"Liquidity Explained Assets and investments your company owns have financial value. And liquidity indicates how quickly you can access that money, if you need to. Assets range in their liquidity. For example, you may have equity in a building your company owns. But that equity is not very liquid because it would be difficult to convert it to cash to cover an unexpected and urgent expense. On the other hand, inventory that you expect to sell in the near future would be considered a liquid asset." (www.netsuite.com)
One of the most critical parts of finance is managing liquidity. As the US opened the free market to the world, what the world is facing is somewhat different than the expectation or planned. Foreign investment is only profitable when the liquidity is always possible with the convenience. It does not matter how advanced our technology in finance, the common sense or human nature does not change.