by Chan Sui-wing, Francis. / Bibliography: leaves 61-62 / Thesis (M.B.A.)--Chinese University of Hong Kong, 1985

The present study is an attempt to better understand change in international relations through utilization of the concept of international regimes. The following chapters focus on creation of the international lending regime and change that has occurred within this regime. The work begins by reviewing the regime literature, noting definitional and conceptual problems of the approach. The review concludes with examples of regime scholarship that are utilized through the rest of the study. Examination of international lending as a regime consists of three sections: first, a profile of the creation of the United States-led, post-war multilateral lending regime; second, the replacement of U.S. geo-political concerns with a market emphasis desired by international banks; third, the more recent redirection of lending as the utility of market forces is constrained by adjustments necessary to facilitate emergency debt restructuring.

This study is concerned with the relationship between the accumulation of Poland's massive hard-currency debt, from 1970 to 1983, and changes in American economic and political policy toward Poland. Prior to and during the 1970s, a tacit American policy of promoting economic and political ties with Poland can be discerned. But the domestic problems Poland exacerbated by mismanaging its debt to the West and the consequent declaration of martial law in 1981 led to the current discriminatory American policies of economic sanctions against Poland. As a result of this policy shift long-standing American political goals in Poland have been compromised.

This thesis attempts to analyze the market response of stock prices of major U.S. banks to the February, 1987 Brazilian loan default announcement. The study's general hypothesis is that the market revalued stock prices according to each bank's amount of Brazilian loan exposure. The first chapter examines the significance of the default announcement. A survey of related literature is presented in the second chapter. Chapter III specifies the methodological techniques involved in analysis of the data. Chapter IV reports the findings of the study. Conclusions about the results are drawn in Chapter V. The results indicate the market is efficient. They also suggest that individual exposure was the major determinant of bank stock price decline.