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Foreign Investment During the Recent Global Economic...
Foreign Investment during the recent global economic recession
ABSTRACT:–
The year 2008 marked the end of a growth cycle in international investment that started in 2004 and saw world foreign direct investment (FDI)
inflows reach a historic record of $1.9 trillion in 2007. Since then FDIs have been decreasing. The fall in global FDI in 2008–2009 is the result of two
major factors affecting domestic as well as international investment. First, the capability of firms to invest has been reduced by a fall in access to
financial resources, both internally – due to a decline in corporate profits – and externally – due to the lower availability and higher cost of finance.
Second, the propensity to invest has been affected negatively by ... Show more content on Helpwriting.net ...
The proposed Xstrata takeover of a South African mining conglomerate was put on hold as the financing was harder due to the credit crunch . There
are several other examples e.g. in India .
In the face of the global economic slowdown (and recession in a number of major economies), tighter credit conditions and falling corporate profits,
many companies have announced plans to curtail production, lay off workers and cut capital expenditure, all of which has implications for FDI
.However, the impact of the crisis varies widely, depending on region and country, with consequences for the geographic pattern of FDI flows .
The current crisis began in the developed world, though it is rapidly spreading to developing and transition economies. Developed countries have thus
been directly hit by the financial crisis, while its effects on developing economies have so far been indirect in most cases, with varying degrees of
severity among regions and countries. This has direct consequences on the geographical patterns of FDI inflows. There is ample evidence that the
global crisis is having a negative impact on international investment. Tighter credit conditions and lower corporate profits have weakened companies'
capability to finance their overseas projects; while the global economic recession and a heightened appreciation of risks have eroded business
confidence. Many large TNCs have revised their global expansion plans downward, and divestments have taken
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Global Economy Is Finally Stabilizing Following The Global...
The global economy is finally stabilizing following the global financial crisis and Great Recession. Our base–case outlook for average annual real
growth between 2015 and 2020 is between 3 and 4 percent Lower global commodity prices are an important factor supporting stronger economic
growth. Although economies that are dependent on commodity exports may suffer, lower input prices for industry as well as lower fuel prices for
households will provide a boost to aggregate demand and global growth. We expect emerging economies to continue to grow by more than 4 percent
(contributing $16.2 trillion to global growth through 2020 at market exchange rates), while the growth rate of advanced economies is forecast to
exceed 2 percent (contributing $13.5 trillion through 2020) for the first time since 2010. The United States is leading the recovery among advanced
markets, and we expect the country to be a significant contributor to global growth through 2020. However, we anticipate economic performance to
continue to diverge within both the emerging and developed market groupings based on key policy choices, as governments grapple with structural
reforms in the context of reduced fiscal and monetary stimulus. In this regard, strong leadership and bold government actions will determine whether
national economies can escape from the new mediocre of stable but low growth. Australia resources industry (BHP) Australia has a rich haven of
resources in the oil, gas and energy industries.
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Macroeconomic Trends And Conditions Of New Zealand Essay
In the following essay, various macroeconomic trends and conditions will be explored in reference to New Zealand.
While New Zealand has a rich history dating back to prehistoric times, the main economic development began with the colonization by British
explorers in the late 1700's. Throughout time, the island nation has shared much with its British lineage in that it has been a predominately isolated
island nation that relies heavily on international trade. While this has allowed New Zealand to become developed and prosperous, it also exposes their
economy to global economic recessions and unexpected swings in various economic indicators. Sections in particular will focus on GDP,inflation,
unemployment, credit markets, and lastly fiscal and monetary policy.
New Zealand's GDP in 2014 was $198.1 billion U.S. Dollars, which ranks 49th in the world. Their economy is free–market oriented and developed, and
is routinely ranked as one of the more efficient and least corrupt economies in the entire world [2][3][10]. Currently, GDP expenditure in New Zealand
is around 70% based in the services sector, 26% in the industrial sector, and the remaining 4% in agriculture. New Zealand has a high percentage of its
GDP composed in both imports and exports in international trade, which stand around 28% for both respectively [2][3]. Because of this high reliance
on international trade, the most recent economic recession from 2008–2009 saw real GDP contract for five quarters in a row,
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Essay on The Impact of the Global Financial Crisis on...
Economic growth
The impact of the Global Financial Crisis on economic growth
As a result of the global recession, Australia's GDP was forecasted to contract by 0.5% in 2009–10 in comparison to other advanced economies which
were expected to contract by 3.75% in the same year. However minor the reductions in GDP, it was evident that Australia was not exempt from the
global recession although is better placed and is expected to perform better than almost all other OECD economies. The global recession has also
triggered a fall in household wealth and a disruption in consumer confidence with consumption forecasted to contract by 0.25% in 2009–10. Economic
recovery package – use of macroeconomic policies
Fiscal policy
Fiscal policy, a ... Show more content on Helpwriting.net ...
Conversely, total expenditure for 2009–10 is forecasted to exceed revenue, increasing by 2% on estimated expenses since the February 2009 UEFO at
$338.2 billion. It is illustrated that the majority of revenue the government receives is from Individuals income taxation and on the other hand,
expenditure is expended most in the Social security and welfare sector.
In response to the advent of the global economic downturn in 2008, the Government utilised fiscal policy to provide an urgent stimulus to economic
activity as well as a sustainable medium term boost to aggregate demand. The Labour Government had carried out an expansionary macroeconomic
stance with a Budget recording $57.6 billion underlying fiscal deficit in 2009–10, which was equal to 4.9% of GDP (largest percentage of GDP on
record for the last 40 years) and will remain a deficit until 2015–16.
Further, the Government employed deliberate Government policy decisions subsequent to the crisis, adding to a major expansionary impact on the
Australian economy. Early and decisive spending initiatives have been put in place against the face of the global recession, ensuring the economy is
secured to make the most of the global recovery. Some of the key initiatives consist of:
The Government has spent $12.2 billion to assist households financially and support economic growth. The household stimulus package provides
extensive support from low to middle–income earners
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The Recession Of A Recession
Economical term 'recession' means a significant decrease in activity across the economy, which last longer than few months. This phenomenon is
visible in employment, wholesale–retail trade, and others. The recession is considered a normal part of the business cycle. Nevertheless, a one–time
crisis can trigger the onset of a recession. The global recession through 2007 to 2009 resulted in significant breakdowns to practically all the developed
and developing countries. In order to prevent a future financial crisis, numerous government policies were enforced. A recession usually last 6 to 18
months and interest rate fall to stimulate the economy. During a recession, people tend not to spend, borrow, but to save money because of a fall in
confidence. The government initiates an expansionary fiscal policy which involves increasing stimulus government spending and cutting taxes.
However, the question is can increased stimulus spending help end the recession. The first article, "Increased Stimulus Spending Can Help End the
Recession" by Lawrence H. Summers, argues that "for a successful economic recovery, the US government must pursue measures that increase
confidence, borrowing, and spending" (Summers 1). Summers alleges that the reason why recession keeps on is because of lack of demand. An
increase in spending to increase demand is the cure, even though too much spending was part of a cause in recession. Summers defined a recession as:
Recessions are times when there is too
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The 2008 Recession Affected The Global Economy
With the after effects of the stock marketing falling in 2008, and less investments involving risk and the GDP falling. This is when the economy began
turning internationally. With imports, exports and foreign investment falling along with the combination of employment and production being cut back
this recession affected the global economy. The unemployment rate in the United States began to skyrocket as well. Below is a graph depicting the
unemployment rate in the United States during the 2008 recession. This graph data is from Oregon Economic Crisis Analysis.
With lower rats of employment the United States Federal Reserve needed monetary policy to stimulate the economy. With many individuals loosing
their jobs primarily in the ... Show more content on Helpwriting.net ...
household savings increased and spending decreased. Going into 2008, many households could afford to keep debt and manage it because of the good
financial indicators. Below is a graph from Creditworthiness showing the U.S. average household debt vs saving leading into the 2008 financial crisis.
Most of the debt seen by households was in the form of mortgages, and loans against people's mortgages. Again with the government regulations
and push for more people to own houses, builders to expand their developments and banks to offer subprime loans which lead to competition among
banks to lower interest rates, give out adjustable rate mortgages, and even give no income no asset loans, it was easy to get the credit backing from
banks and financial institutions for individuals. This increased spending and debt can be contributed to why the economy was looking up for many
years, and the economy was booming. However when this uncertainty began to fall, more people pulled out of their personal investments that they
considered risk and starting hanging on to their money. Below is a chart from the U.S. Bureau of Economics depicting the household savings before
and after 2008. It is important to look at personal savings to see how the money supply could have also affected the economic crisis of 2008, which
turned the economy into a recession. With lower money supply in the economy and more in savings because of
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The Problem Of A Economic Crisis
The aim of this report is to understand what happened globally in economy for the last 7 years in order to build an affective and precise managerial
strategy for Global Hotel in to generate profitability and create a successful business.
What is the meaning of crisis and economic recessions?
Business Dictionary is defining crisis as "a situation in witch an economy experiences a sudden downtown brought on by a financial crisis"
(BusinessDictionary.com, 2014).
The major sign of an economic crisis is the falling of GDP, the drying up of liquidity and rising or falling of prices generated by inflation or deflation.
One form of economic crisis is the recession.
The National Bureau of Economic Research is defining economic recessions as "a significant decline in economic activity spread across the economy,
lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production and
wholesale–retail sales". More specifically, recession is defined as when businesses cease to expand, the GDP diminishes for two consecutive quarters,
the rate of unemployment rises and housing prices decline." (Morah, 2009)
The reasons of world recession?
The actual economic crisis were starting in 2008 with a financial crisis that had spread though the USA and became quickly almost global, affecting
world economy.
David Kotz, considered that world economy faced not just a severe economic and financial crisis, but structural, neoliberal
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Emerging From The Global Recession Of 1973-1975
Emerging from the global recession of 1973–1975, the resulting surge of neoliberalism transformed the global economy into a secularized faith that
draws on anxiety and responsibility for sustenance. Debt answers to anxiety and allows for a greater participation in the economy, subsequently, debtors
become shackled to their indebtedness, which evolves into a continuous moral burden. The relationship between credit and debt has developed into a
necessary technique of governВment under neoliberal regimes, as a means of securing order in an era that has seen a rapid growth of poverty and
inequality. Consequently, the conversion from Keynesianism toNeoliberalism required five compulsory reforms: one, rollback of the welfare state to
eliminate social safety nets, two, an attack on the power of organized labor to stagnate wages, three, precarization of labor markets to incite
occupational anxiety, four, financialization of the economy to exacerbate income inequality and finally fifth, exponential expansion of debt, which
restrains debtors and holds the system together. Therefore, Neoliberalism reorganized Keynesian capitalism to secure hegemony of finance capital, a
project of the wealth–owning classes to reverse the impediments they had encountered during the era of Keynesian social welfare.
Prior to the Great Depression, global economic policy had remained consistent since the 17th century, laissez–faire. Incidentally, in 1929, the stock
market crash and the Great Depression
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Unemployment And Its Effects On The Economy
Unemployment occurs when a person who is actively seeking employment but unable to find work. It is often used as measure of the health of the
economy and has been one of Australia's most serious long term economic challenges in recent decades. Economic growth is an ongoing process of
increase in the production capacity of goods and services over a period of time. This determines economic wealth and individual living standards. These
two economic issues have been a continuous matter within Australia, however the government has been actively addressing it with several policies
which are varying in effectiveness.
Unemployment has been one of the most persistent of all economic issues, leading to rising debates from economists over the causes of it and
policies which should be used to address the matter. Australia's unemployment rate has continued to be volatile with fluctuations every few years due
to several mishaps however, has remained relatively stable for a decade. According to the unemployment rate reported by the Australian Bureau of
Statistic, from 1978 to 2015 Australia is averaged to be 6.9 percent, with record high 10.9 percent in 1992 and an all–time low of 4 percent in 2008.
During the early 1990s, Australia underwent the effects of the global recession causing a significant upsurge in unemployment rates, its highest level
since the Great Depression of the 1930s. The falling aggregate demand, caused by this mishap, prompted cutbacks in production and the
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Determinants Of The Crisis Of Colander 's A Manifesto For...
