate is benchmark for other rates.
• US corporate may borrow at Treasuries plus 1.

47
Maturity and the yield curve
r

Time (months)
But may be downward-sloping! Expectations. Liquidi
ty. Supply and demand.
48
Bond Yields

• Yield
• Par Values
• Coupon
• Gross redemption yield
• Accrued Interest.
• Volatility.

49
Credit Ratings

• Creditworthiness gt Rate of Interest
• Credit-rating Agencies.
• AAA, AA, A, BBB, BB, B, CCC, CC, C, C1, D.
• Junk Bonds.

50
Who Controls the Raters?

• Imperfect Information.
• Incentive for company to pay agency for full
  rating to get a good one
• March 1996 Moodys investigated by US justice
  department
• Reputations!
• Research Question Discuss the problems involved
  in companies paying for credit rating?

51
Domestic Money Markets

• Call money.
• Interbank Market (LIBOR).
• Money Market Securities.
• Treasury Bills.
• Etc
• Role of the Central Bank.

52
Domestic Bond Markets.
53
International Markets.
54
Role of the Central Bank in Money Markets.

• Lender of Last Resort.
• Helping Commercial Banks with Liquidity Problems.
• Discount Rate, Lombard rate, open market
  operations.

55
Bond Markets.

• Government Bonds.
• Corporate Bonds
• Debentures/convertibles.
• Bond name of the bond, nominal or par value,
  redemption value, rate of interest, redemption
  rate.
• Bond Maturity short, medium, long.

56
Lecture 5 Stock Exchanges.

• What is the role of a Stock Exchange?
• How are Stock Markets regulated?
• Cross-listing.
• Investor Protection around the World.

57
Role of the Stock Market.

• To provide the regulation of company listings.
• To provide a price formation mechanism.
• To supervise trading.
• Authorisation of members.
• Settlements of transactions.
• Publication of trade data and prices.

58
Bonds versus equities in the market

• Equities have higher number of transactions.
• Bonds have higher value.
• Eg In UK, average domestic equity deal
  50,000.
• Average Government Bond Deal 3m.
• Which are the worlds biggest stock exchanges?
  (Pg 162 Valdez table 7.1).
• Market value? Turnover? Equity turnover?

59
Indices
60
Who Owns Shares?

• Small Investors Versus Institutions.
• Pension Funds.
• Equity Investments.
• Mutual Funds.
• Active Versus Passive Fund Mgt.

61
Dealing Systems

• Order-Driven Systems.
• Quote-Driven Systems.
• Hybrid.

62
International Equity

• 1980s, 1990s Cross-listing of MNCs.
• gt large expansion in primary issues and
  secondary market trading in non-domestic
  equities.
• Eg German accounting rules not so strigent as
  US
• But Daimler-Benz listed in New York accepted
  need for greater transparency.
• French firm AXA listed on US stock exchange in
  1996.
• Research Question Why do countries cross-list?

63
Sarbanes-Oxley (SOX)

• Following Enron SOX makes managers fully
  responsible for maintaining adequate ICS and FR.
• Rules for audit and accounting.
• Research question Will SOX work?

64
Miscellanous features.

• Stock Borrowing (going short) and lending
• Bought Deals/block trades.
• Share buybacks.
• New issues.
• Rights issues.
• Scrip issues and splits.
• Scrip Dividends.
• Second Markets eg AIM (UK).
• Over the counter.

65
EU Rules.
66
Alternative Stock Markets.

• Tradepoint (UK).
• ECNs (US).

67
Lecture 6 International Finance.

• Foreign Exchange (briefly!).
• International comparisons of investor
  protection/corporate governance.

68
International Trade.

• Foreign Exchange.
• Importers/exporters.
• Tourists.
• Government spending abroad (eg Troops)
• Speculators.
• Banks and Institutions.
• Looser Exchange controls gt Fund managers
  investing in foreign equities and bonds gt
  exchange rate risk.

69
Drivers of exchange rate risk.

• PPP (Purchasing Power Parity).
• In theory, Basket of goods priced at 10 in UK
  and 20 in US gt exchange rate 1 2. gt
  stability of exchange rates
• But Market imperfections/Barriers to
  trade/tariffs/ERM.
• Psychology of the market herd instinct.
• gt exchange rate volatility.

70
Exchange rate Risk.

• Bretton Woods 1944.
• gt Exchange rate stability.
• IMF 1946
• The World Bank (IBRD).
• IFC.
• IDA.
• EEMU.
• Use of Options to reduce risk.

71
Investor Protection around the World (not in
textbook)

• Civil Law versus Common Law Countries.
• Bank-dominated versus Capital Market-dominated
  countries.
• Developed V emerging markets.
• Dispersed or concentrated ownership structures.
• Effect on market development, capital structure,
  dividend policy etc.
• La Porta et al papers

72
Research Question.

• Which type of market should lead to the best
  stock market development?
• Specific example share repurchases.

73
Investor Protection and Corporate Governance (La
Porta et al).

• Large differences among countries in
• A) ownership concentration
• B) Breadth and Depth of Capital Markets
• C) Dividend Policies.
• D) Access of Firms to external finance.

