The contagion effect also challenges Asian countries. A sudden exit of capital could cause a country’s economy and financial markets to collapse, resulting in a spillover effect on other parts of the region. One way to deal with this problem is to develop a new frontier of regional cooperation in Asia, particularly for the development and integration of financial markets. A bigger market could also be established to absorb the volatility of international capital. However, such integration is still a long way from meeting its aims, mainly due to political pressures and issue, opinion divergence, and wide gaps in economic fundamentals among the Asian economies.