Though there are numerous determinants that resulted in the Financial Crisis of 2008, wage stagnation for the majority of Americans and increasing
income inequality are among the most influential. The housing bubble that was fueled by subprime lending and indebtedness was a subsequent result
of these two determinants. This essay will analyze the two factors (income inequality and wage stagnation) that contributed to the onset of the crisis,
factors that are prolonging the crisis––expressed from the position of Colander's "A Structural Stagnation Policy Dilemma" and "A Manifesto for
Economic Sense"––as well as provide a link between inequality and unemployment. Ultimately, this analysis will evaluate several hypotheses to further
identify... Show more content on Helpwriting.net ...
Moreover, as the top percentage of Americans accumulated more wealth, the remaining percentage (primarily the middle–class) wages stagnated. This
furthered the income inequality between the wealthy elite––those who had the financial means to significantly influence politics––and the middle and
lower classes––those who struggled to maintain the basic welfare of their families and their social standing. As the gap increased and financial policies
began to benefit primarily the top percent of wealthy Americans, the remaining percentages were forced to spend more for critical services like
education and health care even though their wages were stagnated. This resulted in households spending larger portions of their incomes and saving
less for the long run. Debt accumulation for middle–class and lower–class households rose significantly in the decades prior to the crisis. (Within the
financial sector, debt rose from "22 percent of GDP in 1981 to 117 percent in 2008). As households spent more and saved less, they began relying
heavily on loans and speculation to sustain their spending. The housing market in the late 1990s and early 2000s became the primary focus of
spending––with banks giving out loans for houses far beyond the financial means of the one's acquiring them. As J. D. Wisman asserted in Wage
Stagnation, Rising Inequality, and the Financial Crisis, "the housing market was greatly stimulated by very low interest rates
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The contemporary Great Recession and the global financial...
Since the advent of the subprime crisis in 2007 that it is commonly believed to have led to the Great recession and to the present global financial
crisis, these issues have been subject to much research. In fact, no one can claim that the Great Recession and the global financial crisis have been
under–researched. In fact, the new world recession has been analysed from different angles and perspectives. Historians, economists, financial experts,
psychologists, anthropologists and other experts in academic, financial, economic and other fields of research are still analysing the contemporary global
financial crisis.
There is ample information on the new world recession, and upcoming documentations are bringing new knowledge on this ... Show more content on
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This is one of the reasons why many intellectuals and academics claim that their discourses on the new world recession are the truth. For example,
some nations believe that their macro–economic policy is the best solution to get out of this global financial crisis. They are spreading their roots to
become the new hegemony.
However, these discourses also make possible the sharing of cues, ideas and values that contribute to a better understanding of the global financial
crisis, its impacts, causes and implications. They facilitate the transmission of knowledge that is vital to find means to get out of the crisis and
minimise the negative impacts of the recession. However, transmission also implies that these discourses influence people's perception and conception
of the new world recession. Hence, these discourses confer power to leaders and academics to manipulate the population to believe what they want the
latter to believe.
The Great Recession of the late 2000s started with the subprime crisis in 2007 that has weakened the economy of almost all the big nations with
maybe the exception of the Republic of China. It seems, when we have a look at economic growth of China that, it has, until now, to some degree,
benefited from the global financial crisis. Indeed, it should be highlighted that when a recession occurs, depending on the type of recession, in general,
the economies of some countries are
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The Causes and Effects of a Recession Essay
Average cost is total cost divided by total output at a specific point. For instance if 100 units are produced and total cost incurred is 200 then
average cost of one unit would be 2/unit. Whereas Average revenue is calculated same as average cost however, instead of total cost we take total
revenue. Marginal cost is cost of producing one additional unit of output or in other words a rise in total cost when output rises by one unit. Similarly
marginal revenue is the rise in total revenue when output rises by one unit. For instance, if total revenue generated by 100 units is 200 and for 101
units it is 201, then marginal revenue would be 201–200=1. Output/Sales VolumeTotal CostTotal RevenueMarginal CostAverage CostMarginal Revenue
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It can also be seen that when the marginal cost is lower than the marginal revenue, profit is increased. When marginal cost is equal to the marginal
revenue profit is maximized. After this point, when marginal cost is above the marginal revenue, profit starts to fall. Therefore, profit is
maximized when MR=MC. In the above graph Y axis consists of amount whereas X axis represents level of output. It can be seen clearly that at
output level of 8, MC=MR (two lines cross over here) which is the output where profit is maximized. Similarly as we extended the connector line
above to get the price (average revenue) this is 23.5 as in the table above. Profit: When MC=MR, profit is 84 which is the highest possible amount in
current circumstances. Possible Market Structure: It is clear from the above data that the firm is certainly not working under perfectly competitive
market. In perfect competition, firm cannot afford to sell at lower price. If elasticity is calculated at different points, it can be seen that elasticity is
decreasing from top to bottom but still the demand is very elastic. For instance at 9 units elasticity is 5 (in absolute terms) which is still much greater
than 1 which means that it can be monopolistic competition or oligopolistic environment. But chances of monopoly are less because in monopoly
demand is usually inelastic. However, to decide between oligopoly and monopolistic
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Government Intervention in the Economy: Are Monetary and...
Subject Area: Economics
Topic: Deficit Spending
Essential Question: Should the government use instruments of monetary and fiscal stimulus policies to reactivate the economy?
Imagine people living in parks called Bushville's, lines for soup kitchens that go for blocks, and all across the country kids running away from home
travelling on trains searching for your next meal. This is just a taste of what 2009 could have been, but thankfully, the year did not go down this way
although it will be remembered for global economic crises and change. For the first time in three decades, the United States was forced to leave its
monetarist for m of economy and start to use Keynesian fiscal measures in order to try to revive its economy. Since then, ... Show more content on
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In fact, that is a standard response in financial crises" (Krugman). In response to the 2008 global financial market meltdown, governments around the
world demonstrate they agree with this since they are using fiscal measures to alleviate the recession.
Monetary Stimulus consists of the "regulation of the money to influence economy wide activity such as inflation, employment, and economic
growth" (McEachern 385). This form of stimulus is the most accepted one by the world, due to the monetarist school of thought developed by
Milton Freidman a University of Chicago economist and Nobel Prize winner whose ideas have become very popular among nations in the last three
decades due to the very conservative form of running an economy it believes. In addition, monetary stimuli have proved to be the quickest way
come out of a recession. According to University of Pennsylvania economist Bernardo Vega a top economist in the Dominican Republic and well
known around the world, manipulation of the United States Federal Reserve's key interest rate is a great way to promote investment. He says,
Lowering the Fed's key interest rate will have a positive effect on lenders and promotes investment that is correct; it should not have a negative effect
on saving because if all the major countries in the world are doing it at the same time the savings have nowhere else to go (Vega). Monetary stimulus
and deficit spending, in the form
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The Rate Of Gross Domestic Product And Unemployment
"The relationship between rate of Gross Domestic Product and Unemployment
Of an economy"
The economic power of an economy is what truly enables it to be a global ruler; furthermore a strong economy means the people are employed,
successful and thriving. The best way to measure the economy's current health is to just take a look at their Gross domestic production and
unemployment rate. A strong economy stands for global dominance and influence, resulting in high standards of living, decreased unemployment, and
prevention from recessions, depressions and also lower the risk of inflation but is there a link between the gross domestic product and unemployment
that plays a role in all this? And how does this effect the well being of an economy, also why was the Canadianrecession of 2008 a proof of this direct
but opposite link of GDP and unemployment.
Now to connect the dots, it's easy to put out all these terms but not actually understand how they are related well the growth of GDP means there is
more demand of products and if there is demand, companies need workers to make those products, hence there is lesser unemployment and the
economy is growing and production rate is also increasing. If the rate growth is constantly decreasing with lesser demand and there is constant lower
economic activity then the economy goes into recession. To further elaborate these concepts, Gross domestic product stands for the total economic
activity of a nation, it means the monetary value of
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Japan And Korea Economic Impact On Global Economy
INTRODUCTION
Japan and Korea are two of the strongest economies of Northeast Asia and have been very important players in global economy since the start of
globalization era. These two economies have major impact on global economy. Both the economies have experienced various external and internal
challenges. Therefore, it is important that we look at how these economies have been performing historically, more specifically since 1980s, so that
we could get an idea about who might be a more significant player in the global economy in the future.
History shows that both the economies have experienced high growth rates and crises and both the economies dealt with implementing various
policies. Both the countries responded to the crises in ... Show more content on Helpwriting.net ...
Japan government was under a huge pressure to recover the economy under a lot of pressure to improve the economy and was unwilling to force banks
to restructure their loans portfolio policy otherwise can result in the failure of major keiretsus.
Many critics consider that Japan's macroeconomic policies should have been more aggressive and steady. These policies should have been more
flexible in order to recover from great recession. Conventional measure shows that the fiscal and monetary policies of japan were expansionary.
These policies lowered the interest rates very rapidly. Caballero, Hoshi and Kashyap (2003) stressed on the zombie firm to explain why lower interest
rates and big budgets deficits have not emphasized the zombie firm explanation and explained why the low interest rates and big budget deficits have
not transformed the economy. The low interest rates had helped to keep the banks alive and boosted the aggregate demand to some extent due to deficit
spending. But none of these policies concentrated on closing the insolvent banks and getting rid of their zombie borrowers who were affecting the
economy. The government policies also upset the rehabilitation and restructuring. For example, the government permitted the poorest banks to carry on
to attract financing and supported the insolvent borrowers by constantly delaying the advance of the deposit insurance to limit its exposure (Hoshi and
Kashyap 2004). The regulators also choose not to strictly enforce
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The Causes and Effects of Global Recession.
INTRODUCTION
Here a definition a recession as well a global recession is mentioned. Some causes and effects has been listed. Due to recession occurring, I have
identified the effects of recession based on Tesco.
The causes and effects of global recession.
Global financial crisis, increasing for a while, began to show its results in the mid of 2007 into 2008. Worldwide stock markets have subsided, financial
institutions have dropped and governments in even the richest nations have had to develop packages to assist their financial organizations. Recession is
defined as a slowdown of activities in the economy over a time. The major effect of recession is Inflation as well as currency crisis. A decrease in
income may be another ... Show more content on Helpwriting.net ...
A decrease in world GDP occurred in many countries, specifically in developing countries. Imports have also declined significantly in importing
countries. This was obvious in countries such as China, Taiwan, Mexico, Egypt and Russia. it was stated that GDP fell to 3.8% in the U.S. The impact
of recession on employment may not be felt for some time. Investigation in Britain shows that low–skilled, low–educated workers and the immature are
in a weak position to unemployment in a downturn. It took Britain five years for unemployment to go back to its initial levels. From 2000 to 2003,
the Federal Reserve lowered their target rates. They then raised the funds rate significantly between July 2004 and July 2006. This added to an
increase in number of years to the adjustable–rate mortgage rates and made it more expensive for homeowners. As a result, this may have also
contributed to the deflating of the housing bubble. Gross Domestic Product declined at an in the last two years in the United States. When GDP
collapses, economic growth will also plunge. This is as a result of fewer goods being manufactured and therefore the rate of exports will reduce. It is
said that when exports decrease, it will not have sufficient funds to accommodate any growth in the economy what so ever. As a result in the decline
in GDP, employment rate will sooner or later begin to drop. As a result of the credit crunch, consumers have less purchasing power therefore
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Challenges for Logistics and Supply Chain Management in...
CHALLENGES FOR LOGISTIC & SUPPLY CHAIN MANAGEMENT IN SLOWDOWN
A distinct feature of this economic slowdown is the direct degradation of consumer's assets which has wiped out hundreds of billions of dollars in
wealth. And consumers have responded by spending conservatively and concentrating on improving their savings. This new era of low spending and
unpredictable consumer behaviour has rendered many demand–forecasting models inaccurate or even obsolete. Therefore, companies across the world
are facing the problem of reduced demand levels. The variation in demand levels can mean any or all the three of the following to the supply chain of
the firm: A. Bullwhip Effect The customer demand information is distorted as it is transmitted up to ... Show more content on Helpwriting.net ...
Regular recalibration of the forecasting system is also another possibility. The exact amount of historical data that will be required to form a trend
would, however, vary from industry to industry and company to company.
Exhibit 1: Impact of economic downturn
Challenges On Supply Chain
On Company
4
CASE IN POINT: GENERAL ELECTRIC
In the next section, we have tried to quantitatively analyse GE's pre and post recession supply chain through its financial statements and publicly
available secondary information. GE was chosen because of its enormous supply chain and global presence.
