Most analysts feel that the financial difficulties in East Asia were triggered by

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The financial difficulties in East Asia were triggered by the misallocation of investment, particularly in real estate and infrastructure projects, leading to overcapacity and oversupply. This caused a decrease in demand and led to the collapse of many businesses and financial institutions. Additionally, there were also issues with corruption and cronyism in some countries that contributed to the crisis.

B, C, and D may have also played a role in the crisis, but they were not the primary triggers. The unavailability of cheap foreign labor may have affected the competitiveness of certain industries, but it was not the main cause of the crisis. The lack of alignment of exchange rates with the dollar may have contributed to currency volatility, but it was not the root cause of the crisis. Surpluses in trade accounts may have been unsustainable, but they alone did not trigger the crisis.

Most Analysts Feel That the Financial Difficulties in East Asia