Essay on Commanding heights episode 3

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Commanding Heights Episode 3 Commanding heights: The New Rules is the third film in the series and is about the 21st century economy. PBS sponsored the film under the direction of Michael Sullivan to inform the public about the economic situation. They speak about how the economy adapted to what is today. How the world nationalized third world countries allowing exchange and investment. Episode 3 addresses the current and future problems of a globalized world. That's the structure of the film. The film clearly, thoroughly, and excitingly explains this through historic facts and stories told by citizens who lived during the changes. This is not an economics lesson but rather a high dramatic event that impacts peoples lives. Commanding …show more content…
In 1994, Mexico faced political and economic crisis, and the country came to the brink of defaulting omits foreign debt. There was real fear that the country, left to its own devices, could fall into chaos, and millions of refugees would head north into the U.S. Clinton had crisis meetings with his advisors over the issue and decided to give Mexico a $50 billion loan. It worked to stabilize the country, Mexico repaid the money ahead of schedule, and the U.S. looked like a benevolent actor to the world. However, many critics considered Clinton’s actions to be a prime example of moral hazard: By bailing out the Mexican government, the U.S. was in essence bailing out thousands of private investors who had put money into the country without properly weighing the risks.
The bailout signaled the private sector that it could make similarly bad future investment choices without fear since the U.S. would again rescue them. Critics feared this would make sovereign debt crises more likely. “Globalization” is defined as the free flow of goods, services, capital, and labor across national borders. China has a number of “Free Trade Zones,” which are small geographic areas in which companies can build factories to build and export anything with very few restrictions. The Zones are exempt from China’s otherwise strict business and export laws. Seaports and airports are usually located very close