SUPPLY CHAIN BALANCED SCORECARD (SCOR: SUPPLY
–CHAIN OPERATIONS REFERENCE–MODEL)
With the SCOR model we tried to compare performance of GE before and after recession and measure the supply chain efficiency in each period
based on the four dimensions Source, Plan, Make and Deliver as shown exhibit 2. Exhibit 2: SCOR Model for Supply Chain Efficiency
The Key Performance Indicators (KPI) for each of the dimensions were identified and GE was scored on each of these KPIs for pre–recession quarter
and post–recession quarter. The prerecession supply chain efficiency of GE was found to be 87.94% and that in the post recession period to be 73.12%.
5
It is evident from the analysis above that GE's supply chain efficiency has reduced in the post recession period.
Note: Detailed analysis of
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Fiscal and Monetary Policy and Economic Fluctuations
The global economy was relatively doing fine more than five years ago before it was hit by economic downturn or recession. During this period, the
American economy was at its peak, particularly in the fourth quarter of 2007. However, this was followed by a mild recession at the beginning of
2008, which eventually turned into a severe credit crisis across the world approximately one year later. While only a few countries escaped the economic
recession, virtually no country could avoid the severe bear markets in stock (Norris, 2012). Some countries like the United States experienced changes
in gross domestic product and stock markets. Since it has the best record of the main developed countries, the United States was severely ... Show more
content on Helpwriting.net ...
The rate of inflation in the United States declined to a 4–year low in October 2013 and reached its lowest rate since October 2009. According to recent
releases, the inflation rate in the United States eased to 1 percent in October 2013, which was a 0.2 percent decline from the previous month. Interest
rates in the United States have continued to rise, particularly on 10–year Treasury bonds. In February this year, these rates had risen to 2.27 percent,
which was an indication of approximately 10 percent loss in the price of the bond. Nonetheless, the Federal Reserve has kept the interest rate on
long–term bonds to an unexpected low through its unconventional monetary policy. This implies that the main reason for the current interest rates is the
unconventional monetary policy i.e. quantitative easing regarding the purchase of huge amounts of Treasury bonds and other long–term assets.
On the contrary, the unemployment rate has remained extremely high at around 7.3 percent from its peak of 10 percent in October 2009. While there
has been a significant decline in the current rate of unemployment as compared to five years ago, it is still relatively high. The decline in the rate of
unemployment in the past five years is attributed to the addition of jobs by employers, though most of them are part–time and low–paying. This rate is
also fueled by the decline in portion
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Essay on The Impact of Financial Crisis on the Uk Job Market
The impact of the financial crisis on the UK job market and employment (2007–2009)
Module: PM021–Aspects of British Culture and Society
Name: JUN YU WU
Student Number: 0908108
Tutor: Jeff Meadowcroft
Word Count: 1,970
Contents
1. Introduction.................................................................................Page 3
2. Global financial crisis (2007–2009).............................................Page 3
3. Influence on world job market...................................................Page 3–4
4. Influence on the UK job market.................................................Page 4–5 4.1 Short–term changes..............................................................Page4–5 4.2
Long–term changes................................................................Page 5
5. Analysis of current situation in the UK....................................Page 5 5.1 "British jobs for British workers"........................................Page 6 5.2 Job ...
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Taking into account those employed part time for economic reasons and discouraged workers was 16.3%. (Bureau of Labor Statistics, US
Government, 2009) In Spain, the unemployment rate stood at 18.7% (37% for youths) in May 2009 – the highest in the eurozone. (CBCNews.ca,
2009) In July 2009, the unemployment rate was reduced from 9.5% to 9.4%. Even fewer jobs were lost in August, 216,000, recorded as the lowest
number of jobless since September 2008, but the unemployment rate rose to 9.7% in October 2009, it is said that some employers who cut jobs due to
the recession are beginning to hire them back. The rise of advanced economies in China, India, and Brazil increased the total amount of word job market
significantly. With the rapid development of communication and education in these countries, there are more workers allowed to compete with
workers in traditionally strong countries, such as the United States. This has a negative effect on wages and contributed to unemployment. (Telegraph,
2009) In addition, Britain has equal situation in terms of job market.
4. Influence on the UK job market 1. Short–term changes
|[pic] |
The left graph shows that the employment rate for July to September 2007 in the UK was 74.5 percent, peaking at 75 percent in the year–end and
dropped to around 72.5 per cent for
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Global Luxury Brands and Recession Essay
Global Luxury Brands' Strategies to Fight Recession Global luxury brands' strategies to Fight recession Choi Soon–hwa Luxury brands are actively
responding to the latest economic downturn, said to be the worst since the Great Depression, racking their brains to escape the grips of the falling
luxury goods market. Indeed, the hit to sales has been particularly bad as industrialized nations, traditionally the main luxury good markets, have
suffered greatly. With luxury goods consumers having become more diversified by region, class and age, and an increasing number of luxury brand
companies adopting professional management structures, luxury brands are approaching their |Figure 1 marketing and brand strategies in a more
systematic... Show more content on Helpwriting.net ...
They remain loyal to the brands and products they are accustomed to buying, but reduce the frequency of their purchases and/or carefully weigh the
value of products against prices. Moreover, as a new elite consumption pattern emerges in which buyers express an interest in participating in societal
issues or causes, those that prefer "green luxury" – environment–friendly production and products is growing in number. Keyword 4 self–Comforting
Consumption The upper–middle class is influenced by the economic downturn and reduces its spending, carefully considering purchases to avoid
overspending. They tend to seek emotional compensation by buying a totally different item rather than a lower–brand version of past purchases. There
is also a trend of "accessorization" in which people purchase low–priced entry products in the same brand. Keyword 1 "discrete" Consumption Among
absolute consumers, there is an increasing trend to buy exclusive, ultra–expensive brands and products that are not overly exposed and are way beyond
the spending power of most other people. In addition, products and services, wherein artisans make customized products and engrave customers' names,
their own names and the date of production, are becoming increasingly popular. As more "mania" consumers seek to buy products that have investment
value or are limited
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Jack Welch
1 How difficult a challenge did Welch face in 1981. How effectively did he take charge?
Welch encountered a very difficult situation in 1981; the economy was in a recession, almost one of the worst recessions any organization has
witnessed since the Great Depression of 1929. The strong dollar was losing value and the unemployment rate was at an all time high. Interest rates
were consistently on the incline during the time Welch took over as CEO of GE. Jack Welch was both a transformational and transactional leader who
displayed an aggressive competitive style of leadership. He did not let the recession deter him from maintaining a competitive advantage over the
competition. His philosophy was to ensure that GE was either #1 or #2 ... Show more content on Helpwriting.net ...
How does such a large, complex diversified conglomerate defy the critics and continue to grow so profitably? Have Welch 's various initiatives added
value? If so, how?
A cardinal rule of any CEO is to "refrain from fear" of taking risks. From the moment Welch took control of the company his strategy for change
implementation was a risk, GE 's method of downsizing over 100,000 employees could have endured significant ramifications during a recessionary
period, however, in the midst of a very difficult time he maintained his focus to change, resulting in a successful turnaround. Not only was Welch
determined to move forward with his change initiative, he also understood the importance of developing a work staff to be the best they can be. He
took pride in restructuring and reformulating an adequate staff that adheres to meeting the same objective as GE 's new leader. An organization in
general will drastically increase revenue if the organization values and appreciates their staff members like Welch demonstrated through his competitive
leadership style. GE has ventured into new opportunities, enhanced their global markets and expanded the realm of their service industry thus adding
value of a 60% increase.
4. What is your evaluation of Welch 's approach to leading change? How important was he to GE 's success? What are the implications for his
replacement?
In my opinion, Welch was a prominent
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Secular Stagnation And The 2008 Financial Crisis
Introduction: The collapse of the financial market in the United States created an accelerated momentum that pushed the global economy towards a
detrimental downward spiral during 2008. In response to the crisis, the world's top economies created the G20 leaders' forum in order to manage the
financial downturn. Although the crisis was somewhat managed by the G20, the Great Recession left the world with a weak and stagnate global
economy. The rise of secular stagnation was a viable threat following the Great Recession that entrench the whole world and is still a pressing issue
today. Secular stagnation is defined by low economic growth and high unemployment rate. In this paper I will discuss the origin of the 2008 financial
crisis and the G20 efforts in order to establish foundation to face the rise of secular stagnation. Following the brief history of today's urgent problem, I
will further discuss secular stagnation and argue that in order to solve the high unemployment caused by secular stagnation fiscal policies must be
applied as well as a pursue to an improvement in educational system must be made.
2008 Financial Crisis and the G20 The financial crisis began in 2006 when the US housing marking began to decline due to irresponsible mortgage
lending in subprime areas. Many borrowers were unable to pay back these loans, thus increasing the toxic debt held by many banks. In addition,
Fogarty and Park state that there was an imbalance between countries with excessive
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Deutsche Brauerei Case
Deutche Brauerei is a family run German Beer Company. It is owned entirely by 16 uncles, aunts, and cousins from the Schweitzer family. The
Schweitzers are brewers, not marketers or finance people, so they have hired Oleg Pinchuk to help with the marketing aspects and Greta Schweitzer,
Lukas Schweitzer's niece, to give financial expertise. The company's agenda includes: approval of the 2001 financial budget, declaration of the
quarterly dividend, and adoption of a compensation scheme for Oleg Pinchuk. Greta also wants to study the company's reliance on debt financing and
whether or not Deutsche's aggressive penetration of the Ukraine helped the company.
Although it appears that Oleg Pinchuk has done a great job at aggressively ... Show more content on Helpwriting.net ...
We do not want to create more incentive for him to increase sales especially since is likely to continue doing it with inexperienced entrepreneurs that
may continue to be late on their payments and possible hurt the company. He needs to focus on making these distributors more reliable.
In conclusion, I would accept the financial plan if the changes to the dividend payout and Pinchuk's compensation were made. It may also be wise
to slightly lower the projected sales in the Ukraine since I do not recommend the expansion. It is my hope that with more focus on the distributors the
company's account receivables will decrease instead of increase. I'm also hoping that our reliance on debt will decrease and our liquidity will increase
or remain the same if we decrease the speed of our
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Poverty In America Research Paper
Poverty is a very big problem happening around the world, especially in America. America is known for being successful, however, the difference
between the rich and poor is very big. A great example will be a recession that happened in America in 2007 until 2009. These people living in poverty
suffer getting jobs, supporting their family with the lack of money they earn and don't have a proper home or education. For these reasons, the economy
is affected negatively.
A recession, the definition by Cambridge dictionary, is a period when the economy of a country is not successful and conditions for business is bad. A
massive amount of Americans lost wealth during the recession that happened in 2007–2009. According to Scholars Strategy Network, to this day, this
recession is known as the worst downturn since the Great Depression that affected millions of Americans. Losing wealth led to to the Americans giving
up their homes ... Show more content on Helpwriting.net ...
These effects that poverty gives off is normally negative. According to American Psychological Association, one of the effects is physical health of
human body. The lack of nutrition can lead to hunger or obesity. Having a lack of nutrition as a child is very dangerous, because they need energy
and nutrition for their growth. Poverty can also affect sickness' that lasts for a long time. Nextly, psychosocial outcome is an effect of poverty.
Children living in poverty has a big chance of getting emotional problems like anxiety or depression. Lastly, poverty affects academic achievement,
especially for young children. A study from the American Psychological Association shows that the stress of living in poverty can affect children's
memory, which will be a big problem for their future. The National Center for Education Statistics took a survey and studied that students living in
families with low–income were more common that students living in families with higher
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Global Financial Crisis Of 2008: The 2008 Global Recession
It has been known that in 2008 a global financial crisis appeared with the collapse of various large financial firms in the United States and spread
leading to a global economic turmoil, also known as the 2008 Global Recession. It was this crisis that had all begun from mortgage dealers giving
mortgages to people not qualified for home loans, or also known But it did not stop there. Mortgage lenders would then sell these loans to a bank or to
government–charted institutions that were created to buy up mortgages and provide mortgage lenders with more money they could borrow from. From
there, the institutions would sell the mortgages to investment banks that would keep them with thousands more into a "mortgage–backed security" that
would provide
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The Great Recession in the year 2008
Recession 16Specifically, Freund (2009) defines global downturns as years when world real GDP growth is (1) below 2 percent, (2) more than 1.5
percentage points below the previous five–year average, and (3) at its minimum relative to the previous two years and the following two years. 1975,
1982, 1991, 2001, and 2008 Freund (2009) describes the evolution of world trade following four previous global downturns. She finds that the size of
the decline in world trade during these episodes is almost five times the corresponding decline in world GDP. She also finds that, while world trade
growth resumes quickly following a global downturn, it takes more than three years for trade to reach predownturn levels. Referance Freund,... Show
more content on Helpwriting.net ...
