Contagion

The likelihood of significant economic changes in one country spreading to other countries. This can refer to either economic booms or economic crises.


An infamous example is the "Asian Contagion" that occurred in 1997 and started in Thailand. The economic crisis in Thailand spread to bordering southeast Asian countries and then eventually spilled over to Latin America.



Contagion of Financial Crises - An indepth depth description of contagion and the causes of it from the World Bank.

What Is An Emerging Market Economy? - What are emerging market economies, and are the potential rewards for investors worth the risks?

Investing Beyond Your Borders - Investing abroad poses risks, but can also help you diversify. Discover ways to invest in foreign stocks.
Related Terms

Association of Southeast Asian Nations - ASEAN

Boom

Country Risk

Tiger Economy

Trade

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