74
Investor Protection and Corporate Governance
(continued).

• Common explanation for differences gt
• Legal Approach How well investors (creditors
  and shareholders) are protected by law from
  expropriation by firms managers and controlling
  shareholders.
• Financial systems approach Bank-centred versus
  Market-centred.
• La Porta et al favour legal approach.

75

• Legal protection of investors affects-
• Breadth and depth of capital markets.
• Pace of new security issues.
• Corporate ownership structures.
• Dividend policies.
• Efficiency of investment allocations.
• Different patterns across countries.

76

• Why is investor protection important?
• Widespread expropriation of minority shareholders
  and creditors by controlling shareholders
  (insiders).
• Corporate governance mechanisms for outside
  investors to protect themselves.

77
Managerial Expropriation

• Insiders steal the profits.
• Transfer pricing.
• Asset stripping.
• Investor dilution.
• Diversion of corporate opportunities form the
  firm.
• installing unqualified family members
• Overpaying top executives (Cadbury report).

78
Legal Protection of investors

• Legal approach emphasises laws and enforcement.
• Strong legal system gt firms can raise more funds
  in some countries than others.
• Investors more vulnerable to expropriation than
  employees or suppliers (why?)

79
Cash flow rights versus control rights.

• Researchers recognise that securities give both
  cash-flow rights and control rights.
• Jensen and Meckling Managers incentives not to
  expropriate increase with managerial equity
  (cash-flow rights).
• Grossman and Hart investor power Versus insiders
  (control rights)
• Both JM and GH well-defined contracts specifying
  investor rights.

80
Incomplete contracts

• But contracts incomplete.
• Therefore legal system becomes important.
• Concentration of ownership.
• Large managerial equity holing good incentives
  due to cash-flow rights
• But entrenchment bad (control rights).

81
Investor protection.

• Equity-holder rights include
• Disclosure and accounting rules.
• Receive dividends on a pro-rate basis.
• Vote for directors
• Shareholder meetings.
• Subscribe to new issues on same terms as
  insiders.
• Sue directors.
• Call extraordinary meetings.

82
Creditor Rights

• Bankruptcy and re-organisation procedures
• Repossess assets.
• Protect seniority of claims.
• Force reorganisation.

83
Different sources of investor protection

• Company laws.
• Security laws.
• Bankruptcy laws.
• Takeover laws.
• Competition laws.
• Stock exchange regulations and accounting
  standards.

84
Enforcement of laws.

• In most countries, laws and regulations enforced
  partly by
• market regulators.
• Courts.
• Market participants themselves.
• Without effectively enforced rights, financing
  mechanisms break down (why?)

85

• Law and Economics approach to financial
  contracting
• Regulation of financial markets unnecessary.
  Entrepreneurs will voluntarily commit to
  contracts.
• But contracts incomplete!!!
• So, law and regulation IS important.

86
Law and Finance (La Porta et al)

• Legal rules, protection of investors, origin of
  these rules, and quality of enforcement in 49
  countries.
• Common law countries have the strongest
  protection of investors.
• French civil law countries have the weakest
  protection.
• German and Scandinavian civil law countries in
  the middle. Why?
• See table 1.

87
Common law versus civil law countries.

• Civil law gt greater government intervention in
  economic activity/ lower investor protection.

88
Consequences of investor protection

• Ownership structure of firms.
• Development of financial markets.
• Allocation of real resources.

89
Investor protection and ownership structure of
firms.

• Low investor protection gt large ability to
  expropriate gt control has enormous value.
• gt leads to concentrated or dispersed ownership
  of equity?
• Some researchers poor investor protection gt
  concentrated control.
• Other researchers poor investor protection gt
  dispersed control Consider why?
• Empirically poor investor protection gt
  concentrated control (substitutes V complements?)

90
Investor protection in East Asia(Claessens et
al 2000)

• Apart from Japan (good investor protection)
• Bad investor protection gt large family/state
  control.
• Crony Capitalism
• Fundamental agency problem not between outside
  investors and managers,
• But between outside investors and controlling
  shareholders.

91
Corporate Ownership around the World (La Porta et
al)

• See paper.

92
Investor Protection and Corporate valuation (La
Porta et al)

• Effect of legal system and ownership structures
  on corporate valuation.
• Theory and evidence.
• Higher valuation of firms in countries with
  better investor protection.
• Better legal protection of outside investors gt
  willing to finance firms gt financial markets
  broader and more valuable.

93
Legal system/ownership structure

• Managers have cashflow rights (affects
  incentives) and control rights gt expropriate
  large private benefits.
• Better legal protection gt managers are limited
  in their expropriation abilities.
• Concentrated ownership gt entrenchment
• But, higher cashflow rights gt less expropriation.

94
Various tables from the paper.
95
Lecture 7 Hedge Funds, Private Equity, and
venture capital.

• Hedge Funds Very controversial and much-debated.
• Collapse of Long Term Capital Management.
• Private Equity takeover of RJR Nabisco by KKR in
  the late 1980s.
• Barbarians at the Gate.
• Venture capital alternative funding mechanism
  for start-ups

96
Venture Capital

• New entrepreneurial start-ups Extreme
  uncertainty/high risk
• gt difficult to obtain finance from banks or the
  general public.
• Venture capitalists specialise in financing such
  ventures gt potential large capital gains at IPO.
• VCs active investors extreme agency problems gt
  BVCA.