Later the same day, the Bank of America announced that it would be purchasing Merrill Lynch. Due to the above factors, there was major instability
on the global stock markets with major decreases in market value between the 15th and 17th of September 2008. On the 16th September, the
American International Group (AIG), which suffered due to its credit rating being reduced, was helped by the Federal Reserve which created an $85
billion credit facility to stop it from collapse. Over the next two weeks, more banks failed and the two remaining banks–Goldman Sachs and Morgan
Stanley converted into 'bank holding companies ' so that they had more access to market liquidity. Numerous plans were put forward with intent to
solve the crisis and in the end President George W. Bush and the Secretary of the Treasury announced a $700 billion financial aid package intented to
limit the damage that the previous few week 's events caused. The plan was received well by investors on Wall Street and around the world. Read on
On 28th September it was announced that Fortis, a large banking and finance firm would be semi–nationalized with Luxembourg, Belgium and the
Netherlands investing over 11 billion Euros into the company. On Monday 29th September, it was announced that the US bank Wachovia would be
bought up by Citigroup (this
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Background Of The Company : Lojack Corporation
Nghi Trieu
ENTP 4350.001
Background of the Company
LoJack Corporation was established in 1978 in America and became the global leader in developing a tracking system to recover stolen vehicles.
The company hope to provide a more secure and efficient system to its customers and law enforcements to prevent and counter auto thief and to protect
their valuable assets. The company main focus is the automobile dealers, but they soon expanded their service.
Automobile dealerships in over half of the United States bought LoJack systems, and it is also sold to other countries worldwide. The awareness of their
brand has spread over 90 percent in America, and they planned to enter other markets such as construction equipment and computer.
... Show more content on Helpwriting.net ...
These steps give LoJack great advantages and it benefits both way.
Maintaining Leadership
LoJack products are different from its competitors, mainly the GPS systems, due to their technologies and strategy. They work directly with law
enforcement in the U.S., unlike other competitors. They also have a definite core purpose and remain constant with it.
The applications they used in LoJack system can even penetrate buildings to locate stolen assets. The unit can also be installed on the vehicle with no
visibility of it, so the presence of the device is unknown to outsiders.
Product differentiation play a large part in the success of LoJack. This create values in their products gaining the trust and loyalty of the customers.
LoJack is innovative on what they do and work to renew themselves to stay competitive. They have great economic perspective in creating useful
products to better serve the consumers in need. They have the knowledge, drive and ability of organizational creativity.
The company understands the risks for working with U.S. auto industry especially during the recession in 2008, so they venture out to produce four new
business units to minimize it by looking into investing on early–stage opportunities.
LoJack is committed to invest in new markets and opportunities in the long run and always encourage all of their employees
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Tesla Car Industry: Global Recession Of 2008-2009
Economical The biggest economic factor that affected the automobile industry is the global recession of 2008–2009. During this timeframe, many
homeowners purchased homes they could not afford thinking that house prices would raise and in reality the prices fell, which led to foreclosures
across the nation. Thus, many banks lost money due to financing home loans, which further caused several banks to be bailed out by the government.
Once the home market crashed, Americans stopped spending money on luxury items such as cars and focused more on necessity purchases. However,
Tesla has contributed to the economy by created more than 1,500 jobs in its manufacturing facilities. As previously stated, Tesla succeeded in
producing non–gas, zero–emission vehicles, thus created an entirely new market segment in the car industry. When the demand began to increase for
Tesla vehicle models, this demand created opportunities for new job positions within the company to produce vehicles, batteries and other merchandise.
Sociocultural... Show more content on Helpwriting.net ...
Americans are now more concerned with creating a better environment to live in. The production of vehicles across the globe emits harmful gases in
the environment. In addition to the previous, gasoline driven vehicles emits carbon dioxide into the air, which further destroys the ozone layer.
However, the car industry as a whole has a unique classification system for consumers. Each car manufacturer has a distinct classification for each
vehicle made for consumers that depends on the consumer lifestyle. Cars are now marketed to consumers based on social status, income levels, and
other factors. One prime example is how Tesla marketed the Roadster model to luxury sports car
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Impact of Recession and Its Effects on Hrm
Impact of Recession and its effects on HRM INTRODUCTION: The world has suddenly plummeted into a deep economic crisis (called Global
Meltdown or Financial Tsunami), the worst ever since the 1930's. It has almost taken all the countries across the globe into its grip. Almost all the
sectors of economy with varying degrees have caught business by surprise during the current global downturn with so much swiftness that every day
has become a question of survival. Organizations are grappling with low demand of their products, manufacturing plants are kept idling, export markets
are dying, job markets are being annihilated everyday and the symptoms of slowdown are getting starker and starker with every passing day of
downturn phenomena.... Show more content on Helpwriting.net ...
Highly paid employees have been asked to agree on a voluntary cut as in the cases of Motorola and Jet Airways. Bonuses are significantly frozen.
Even 15 out of 20 AIG companies have frozen compensation levels and increment. There has been the return on variable pay which the financial
service sector has been increasingly using. Jet Airways has slashed salaries of its top key executives by 25%. Pilots and engineers earning 10
lakhs per month would have to experience a pay cut of 20% where as chief executive and operational heads would experience 25 % pay cut. The
company has also decided to freeze all sorts of allowances to trainee pilots, though the pilots who come below Rs.75, 000 per month salary bracket
have been left out. Production Cut : Indian manufacturing sector has no less been affected by economic downturn. In many cases, companies have
trimmed production by reducing the number of working days to three to five days a week. Hyundai India (by 25%), GM India (by 10%), Maruti
Suzuki (by 6.3%), Toyata India (by 30%), Madras Almunium Co. have all cut back capacity of production while some companies have shut plants or
mills completely. Around 50% of 4000 ginning mills in India (mostly the Punjab, Maharastra, Gujarat, and Andhra Pradesh) have closed their shutter
completely. The survey conducted by FICCI on the impact of slow down on the Indian manufacturing sector that textiles, metal
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Deutsche Post Is Europe 's Leading Postal Service Provider
Deutsche Post DHL Group is the world's leading mail and logistics company operating under two strong brands: Deutsche Post is Europe's leading
postal service provider. Deutsche Post AG is uniquely positioned in the world's growth markets, with a comprehensive range of international express,
freight transportation, e–commerce and supply chain management services. Deutsche Post AG is a listed corporation domiciled in Bonn, Germany.
Corporation has approx 470,000 employees in more than 220 countries. Deutsche Post became the major shareholder in DHL and 100% shareholding
was completed by the end of the year.
The Group is organised into the four operating divisions Post – eCommerce – Parcel, Express, Global Forwarding, Freight and Supply Chain, whose
products and services we describe in the Business units and market positions chapter. Each of them is under the control of its own divisional
headquarters and subdivided into functions, business units or regions for reporting purposes. They consolidate the internal services that support the
entire Group, including Finance, IT, Procurement and Legal, in Global Business Services (GBS). This allows them to make even more efficient use of
their resources whilst reacting flexibly to the rapidly changing demands of the business and customers.
Its 3 main competitors would be FEDEX Corporation, UNITED PARCEL SERVICE, INC. , TNT Express N.V.
They are currently following their 2020 strategy by focusing on their core business logistics with
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Global Recession on Morocco's Economy
TOPIC
a) Analyse the effects of the global recession on Morocco's economy. b) Discuss what action Morocco has taken to reduce the adverse effects of the
downturn c) In your view, does the downturn offer any positive opportunities for Morocco?
Table of contents
Introduction4
1. The effects of the global recession on Morocco's economy5
1–1 The impact of the international financial crisis on Moroccan financial economy5 1–2 – The Moroccan economy facing crisis6
2. Actions taken to reduce the adverse effects of the downturn by Morocco7
3. Does the downturn offer any positive opportunities for Morocco?9
Conclusion11
References12
Introduction
The international financial crisis has largely been ... Show more content on Helpwriting.net ...
"Some foreign investors in the place could liquidate their position if they are affected by the crisis. But none of this has been reached, "said the
director of Project Financing in BMCE Abdellatif Nasserdine.
The only impacts that the crisis could have on the place of Casablanca are psychological. The mistrust that has plagued the world in relation to real
estate assets could be extended to Moroccan operators. Several reasons explain the remoteness of the international crisis in the Moroccan stock
exchange
Moreover, the Moroccan banking system is composed of mainly Moroccan–owned banks (BMCE, BCP, AttijariwafaBank) which control 70% of
Morocco's banking market, and majority foreign–owned banks (SGMB, Credit Du Maroc, BMCI) that share 30% of the Moroccan banking market.
Recall that BNP Paribas owns 63% capital in BMCI, Societe Generale control with 51% of the SGMB and Credit Lyonnais has majority in CrГ©dit
du Maroc with 52% of capital. Yet according to the financial press, many French banks are affected by the crisis:
– The Societe Generale has not yet digested the loss of 5 billion of EURO attributed to its trader. Its shares have lost 50% of their value.
– The CrГ©dit Agricole difficulties through its Calyon business bank wich will cut 500 jobs.
In Morocco, the economy is rather well behaved throughout the years 2008 and 2009, the greater control
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Questions on Economics, the Recession, and the Federal...
Part 8 – A recession is typically defined as at least two consecutive quarters of economic decline in GDP. When this happens, unemployment tends to
rise, personal income may drop, and the price of goods and services become volatile. Most agree that it is impossible to eliminate recession in a
capitalistic economy, since it is so cyclic. Recessions may trim weak business and allow stronger ones to survive by employing techniques that improve
quality and service. Recession does not mean depression; it simply means that there are peaks and valleys within the overall economic system. Now
that economies are more global though, these dips have a far more reaching set of consequences. In most firms, however, recession may result in some
lay–offs, but it also may mean greater attention to sustainability, cost–cutting, and a more lean and strategic approach to the individual product or
service (Moffatt, 2009).
Part 9 – The Federal Reserve System was created in 1913 to act as the central bank of the United States and to oversee the nation's monetary policy,
regulate banking, and make financial systems stable. Over the past two years, though, the Fed has faced serious challenges as it responded to severe
recessionary times. The TARP program was a new tool to provide capital to banks, as well as new programs to stabilize money market mutual funds
and short term paper markets. TARP and TALF (Term Asset
–Backed Securities Loan Facility) helped revive security markets and allow more
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Business Pl Enchanted Vineyard B & Bairbed And Breakfast...
Business Plan
Enchanted Vineyard B&BAirbed and Breakfast(AirBnB) Business
Part A
Business Profile
Business activityThe main purpose of opening our business is to rent the five bed rooms house which has newly renovated, to people who are
traveling or weekend getaway customers with good pricethrough the https://www.airbnb.co.nz/website, which is very famous in all over the world.
The enchanted vineyard Airbed & Breakfast is a charming airbed and breakfast (BnB) located in the Matakana, Rodney, Auckland.This can be
categorized as one kind of rental house or room service with breakfast as well as hospitality industry.
Product/ServicesWe offer what we have, renting rooms or whole house trough Airbnb website. We can make different concept and different services
offering not just the accommodation, but also breakfast and the possibility to have a really nice and unique experience, working for a day or more, in
our vineyard.6.000.000 guests are searching online from 190 different countries. New Zealand is one of the famous country for traveler.
Degree of InnovationAirBnB is a project initiated to get the money lent out an extra room. And it was spread by the house poor around the world.In
addition, travelers from around the world liked AirBnB with variety of experiences which cannot give when they staying at hotels. Whenever customer
wanted to find something special for their travel, it should be a good chance to make an idea with different concept for AirBnB business. We
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The International Monetary Fund ( Imf )
In the last chapter we looked at how incompetent and politically driven economic policy making drove Europe into prolonged recession and high
unemployment. The financial crises and fear of a meltdown slowed world economic growth considerably. In October 2010, the International Monetary
Fund (IMF) projected 4.6 percent growth for the global economy in 2013; it ended up being just 3 percent. This difference may not seem like much,
but in terms of lost output it is more than $800 billion, and it is not only in the rich countries. This meant that tens of millions of people worldwide
were pushed into poverty and unemployment, including in developing countries – despite the fact that the big policy mistakes were being made in
Europe. To most of the people who write about these issues, and most of the media, there was not much that could have been done differently, that
would have assured a speedy and robust recovery. But they are wrong.
