Once the crisis was apparent, financial managers of MNEs should rationally stop expansion of local facilities
and try to repatriate cash balances in local currencies, if possible. This would cause the financial component of
the balance of payments to worsen for the countries involved. For companies manufacturing for local
consumption, a drop in local demand, possibly caused by an increase in costs if imported components were
needed, would lead to cut backs in production and resultant unemployment, making the crisis-caused depression
even worse