97
Private Equity

• VCs early stage companies.
• MBOs highly leveraged.
• PE gt high ownership stake for management.

98
Hedge Funds.

• Actively managed investment fund
• Seeks a high absolute return (whether markets go
  up or down).
• In contrast to an index tracker.
• Wide variety of complicated investment
  strategies.
• Not designed for retail investor, but for high
  net worth individuals or institutions.

99
Common hedge fund strategy

• Short-selling (selling a security we do not own
  gt borrow the security).
• Plus high leverage (why?)
• First hedge fund AW Jones and Co, in 1949.
• Other Hedge funds Warren Buffet 1950s.
• George Soros Quantum Fund 1974.

100
Hedge Fund Strategies.

• Equity Hedge Funds.
• Global Asset Managers.
• Relative Value Arbitrage.
• Event-driven Investing.
• Short sellers.

101
Should hedge funds be regulated?

• Investor protection?
• Destabilising the market?
• Systemic Risk?
• Inside information?
• See Paper by Noyer.

102
Regulation of Hedge funds?

• Bank of England Seeks self-regulation (voluntary
  code).
• FSA update of regulation of hedge funds.

103
Lecture 8 Regulatory authorities.

• Treasury.
• FSA.
• Research Question What is the FSAs role in
  regulating financial markets?

104
FSA

• CBA of regulation (paper by Alfon and Andrews).
• Market Cleanliness (paper by Monteiro, Zaman, and
  Leitterstorf).

105
CBA

• FSA has taken over the functions of 9 existing UK
  financial regulators.
• FSMB.
• gt CBA analysis of financial regulation.
• SIB established a CBA department in 1994 to
  advise on costs and benefits of regulation of UK
  investment business.
• CBA gt more or less regulation?

106
CBA in FSA (continued)

• CBA can improve firms compliance culture.
• Enhance regulatory agencies accountability.

107
CBA in FSA (continued)

• Requirements of FSMB gt FSA has 4 statutory
  objectives, and 6 other aims.
• Are the benefits proportionate to their burden?
• Innovation.
• UKs competitive position.
• CBA useful tool for FSA trade-offs between
  statutory objectives and economic matters.

108
FSAs requirements

• FSA required to publish a CBA whenever impact of
  regulation likely to be high.
• FSA over-complies?
• CBA requires quantitative estimate of costs, but
  not benefits.
• Qualitative Benefits can be assessed
• gt Pragmatic approach to CBA.

109
Economics of Regulation

• Regulation a monopoly good supplied at no
  explicit charge.
• Over-demanded? Not actually needed?
• Regulation can have significant impact on markets
  and welfare.
• Eg excessive regulation in the US gt Eurodollar
  market ? (Investigate!)

110
Economics of Regulation (continued)

• Non-use of CBA can lead to unintended bad
  side-effects.
• Eg a regulator reduces the freedom of banks in
  order to reduce systemic risk.
• But gt lack of bank innovation and investment.
• Option Comparison.

111
CBA

• Theoretical and practical problems.

112
FSAs analytical CBA Framework- six stage process

• Decide Scope and Depth of the analysis (how many
  options to consider?)
• Likely effects of each option.
• Qualitatively compare the effects of each option.
• Reject inferior options.
• Estimate Costs and assess benefits of remaining
  options.
• Provide an output to illustrate costs and
  benefits of the options under consideration.

113
Impact Analysis

• 6 impacts
• Direct Costs.
• Compliance Costs.
• Quantity of Good sold.
• Quality of goods offered.
• Variety of products offered.
• Efficiency of Competition.

114
Assessing the costs of financial regulation.

• Direct costs.
• Compliance Costs
• Indirect costs (negative market impacts eg
  reduced competition gt higher charges, costs of
  imposed uniformity, moral hazard).
• (Incremental Costs).

115
Assessing the Economic Benefits of Financial
regulation

• Correction of Informational asymmetries between
  buyers and sellers.

116
Market Cleanliness

• FSA has a statutory objective to maintain
  confidence in the Financial System.
• Efficient, orderly and fair markets gt delivering
  value to users and providers of financial
  services.
• FSAs main aim Reduction of market abuse in the
  UK.

117
Market Cleanliness

• Extent to which informed stock price movements
  are observed ahead of significant price-sensitive
  announcements.
• gt price movements could indicate insider trading
• Eg BIFFA in January 2008?

118
Market Cleanliness (continued)

• Insider trading is just one form of market abuse.
• Abuse in equity and non-equity markets?
• CBA of insider trading regulation?
• gt Financial markets built on trust. Insider
  trading erodes trust.

119
Market cleanliness (continued)

• FSMA (2001)
• gt Civil regime for prosecuting market abuse.
• Disclosure rules.
• FTSE350 listed companies no change in market
  cleanliness after FSMA implemented?

120
Lecture 9New Tiger Economies.