One of the more common justifications for the slow recovery and prolonged unemployment that has followed the Great Recession – to varying degrees
in both the United States and Europe – is that this is an inevitable result of recessions brought about by financial crises. This argument seems to have
been given added weight by economists Carmen Reinhart and Kenneth Rogoff.
While there is some debate over whether recessions caused by financial crises really do have more prolonged recovery periods, such a historical
relationship – if it exists –
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Tax Policy Persuasive Essay
As we approach election day, both front runners; Donald Trump and Hillary Clinton have proposed their policies if they were to take office. Hillary
Clinton is advocating to increase tax on the top one percent, while Donald Trump wishes to cut tax (especially for the wealthy and middle class).
Trumps policy mirrors the trickle down system; where we cut tax on the rich, leaving them with more money in which we assume they will invest.
Yet, we have seen this to be a failure since the rich do not invest their money, rather, they save it. Trump's proposal is more of a tax relief when
compared to Secretary Clinton's plan, however, Trump's proposal could cause more problems to rise.
Next, both front runners must find funding to implicate their policies. Hillary Clinton's policies will cost about $1.8 trillion, however, her offsets
match up to the price. Despite Clinton's dedication to pay for her policies, she is not healing the U.S. debt. Debt held by the public would rise from
74% GDP to 86% GDP by 2026. GDP affects everyone; from businesses, to average citizens within the economy. Gross domestic production represents
the dollar value of goods and ... Show more content on Helpwriting.net ...
Trumps tax policy is flawed, which is why we must tweak it so that tax is only cut on the middle class. The basis of a strong economy is founded
among a strong middle class. This would increase consumer spending (since the middle class spend the most), stimulating the U.S. economy (and
businesses). We should stray away from Trump's immigration policy– getting rid of anyone undocumented in the U.S.– since it dilutes consumer
spending (immigrants contribute $12 billion to the economy). A successful business always sets priorities that must be done. To maintain a healthy
economy, business growth, and consumer spending, we must first tackle the largest problem we have. We must heal tax, debt, and war prior to fixing
the smaller issues such as
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Impact on Indian Economy
Impact of Recession on Indian Economy & Changes in
Consumer Behaviour due to Recession
Introduction–
Almost everybody today seems to be discussing about the US Recessionary trend and its impact on emerging countries, more particularly India
Economists, Industrialists and the common man on the streets seem to have been horrified by the very thought of recession in India and that too due to
US. Decreasing industrial production, inflation, decreasing job opportunities, cost cutting, reducing purchasing power parity, et al are the aspects
discussed among them through every possible mode like articles, talks & walks and places like washrooms, canteens, etc
But to me the reality is very different! Yes......
India will not be ... Show more content on Helpwriting.net ...
Reduced industrial output
3. Reduced job opportunities
4. Stock Market is lingering in the bottom
5. Real estate market has started to take a beating
6. Inflation has increased
7. GDP has come down and the GPD forecast for the next two quarters are only average.
8. Change in consumer behaviors and purchasing power.
Indian economy 'faces slowdown not recession '
India is a different economy and known as one of the most promising economies in terms of growth and investment.
India, with $1.1 trillion or the second largest GDP among the world 's developing economies is treading on the right path of sustained progress and
development. While most Western economies are heading toward recession, the Indian GDP growth is likely to witness a slowdown from 9 percent
last year to 6.5 to 7.5 percent by the year–end.
The Indian economy is immune to the global mortgage crisis, failures of banks in the West and liquidity crisis.
"Indian economy is based on robust fundamentals and enjoys the status of one of the most dynamic and growing economies in the world with over 9
percent GDP last year."
India itself is a biggest consumer market with 300 million of middle class and the lowest debt ratio of 22 percent of the GNP. The country enjoys the
highest savings rate of 28 percent of the GDP."
Change in consumer behaviors due to recession in India.
Today 's recession has affected all over the world. Due to the economic slowdown many companies
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Louis Vuitton : The External And Global Environments Essay
Case 14: Louis Vuitton in Japan
Company Name: Louis Vuitton in Japan
Topic of the Week: The External and Global Environments
Synopsis of the Situation Louis Vuitton "was established in France in 1854 by Louis Vuitton and became known as one of the oldest French luxury
fashion houses" in the industry (Pearce & Robinson, 2013, p. 14–2). The firm's products range from high quality "leather goods, handbags, trunks,
shoes, watches, jewelry, and accessories"; manufactured by highly skilled and expensive laborers in France (Forbes.com, 2016). In addition, Louis
Vuitton market their products "in 50 countries with more than 460 shops and generates more than €7–billion ($9.5–billion U.S.) in annual sales"
(Wendlandt, 2013).
For years, Louis Vuitton enjoyed high profit margins from the luxury market in Japan until other competitors such as Prada andGucci entered the
market. Counterfeiting also became a threat to the firm's brand by satisfying consumer demand at lower prices. Other external global environmental
problems included highly priced products, limited availability in stores only, and a heavy dependency on the Japanese market (Pearce & Robinson,
2013, p. 14–18). Moreover, "the after–shocks of the global recession were a threat to Louis Vuitton's luxury business in Japan", and Japanese women
became less interested in the brand's products (Pearce & Robinson, 2013, p. 14–18). Alternatively, Louis Vuitton could "reinvent itself and regain what
used to be its well–attested
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Fiscal And Monetary Policy In The UK
The UK government uses both Fiscal and Monetary
Policy in its control of the economy:
Analysis and Discussion.
'The Business Environment Report' submitted to
The College of Technology London.
Submitted By: Max Pereira Enrolment No: 083799–84 Section: MEP 2 Email: max.pereira@stu.ctlondon.ac.uk Word Count: 3000 words
Under the Guidance of
Lecturer: George Olusoji
1. Abstract
We are all aware of the present world crisis and the recession period in which United Kingdom is progressing. Any individual may be inquisitive about
what the government of UK is doing in this case and how the government ... Show more content on Helpwriting.net ...
In order to maintain the economic stability and growth the government uses two common strategic approaches towards management of the economy
which are:
1: Fiscal policy: concentrating on stimulating the economy through changes in the government income and expenditure.
2: Monetary Policy, which influences the circular flow of income by changes in the supply of money and interest rates (Palmer and Hartley, 2006).
4. Methodology
The methodology used to discuss and analyze the given topic would be Case study, which will act as a primary source of data. Yin (2003)
recommended the use of case–study protocol as part of a carefully designed research project. He also added that case studies can be either single or
multiple–case designs. Single cases are used to confirm or challenge a theory, or to represent a unique or extreme case. Uma Sekaran (2003) supports
the justification for this methodology according to whom, case studies involve in–depth and background analyses of relatively similar situations within
one environment and compare that of other. She also commented that case studies provide more of qualitative data rather than quantitative data.
As the topic suggested, the environmental subject of the case study would be UK. It may be noted that UK was one of the few member nations which
was invited to the G–20 meet held on 14–15 of November 2008. And since the G–20 is a forum that brings together important industrial
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The United Kingdom's Spilt And How It Affects Their Gdp
The United Kingdom's Spilt and how it affects their GDP
It is the responsibility of every government to defend its citizens in all matters when it comes to maintaining the economy. Every economy comes
against different challenges including the business cycles that may stem from the world market. In this essay I will try to explain the actions taken by
the United Kingdoms' union government in trying to make sure that the economy profits from all citizens and reduce the whole load to it. I will
consider the recent events of their split from the European Union.
There are so many countries in the world have been struggling because of a recession in their country's economies and United Kingdom hasn't been an
exception. A recession is a macroeconomic term that explains one of the two different business cycles that economies face and go through. The
business cycles are characterized by either a thriving trend where there are more business happenings supported with a rapid economic increase and
parts of a recession where there is obstruction of the economic development. There are many different features and aspects that contribute to economic
progress, which is measured through the gross domestic product. This factor will include reserves, investments government spending and other factors
within either an upsurge or a reduction. A reduction in spending might lead to a recession while an upsurge in spending could lead to expansion.
Taxpayers who want to be home owners, now since
... Get more on HelpWriting.net ...

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Foreign Investment During The Recent Global Economic...

  • 1. Foreign Investment During the Recent Global Economic... Foreign Investment during the recent global economic recession ABSTRACT:– The year 2008 marked the end of a growth cycle in international investment that started in 2004 and saw world foreign direct investment (FDI) inflows reach a historic record of $1.9 trillion in 2007. Since then FDIs have been decreasing. The fall in global FDI in 2008–2009 is the result of two major factors affecting domestic as well as international investment. First, the capability of firms to invest has been reduced by a fall in access to financial resources, both internally – due to a decline in corporate profits – and externally – due to the lower availability and higher cost of finance. Second, the propensity to invest has been affected negatively by ... Show more content on Helpwriting.net ... The proposed Xstrata takeover of a South African mining conglomerate was put on hold as the financing was harder due to the credit crunch . There are several other examples e.g. in India . In the face of the global economic slowdown (and recession in a number of major economies), tighter credit conditions and falling corporate profits, many companies have announced plans to curtail production, lay off workers and cut capital expenditure, all of which has implications for FDI .However, the impact of the crisis varies widely, depending on region and country, with consequences for the geographic pattern of FDI flows . The current crisis began in the developed world, though it is rapidly spreading to developing and transition economies. Developed countries have thus been directly hit by the financial crisis, while its effects on developing economies have so far been indirect in most cases, with varying degrees of severity among regions and countries. This has direct consequences on the geographical patterns of FDI inflows. There is ample evidence that the global crisis is having a negative impact on international investment. Tighter credit conditions and lower corporate profits have weakened companies' capability to finance their overseas projects; while the global economic recession and a heightened appreciation of risks have eroded business confidence. Many large TNCs have revised their global expansion plans downward, and divestments have taken ... Get more on HelpWriting.net ...
  • 2. Global Economy Is Finally Stabilizing Following The Global... The global economy is finally stabilizing following the global financial crisis and Great Recession. Our base–case outlook for average annual real growth between 2015 and 2020 is between 3 and 4 percent Lower global commodity prices are an important factor supporting stronger economic growth. Although economies that are dependent on commodity exports may suffer, lower input prices for industry as well as lower fuel prices for households will provide a boost to aggregate demand and global growth. We expect emerging economies to continue to grow by more than 4 percent (contributing $16.2 trillion to global growth through 2020 at market exchange rates), while the growth rate of advanced economies is forecast to exceed 2 percent (contributing $13.5 trillion through 2020) for the first time since 2010. The United States is leading the recovery among advanced markets, and we expect the country to be a significant contributor to global growth through 2020. However, we anticipate economic performance to continue to diverge within both the emerging and developed market groupings based on key policy choices, as governments grapple with structural reforms in the context of reduced fiscal and monetary stimulus. In this regard, strong leadership and bold government actions will determine whether national economies can escape from the new mediocre of stable but low growth. Australia resources industry (BHP) Australia has a rich haven of resources in the oil, gas and energy industries. ... Get more on HelpWriting.net ...
  • 3. Macroeconomic Trends And Conditions Of New Zealand Essay In the following essay, various macroeconomic trends and conditions will be explored in reference to New Zealand. While New Zealand has a rich history dating back to prehistoric times, the main economic development began with the colonization by British explorers in the late 1700's. Throughout time, the island nation has shared much with its British lineage in that it has been a predominately isolated island nation that relies heavily on international trade. While this has allowed New Zealand to become developed and prosperous, it also exposes their economy to global economic recessions and unexpected swings in various economic indicators. Sections in particular will focus on GDP,inflation, unemployment, credit markets, and lastly fiscal and monetary policy. New Zealand's GDP in 2014 was $198.1 billion U.S. Dollars, which ranks 49th in the world. Their economy is free–market oriented and developed, and is routinely ranked as one of the more efficient and least corrupt economies in the entire world [2][3][10]. Currently, GDP expenditure in New Zealand is around 70% based in the services sector, 26% in the industrial sector, and the remaining 4% in agriculture. New Zealand has a high percentage of its GDP composed in both imports and exports in international trade, which stand around 28% for both respectively [2][3]. Because of this high reliance on international trade, the most recent economic recession from 2008–2009 saw real GDP contract for five quarters in a row, ... Get more on HelpWriting.net ...
  • 4. Essay on The Impact of the Global Financial Crisis on... Economic growth The impact of the Global Financial Crisis on economic growth As a result of the global recession, Australia's GDP was forecasted to contract by 0.5% in 2009–10 in comparison to other advanced economies which were expected to contract by 3.75% in the same year. However minor the reductions in GDP, it was evident that Australia was not exempt from the global recession although is better placed and is expected to perform better than almost all other OECD economies. The global recession has also triggered a fall in household wealth and a disruption in consumer confidence with consumption forecasted to contract by 0.25% in 2009–10. Economic recovery package – use of macroeconomic policies Fiscal policy Fiscal policy, a ... Show more content on Helpwriting.net ... Conversely, total expenditure for 2009–10 is forecasted to exceed revenue, increasing by 2% on estimated expenses since the February 2009 UEFO at $338.2 billion. It is illustrated that the majority of revenue the government receives is from Individuals income taxation and on the other hand, expenditure is expended most in the Social security and welfare sector. In response to the advent of the global economic downturn in 2008, the Government utilised fiscal policy to provide an urgent stimulus to economic activity as well as a sustainable medium term boost to aggregate demand. The Labour Government had carried out an expansionary macroeconomic stance with a Budget recording $57.6 billion underlying fiscal deficit in 2009–10, which was equal to 4.9% of GDP (largest percentage of GDP on record for the last 40 years) and will remain a deficit until 2015–16. Further, the Government employed deliberate Government policy decisions subsequent to the crisis, adding to a major expansionary impact on the Australian economy. Early and decisive spending initiatives have been put in place against the face of the global recession, ensuring the economy is secured to make the most of the global recovery. Some of the key initiatives consist of: The Government has spent $12.2 billion to assist households financially and support economic growth. The household stimulus package provides extensive support from low to middle–income earners ... Get more on HelpWriting.net ...
  • 5. The Recession Of A Recession Economical term 'recession' means a significant decrease in activity across the economy, which last longer than few months. This phenomenon is visible in employment, wholesale–retail trade, and others. The recession is considered a normal part of the business cycle. Nevertheless, a one–time crisis can trigger the onset of a recession. The global recession through 2007 to 2009 resulted in significant breakdowns to practically all the developed and developing countries. In order to prevent a future financial crisis, numerous government policies were enforced. A recession usually last 6 to 18 months and interest rate fall to stimulate the economy. During a recession, people tend not to spend, borrow, but to save money because of a fall in confidence. The government initiates an expansionary fiscal policy which involves increasing stimulus government spending and cutting taxes. However, the question is can increased stimulus spending help end the recession. The first article, "Increased Stimulus Spending Can Help End the Recession" by Lawrence H. Summers, argues that "for a successful economic recovery, the US government must pursue measures that increase confidence, borrowing, and spending" (Summers 1). Summers alleges that the reason why recession keeps on is because of lack of demand. An increase in spending to increase demand is the cure, even though too much spending was part of a cause in recession. Summers defined a recession as: Recessions are times when there is too ... Get more on HelpWriting.net ...
  • 6. The 2008 Recession Affected The Global Economy With the after effects of the stock marketing falling in 2008, and less investments involving risk and the GDP falling. This is when the economy began turning internationally. With imports, exports and foreign investment falling along with the combination of employment and production being cut back this recession affected the global economy. The unemployment rate in the United States began to skyrocket as well. Below is a graph depicting the unemployment rate in the United States during the 2008 recession. This graph data is from Oregon Economic Crisis Analysis. With lower rats of employment the United States Federal Reserve needed monetary policy to stimulate the economy. With many individuals loosing their jobs primarily in the ... Show more content on Helpwriting.net ... household savings increased and spending decreased. Going into 2008, many households could afford to keep debt and manage it because of the good financial indicators. Below is a graph from Creditworthiness showing the U.S. average household debt vs saving leading into the 2008 financial crisis. Most of the debt seen by households was in the form of mortgages, and loans against people's mortgages. Again with the government regulations and push for more people to own houses, builders to expand their developments and banks to offer subprime loans which lead to competition among banks to lower interest rates, give out adjustable rate mortgages, and even give no income no asset loans, it was easy to get the credit backing from banks and financial institutions for individuals. This increased spending and debt can be contributed to why the economy was looking up for many years, and the economy was booming. However when this uncertainty began to fall, more people pulled out of their personal investments that they considered risk and starting hanging on to their money. Below is a chart from the U.S. Bureau of Economics depicting the household savings before and after 2008. It is important to look at personal savings to see how the money supply could have also affected the economic crisis of 2008, which turned the economy into a recession. With lower money supply in the economy and more in savings because of ... Get more on HelpWriting.net ...
  • 7. The Problem Of A Economic Crisis The aim of this report is to understand what happened globally in economy for the last 7 years in order to build an affective and precise managerial strategy for Global Hotel in to generate profitability and create a successful business. What is the meaning of crisis and economic recessions? Business Dictionary is defining crisis as "a situation in witch an economy experiences a sudden downtown brought on by a financial crisis" (BusinessDictionary.com, 2014). The major sign of an economic crisis is the falling of GDP, the drying up of liquidity and rising or falling of prices generated by inflation or deflation. One form of economic crisis is the recession. The National Bureau of Economic Research is defining economic recessions as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production and wholesale–retail sales". More specifically, recession is defined as when businesses cease to expand, the GDP diminishes for two consecutive quarters, the rate of unemployment rises and housing prices decline." (Morah, 2009) The reasons of world recession? The actual economic crisis were starting in 2008 with a financial crisis that had spread though the USA and became quickly almost global, affecting world economy. David Kotz, considered that world economy faced not just a severe economic and financial crisis, but structural, neoliberal ... Get more on HelpWriting.net ...
  • 8. Emerging From The Global Recession Of 1973-1975 Emerging from the global recession of 1973–1975, the resulting surge of neoliberalism transformed the global economy into a secularized faith that draws on anxiety and responsibility for sustenance. Debt answers to anxiety and allows for a greater participation in the economy, subsequently, debtors become shackled to their indebtedness, which evolves into a continuous moral burden. The relationship between credit and debt has developed into a necessary technique of governВment under neoliberal regimes, as a means of securing order in an era that has seen a rapid growth of poverty and inequality. Consequently, the conversion from Keynesianism toNeoliberalism required five compulsory reforms: one, rollback of the welfare state to eliminate social safety nets, two, an attack on the power of organized labor to stagnate wages, three, precarization of labor markets to incite occupational anxiety, four, financialization of the economy to exacerbate income inequality and finally fifth, exponential expansion of debt, which restrains debtors and holds the system together. Therefore, Neoliberalism reorganized Keynesian capitalism to secure hegemony of finance capital, a project of the wealth–owning classes to reverse the impediments they had encountered during the era of Keynesian social welfare. Prior to the Great Depression, global economic policy had remained consistent since the 17th century, laissez–faire. Incidentally, in 1929, the stock market crash and the Great Depression ... Get more on HelpWriting.net ...
  • 9. Unemployment And Its Effects On The Economy Unemployment occurs when a person who is actively seeking employment but unable to find work. It is often used as measure of the health of the economy and has been one of Australia's most serious long term economic challenges in recent decades. Economic growth is an ongoing process of increase in the production capacity of goods and services over a period of time. This determines economic wealth and individual living standards. These two economic issues have been a continuous matter within Australia, however the government has been actively addressing it with several policies which are varying in effectiveness. Unemployment has been one of the most persistent of all economic issues, leading to rising debates from economists over the causes of it and policies which should be used to address the matter. Australia's unemployment rate has continued to be volatile with fluctuations every few years due to several mishaps however, has remained relatively stable for a decade. According to the unemployment rate reported by the Australian Bureau of Statistic, from 1978 to 2015 Australia is averaged to be 6.9 percent, with record high 10.9 percent in 1992 and an all–time low of 4 percent in 2008. During the early 1990s, Australia underwent the effects of the global recession causing a significant upsurge in unemployment rates, its highest level since the Great Depression of the 1930s. The falling aggregate demand, caused by this mishap, prompted cutbacks in production and the ... Get more on HelpWriting.net ...
  • 10. Determinants Of The Crisis Of Colander 's A Manifesto For... Though there are numerous determinants that resulted in the Financial Crisis of 2008, wage stagnation for the majority of Americans and increasing income inequality are among the most influential. The housing bubble that was fueled by subprime lending and indebtedness was a subsequent result of these two determinants. This essay will analyze the two factors (income inequality and wage stagnation) that contributed to the onset of the crisis, factors that are prolonging the crisis––expressed from the position of Colander's "A Structural Stagnation Policy Dilemma" and "A Manifesto for Economic Sense"––as well as provide a link between inequality and unemployment. Ultimately, this analysis will evaluate several hypotheses to further identify... Show more content on Helpwriting.net ... Moreover, as the top percentage of Americans accumulated more wealth, the remaining percentage (primarily the middle–class) wages stagnated. This furthered the income inequality between the wealthy elite––those who had the financial means to significantly influence politics––and the middle and lower classes––those who struggled to maintain the basic welfare of their families and their social standing. As the gap increased and financial policies began to benefit primarily the top percent of wealthy Americans, the remaining percentages were forced to spend more for critical services like education and health care even though their wages were stagnated. This resulted in households spending larger portions of their incomes and saving less for the long run. Debt accumulation for middle–class and lower–class households rose significantly in the decades prior to the crisis. (Within the financial sector, debt rose from "22 percent of GDP in 1981 to 117 percent in 2008). As households spent more and saved less, they began relying heavily on loans and speculation to sustain their spending. The housing market in the late 1990s and early 2000s became the primary focus of spending––with banks giving out loans for houses far beyond the financial means of the one's acquiring them. As J. D. Wisman asserted in Wage Stagnation, Rising Inequality, and the Financial Crisis, "the housing market was greatly stimulated by very low interest rates ... Get more on HelpWriting.net ...
  • 11. The contemporary Great Recession and the global financial... Since the advent of the subprime crisis in 2007 that it is commonly believed to have led to the Great recession and to the present global financial crisis, these issues have been subject to much research. In fact, no one can claim that the Great Recession and the global financial crisis have been under–researched. In fact, the new world recession has been analysed from different angles and perspectives. Historians, economists, financial experts, psychologists, anthropologists and other experts in academic, financial, economic and other fields of research are still analysing the contemporary global financial crisis. There is ample information on the new world recession, and upcoming documentations are bringing new knowledge on this ... Show more content on Helpwriting.net ... This is one of the reasons why many intellectuals and academics claim that their discourses on the new world recession are the truth. For example, some nations believe that their macro–economic policy is the best solution to get out of this global financial crisis. They are spreading their roots to become the new hegemony. However, these discourses also make possible the sharing of cues, ideas and values that contribute to a better understanding of the global financial crisis, its impacts, causes and implications. They facilitate the transmission of knowledge that is vital to find means to get out of the crisis and minimise the negative impacts of the recession. However, transmission also implies that these discourses influence people's perception and conception of the new world recession. Hence, these discourses confer power to leaders and academics to manipulate the population to believe what they want the latter to believe. The Great Recession of the late 2000s started with the subprime crisis in 2007 that has weakened the economy of almost all the big nations with maybe the exception of the Republic of China. It seems, when we have a look at economic growth of China that, it has, until now, to some degree, benefited from the global financial crisis. Indeed, it should be highlighted that when a recession occurs, depending on the type of recession, in general, the economies of some countries are ... Get more on HelpWriting.net ...
  • 12. The Causes and Effects of a Recession Essay Average cost is total cost divided by total output at a specific point. For instance if 100 units are produced and total cost incurred is 200 then average cost of one unit would be 2/unit. Whereas Average revenue is calculated same as average cost however, instead of total cost we take total revenue. Marginal cost is cost of producing one additional unit of output or in other words a rise in total cost when output rises by one unit. Similarly marginal revenue is the rise in total revenue when output rises by one unit. For instance, if total revenue generated by 100 units is 200 and for 101 units it is 201, then marginal revenue would be 201–200=1. Output/Sales VolumeTotal CostTotal RevenueMarginal CostAverage CostMarginal Revenue ... Show more content on Helpwriting.net ... It can also be seen that when the marginal cost is lower than the marginal revenue, profit is increased. When marginal cost is equal to the marginal revenue profit is maximized. After this point, when marginal cost is above the marginal revenue, profit starts to fall. Therefore, profit is maximized when MR=MC. In the above graph Y axis consists of amount whereas X axis represents level of output. It can be seen clearly that at output level of 8, MC=MR (two lines cross over here) which is the output where profit is maximized. Similarly as we extended the connector line above to get the price (average revenue) this is 23.5 as in the table above. Profit: When MC=MR, profit is 84 which is the highest possible amount in current circumstances. Possible Market Structure: It is clear from the above data that the firm is certainly not working under perfectly competitive market. In perfect competition, firm cannot afford to sell at lower price. If elasticity is calculated at different points, it can be seen that elasticity is decreasing from top to bottom but still the demand is very elastic. For instance at 9 units elasticity is 5 (in absolute terms) which is still much greater than 1 which means that it can be monopolistic competition or oligopolistic environment. But chances of monopoly are less because in monopoly demand is usually inelastic. However, to decide between oligopoly and monopolistic ... Get more on HelpWriting.net ...
  • 13. Government Intervention in the Economy: Are Monetary and... Subject Area: Economics Topic: Deficit Spending Essential Question: Should the government use instruments of monetary and fiscal stimulus policies to reactivate the economy? Imagine people living in parks called Bushville's, lines for soup kitchens that go for blocks, and all across the country kids running away from home travelling on trains searching for your next meal. This is just a taste of what 2009 could have been, but thankfully, the year did not go down this way although it will be remembered for global economic crises and change. For the first time in three decades, the United States was forced to leave its monetarist for m of economy and start to use Keynesian fiscal measures in order to try to revive its economy. Since then, ... Show more content on Helpwriting.net ... In fact, that is a standard response in financial crises" (Krugman). In response to the 2008 global financial market meltdown, governments around the world demonstrate they agree with this since they are using fiscal measures to alleviate the recession. Monetary Stimulus consists of the "regulation of the money to influence economy wide activity such as inflation, employment, and economic growth" (McEachern 385). This form of stimulus is the most accepted one by the world, due to the monetarist school of thought developed by Milton Freidman a University of Chicago economist and Nobel Prize winner whose ideas have become very popular among nations in the last three decades due to the very conservative form of running an economy it believes. In addition, monetary stimuli have proved to be the quickest way come out of a recession. According to University of Pennsylvania economist Bernardo Vega a top economist in the Dominican Republic and well known around the world, manipulation of the United States Federal Reserve's key interest rate is a great way to promote investment. He says, Lowering the Fed's key interest rate will have a positive effect on lenders and promotes investment that is correct; it should not have a negative effect on saving because if all the major countries in the world are doing it at the same time the savings have nowhere else to go (Vega). Monetary stimulus and deficit spending, in the form ... Get more on HelpWriting.net ...
  • 14. The Rate Of Gross Domestic Product And Unemployment "The relationship between rate of Gross Domestic Product and Unemployment Of an economy" The economic power of an economy is what truly enables it to be a global ruler; furthermore a strong economy means the people are employed, successful and thriving. The best way to measure the economy's current health is to just take a look at their Gross domestic production and unemployment rate. A strong economy stands for global dominance and influence, resulting in high standards of living, decreased unemployment, and prevention from recessions, depressions and also lower the risk of inflation but is there a link between the gross domestic product and unemployment that plays a role in all this? And how does this effect the well being of an economy, also why was the Canadianrecession of 2008 a proof of this direct but opposite link of GDP and unemployment. Now to connect the dots, it's easy to put out all these terms but not actually understand how they are related well the growth of GDP means there is more demand of products and if there is demand, companies need workers to make those products, hence there is lesser unemployment and the economy is growing and production rate is also increasing. If the rate growth is constantly decreasing with lesser demand and there is constant lower economic activity then the economy goes into recession. To further elaborate these concepts, Gross domestic product stands for the total economic activity of a nation, it means the monetary value of ... Get more on HelpWriting.net ...
  • 15. Japan And Korea Economic Impact On Global Economy INTRODUCTION Japan and Korea are two of the strongest economies of Northeast Asia and have been very important players in global economy since the start of globalization era. These two economies have major impact on global economy. Both the economies have experienced various external and internal challenges. Therefore, it is important that we look at how these economies have been performing historically, more specifically since 1980s, so that we could get an idea about who might be a more significant player in the global economy in the future. History shows that both the economies have experienced high growth rates and crises and both the economies dealt with implementing various policies. Both the countries responded to the crises in ... Show more content on Helpwriting.net ... Japan government was under a huge pressure to recover the economy under a lot of pressure to improve the economy and was unwilling to force banks to restructure their loans portfolio policy otherwise can result in the failure of major keiretsus. Many critics consider that Japan's macroeconomic policies should have been more aggressive and steady. These policies should have been more flexible in order to recover from great recession. Conventional measure shows that the fiscal and monetary policies of japan were expansionary. These policies lowered the interest rates very rapidly. Caballero, Hoshi and Kashyap (2003) stressed on the zombie firm to explain why lower interest rates and big budgets deficits have not emphasized the zombie firm explanation and explained why the low interest rates and big budget deficits have not transformed the economy. The low interest rates had helped to keep the banks alive and boosted the aggregate demand to some extent due to deficit spending. But none of these policies concentrated on closing the insolvent banks and getting rid of their zombie borrowers who were affecting the economy. The government policies also upset the rehabilitation and restructuring. For example, the government permitted the poorest banks to carry on to attract financing and supported the insolvent borrowers by constantly delaying the advance of the deposit insurance to limit its exposure (Hoshi and Kashyap 2004). The regulators also choose not to strictly enforce ... Get more on HelpWriting.net ...
  • 16. The Causes and Effects of Global Recession. INTRODUCTION Here a definition a recession as well a global recession is mentioned. Some causes and effects has been listed. Due to recession occurring, I have identified the effects of recession based on Tesco. The causes and effects of global recession. Global financial crisis, increasing for a while, began to show its results in the mid of 2007 into 2008. Worldwide stock markets have subsided, financial institutions have dropped and governments in even the richest nations have had to develop packages to assist their financial organizations. Recession is defined as a slowdown of activities in the economy over a time. The major effect of recession is Inflation as well as currency crisis. A decrease in income may be another ... Show more content on Helpwriting.net ... A decrease in world GDP occurred in many countries, specifically in developing countries. Imports have also declined significantly in importing countries. This was obvious in countries such as China, Taiwan, Mexico, Egypt and Russia. it was stated that GDP fell to 3.8% in the U.S. The impact of recession on employment may not be felt for some time. Investigation in Britain shows that low–skilled, low–educated workers and the immature are in a weak position to unemployment in a downturn. It took Britain five years for unemployment to go back to its initial levels. From 2000 to 2003, the Federal Reserve lowered their target rates. They then raised the funds rate significantly between July 2004 and July 2006. This added to an increase in number of years to the adjustable–rate mortgage rates and made it more expensive for homeowners. As a result, this may have also contributed to the deflating of the housing bubble. Gross Domestic Product declined at an in the last two years in the United States. When GDP collapses, economic growth will also plunge. This is as a result of fewer goods being manufactured and therefore the rate of exports will reduce. It is said that when exports decrease, it will not have sufficient funds to accommodate any growth in the economy what so ever. As a result in the decline in GDP, employment rate will sooner or later begin to drop. As a result of the credit crunch, consumers have less purchasing power therefore ... Get more on HelpWriting.net ...
  • 17. Challenges for Logistics and Supply Chain Management in... CHALLENGES FOR LOGISTIC & SUPPLY CHAIN MANAGEMENT IN SLOWDOWN A distinct feature of this economic slowdown is the direct degradation of consumer's assets which has wiped out hundreds of billions of dollars in wealth. And consumers have responded by spending conservatively and concentrating on improving their savings. This new era of low spending and unpredictable consumer behaviour has rendered many demand–forecasting models inaccurate or even obsolete. Therefore, companies across the world are facing the problem of reduced demand levels. The variation in demand levels can mean any or all the three of the following to the supply chain of the firm: A. Bullwhip Effect The customer demand information is distorted as it is transmitted up to ... Show more content on Helpwriting.net ... Regular recalibration of the forecasting system is also another possibility. The exact amount of historical data that will be required to form a trend would, however, vary from industry to industry and company to company. Exhibit 1: Impact of economic downturn Challenges On Supply Chain On Company 4 CASE IN POINT: GENERAL ELECTRIC In the next section, we have tried to quantitatively analyse GE's pre and post recession supply chain through its financial statements and publicly available secondary information. GE was chosen because of its enormous supply chain and global presence. SUPPLY CHAIN BALANCED SCORECARD (SCOR: SUPPLY –CHAIN OPERATIONS REFERENCE–MODEL) With the SCOR model we tried to compare performance of GE before and after recession and measure the supply chain efficiency in each period based on the four dimensions Source, Plan, Make and Deliver as shown exhibit 2. Exhibit 2: SCOR Model for Supply Chain Efficiency
  • 18. The Key Performance Indicators (KPI) for each of the dimensions were identified and GE was scored on each of these KPIs for pre–recession quarter and post–recession quarter. The prerecession supply chain efficiency of GE was found to be 87.94% and that in the post recession period to be 73.12%. 5 It is evident from the analysis above that GE's supply chain efficiency has reduced in the post recession period. Note: Detailed analysis of ... Get more on HelpWriting.net ...
  • 19. Fiscal and Monetary Policy and Economic Fluctuations The global economy was relatively doing fine more than five years ago before it was hit by economic downturn or recession. During this period, the American economy was at its peak, particularly in the fourth quarter of 2007. However, this was followed by a mild recession at the beginning of 2008, which eventually turned into a severe credit crisis across the world approximately one year later. While only a few countries escaped the economic recession, virtually no country could avoid the severe bear markets in stock (Norris, 2012). Some countries like the United States experienced changes in gross domestic product and stock markets. Since it has the best record of the main developed countries, the United States was severely ... Show more content on Helpwriting.net ... The rate of inflation in the United States declined to a 4–year low in October 2013 and reached its lowest rate since October 2009. According to recent releases, the inflation rate in the United States eased to 1 percent in October 2013, which was a 0.2 percent decline from the previous month. Interest rates in the United States have continued to rise, particularly on 10–year Treasury bonds. In February this year, these rates had risen to 2.27 percent, which was an indication of approximately 10 percent loss in the price of the bond. Nonetheless, the Federal Reserve has kept the interest rate on long–term bonds to an unexpected low through its unconventional monetary policy. This implies that the main reason for the current interest rates is the unconventional monetary policy i.e. quantitative easing regarding the purchase of huge amounts of Treasury bonds and other long–term assets. On the contrary, the unemployment rate has remained extremely high at around 7.3 percent from its peak of 10 percent in October 2009. While there has been a significant decline in the current rate of unemployment as compared to five years ago, it is still relatively high. The decline in the rate of unemployment in the past five years is attributed to the addition of jobs by employers, though most of them are part–time and low–paying. This rate is also fueled by the decline in portion ... Get more on HelpWriting.net ...
  • 20. Essay on The Impact of Financial Crisis on the Uk Job Market The impact of the financial crisis on the UK job market and employment (2007–2009) Module: PM021–Aspects of British Culture and Society Name: JUN YU WU Student Number: 0908108 Tutor: Jeff Meadowcroft Word Count: 1,970 Contents 1. Introduction.................................................................................Page 3 2. Global financial crisis (2007–2009).............................................Page 3 3. Influence on world job market...................................................Page 3–4 4. Influence on the UK job market.................................................Page 4–5 4.1 Short–term changes..............................................................Page4–5 4.2 Long–term changes................................................................Page 5 5. Analysis of current situation in the UK....................................Page 5 5.1 "British jobs for British workers"........................................Page 6 5.2 Job ... Show more content on Helpwriting.net ... Taking into account those employed part time for economic reasons and discouraged workers was 16.3%. (Bureau of Labor Statistics, US Government, 2009) In Spain, the unemployment rate stood at 18.7% (37% for youths) in May 2009 – the highest in the eurozone. (CBCNews.ca, 2009) In July 2009, the unemployment rate was reduced from 9.5% to 9.4%. Even fewer jobs were lost in August, 216,000, recorded as the lowest number of jobless since September 2008, but the unemployment rate rose to 9.7% in October 2009, it is said that some employers who cut jobs due to the recession are beginning to hire them back. The rise of advanced economies in China, India, and Brazil increased the total amount of word job market significantly. With the rapid development of communication and education in these countries, there are more workers allowed to compete with workers in traditionally strong countries, such as the United States. This has a negative effect on wages and contributed to unemployment. (Telegraph, 2009) In addition, Britain has equal situation in terms of job market.
  • 21. 4. Influence on the UK job market 1. Short–term changes |[pic] | The left graph shows that the employment rate for July to September 2007 in the UK was 74.5 percent, peaking at 75 percent in the year–end and dropped to around 72.5 per cent for ... Get more on HelpWriting.net ...
  • 22. Global Luxury Brands and Recession Essay Global Luxury Brands' Strategies to Fight Recession Global luxury brands' strategies to Fight recession Choi Soon–hwa Luxury brands are actively responding to the latest economic downturn, said to be the worst since the Great Depression, racking their brains to escape the grips of the falling luxury goods market. Indeed, the hit to sales has been particularly bad as industrialized nations, traditionally the main luxury good markets, have suffered greatly. With luxury goods consumers having become more diversified by region, class and age, and an increasing number of luxury brand companies adopting professional management structures, luxury brands are approaching their |Figure 1 marketing and brand strategies in a more systematic... Show more content on Helpwriting.net ... They remain loyal to the brands and products they are accustomed to buying, but reduce the frequency of their purchases and/or carefully weigh the value of products against prices. Moreover, as a new elite consumption pattern emerges in which buyers express an interest in participating in societal issues or causes, those that prefer "green luxury" – environment–friendly production and products is growing in number. Keyword 4 self–Comforting Consumption The upper–middle class is influenced by the economic downturn and reduces its spending, carefully considering purchases to avoid overspending. They tend to seek emotional compensation by buying a totally different item rather than a lower–brand version of past purchases. There is also a trend of "accessorization" in which people purchase low–priced entry products in the same brand. Keyword 1 "discrete" Consumption Among absolute consumers, there is an increasing trend to buy exclusive, ultra–expensive brands and products that are not overly exposed and are way beyond the spending power of most other people. In addition, products and services, wherein artisans make customized products and engrave customers' names, their own names and the date of production, are becoming increasingly popular. As more "mania" consumers seek to buy products that have investment value or are limited ... Get more on HelpWriting.net ...
  • 23. Jack Welch 1 How difficult a challenge did Welch face in 1981. How effectively did he take charge? Welch encountered a very difficult situation in 1981; the economy was in a recession, almost one of the worst recessions any organization has witnessed since the Great Depression of 1929. The strong dollar was losing value and the unemployment rate was at an all time high. Interest rates were consistently on the incline during the time Welch took over as CEO of GE. Jack Welch was both a transformational and transactional leader who displayed an aggressive competitive style of leadership. He did not let the recession deter him from maintaining a competitive advantage over the competition. His philosophy was to ensure that GE was either #1 or #2 ... Show more content on Helpwriting.net ... How does such a large, complex diversified conglomerate defy the critics and continue to grow so profitably? Have Welch 's various initiatives added value? If so, how? A cardinal rule of any CEO is to "refrain from fear" of taking risks. From the moment Welch took control of the company his strategy for change implementation was a risk, GE 's method of downsizing over 100,000 employees could have endured significant ramifications during a recessionary period, however, in the midst of a very difficult time he maintained his focus to change, resulting in a successful turnaround. Not only was Welch determined to move forward with his change initiative, he also understood the importance of developing a work staff to be the best they can be. He took pride in restructuring and reformulating an adequate staff that adheres to meeting the same objective as GE 's new leader. An organization in general will drastically increase revenue if the organization values and appreciates their staff members like Welch demonstrated through his competitive leadership style. GE has ventured into new opportunities, enhanced their global markets and expanded the realm of their service industry thus adding value of a 60% increase. 4. What is your evaluation of Welch 's approach to leading change? How important was he to GE 's success? What are the implications for his replacement? In my opinion, Welch was a prominent ... Get more on HelpWriting.net ...
  • 24. Secular Stagnation And The 2008 Financial Crisis Introduction: The collapse of the financial market in the United States created an accelerated momentum that pushed the global economy towards a detrimental downward spiral during 2008. In response to the crisis, the world's top economies created the G20 leaders' forum in order to manage the financial downturn. Although the crisis was somewhat managed by the G20, the Great Recession left the world with a weak and stagnate global economy. The rise of secular stagnation was a viable threat following the Great Recession that entrench the whole world and is still a pressing issue today. Secular stagnation is defined by low economic growth and high unemployment rate. In this paper I will discuss the origin of the 2008 financial crisis and the G20 efforts in order to establish foundation to face the rise of secular stagnation. Following the brief history of today's urgent problem, I will further discuss secular stagnation and argue that in order to solve the high unemployment caused by secular stagnation fiscal policies must be applied as well as a pursue to an improvement in educational system must be made. 2008 Financial Crisis and the G20 The financial crisis began in 2006 when the US housing marking began to decline due to irresponsible mortgage lending in subprime areas. Many borrowers were unable to pay back these loans, thus increasing the toxic debt held by many banks. In addition, Fogarty and Park state that there was an imbalance between countries with excessive ... Get more on HelpWriting.net ...
  • 25. Deutsche Brauerei Case Deutche Brauerei is a family run German Beer Company. It is owned entirely by 16 uncles, aunts, and cousins from the Schweitzer family. The Schweitzers are brewers, not marketers or finance people, so they have hired Oleg Pinchuk to help with the marketing aspects and Greta Schweitzer, Lukas Schweitzer's niece, to give financial expertise. The company's agenda includes: approval of the 2001 financial budget, declaration of the quarterly dividend, and adoption of a compensation scheme for Oleg Pinchuk. Greta also wants to study the company's reliance on debt financing and whether or not Deutsche's aggressive penetration of the Ukraine helped the company. Although it appears that Oleg Pinchuk has done a great job at aggressively ... Show more content on Helpwriting.net ... We do not want to create more incentive for him to increase sales especially since is likely to continue doing it with inexperienced entrepreneurs that may continue to be late on their payments and possible hurt the company. He needs to focus on making these distributors more reliable. In conclusion, I would accept the financial plan if the changes to the dividend payout and Pinchuk's compensation were made. It may also be wise to slightly lower the projected sales in the Ukraine since I do not recommend the expansion. It is my hope that with more focus on the distributors the company's account receivables will decrease instead of increase. I'm also hoping that our reliance on debt will decrease and our liquidity will increase or remain the same if we decrease the speed of our ... Get more on HelpWriting.net ...
  • 26. Poverty In America Research Paper Poverty is a very big problem happening around the world, especially in America. America is known for being successful, however, the difference between the rich and poor is very big. A great example will be a recession that happened in America in 2007 until 2009. These people living in poverty suffer getting jobs, supporting their family with the lack of money they earn and don't have a proper home or education. For these reasons, the economy is affected negatively. A recession, the definition by Cambridge dictionary, is a period when the economy of a country is not successful and conditions for business is bad. A massive amount of Americans lost wealth during the recession that happened in 2007–2009. According to Scholars Strategy Network, to this day, this recession is known as the worst downturn since the Great Depression that affected millions of Americans. Losing wealth led to to the Americans giving up their homes ... Show more content on Helpwriting.net ... These effects that poverty gives off is normally negative. According to American Psychological Association, one of the effects is physical health of human body. The lack of nutrition can lead to hunger or obesity. Having a lack of nutrition as a child is very dangerous, because they need energy and nutrition for their growth. Poverty can also affect sickness' that lasts for a long time. Nextly, psychosocial outcome is an effect of poverty. Children living in poverty has a big chance of getting emotional problems like anxiety or depression. Lastly, poverty affects academic achievement, especially for young children. A study from the American Psychological Association shows that the stress of living in poverty can affect children's memory, which will be a big problem for their future. The National Center for Education Statistics took a survey and studied that students living in families with low–income were more common that students living in families with higher ... Get more on HelpWriting.net ...
  • 27. Global Financial Crisis Of 2008: The 2008 Global Recession It has been known that in 2008 a global financial crisis appeared with the collapse of various large financial firms in the United States and spread leading to a global economic turmoil, also known as the 2008 Global Recession. It was this crisis that had all begun from mortgage dealers giving mortgages to people not qualified for home loans, or also known But it did not stop there. Mortgage lenders would then sell these loans to a bank or to government–charted institutions that were created to buy up mortgages and provide mortgage lenders with more money they could borrow from. From there, the institutions would sell the mortgages to investment banks that would keep them with thousands more into a "mortgage–backed security" that would provide ... Get more on HelpWriting.net ...
  • 28. The Great Recession in the year 2008 Recession 16Specifically, Freund (2009) defines global downturns as years when world real GDP growth is (1) below 2 percent, (2) more than 1.5 percentage points below the previous five–year average, and (3) at its minimum relative to the previous two years and the following two years. 1975, 1982, 1991, 2001, and 2008 Freund (2009) describes the evolution of world trade following four previous global downturns. She finds that the size of the decline in world trade during these episodes is almost five times the corresponding decline in world GDP. She also finds that, while world trade growth resumes quickly following a global downturn, it takes more than three years for trade to reach predownturn levels. Referance Freund,... Show more content on Helpwriting.net ... Later the same day, the Bank of America announced that it would be purchasing Merrill Lynch. Due to the above factors, there was major instability on the global stock markets with major decreases in market value between the 15th and 17th of September 2008. On the 16th September, the American International Group (AIG), which suffered due to its credit rating being reduced, was helped by the Federal Reserve which created an $85 billion credit facility to stop it from collapse. Over the next two weeks, more banks failed and the two remaining banks–Goldman Sachs and Morgan Stanley converted into 'bank holding companies ' so that they had more access to market liquidity. Numerous plans were put forward with intent to solve the crisis and in the end President George W. Bush and the Secretary of the Treasury announced a $700 billion financial aid package intented to limit the damage that the previous few week 's events caused. The plan was received well by investors on Wall Street and around the world. Read on On 28th September it was announced that Fortis, a large banking and finance firm would be semi–nationalized with Luxembourg, Belgium and the Netherlands investing over 11 billion Euros into the company. On Monday 29th September, it was announced that the US bank Wachovia would be bought up by Citigroup (this ... Get more on HelpWriting.net ...
  • 29. Background Of The Company : Lojack Corporation Nghi Trieu ENTP 4350.001 Background of the Company LoJack Corporation was established in 1978 in America and became the global leader in developing a tracking system to recover stolen vehicles. The company hope to provide a more secure and efficient system to its customers and law enforcements to prevent and counter auto thief and to protect their valuable assets. The company main focus is the automobile dealers, but they soon expanded their service. Automobile dealerships in over half of the United States bought LoJack systems, and it is also sold to other countries worldwide. The awareness of their brand has spread over 90 percent in America, and they planned to enter other markets such as construction equipment and computer. ... Show more content on Helpwriting.net ... These steps give LoJack great advantages and it benefits both way. Maintaining Leadership LoJack products are different from its competitors, mainly the GPS systems, due to their technologies and strategy. They work directly with law enforcement in the U.S., unlike other competitors. They also have a definite core purpose and remain constant with it. The applications they used in LoJack system can even penetrate buildings to locate stolen assets. The unit can also be installed on the vehicle with no visibility of it, so the presence of the device is unknown to outsiders. Product differentiation play a large part in the success of LoJack. This create values in their products gaining the trust and loyalty of the customers. LoJack is innovative on what they do and work to renew themselves to stay competitive. They have great economic perspective in creating useful products to better serve the consumers in need. They have the knowledge, drive and ability of organizational creativity. The company understands the risks for working with U.S. auto industry especially during the recession in 2008, so they venture out to produce four new business units to minimize it by looking into investing on early–stage opportunities. LoJack is committed to invest in new markets and opportunities in the long run and always encourage all of their employees ... Get more on HelpWriting.net ...
  • 30. Tesla Car Industry: Global Recession Of 2008-2009 Economical The biggest economic factor that affected the automobile industry is the global recession of 2008–2009. During this timeframe, many homeowners purchased homes they could not afford thinking that house prices would raise and in reality the prices fell, which led to foreclosures across the nation. Thus, many banks lost money due to financing home loans, which further caused several banks to be bailed out by the government. Once the home market crashed, Americans stopped spending money on luxury items such as cars and focused more on necessity purchases. However, Tesla has contributed to the economy by created more than 1,500 jobs in its manufacturing facilities. As previously stated, Tesla succeeded in producing non–gas, zero–emission vehicles, thus created an entirely new market segment in the car industry. When the demand began to increase for Tesla vehicle models, this demand created opportunities for new job positions within the company to produce vehicles, batteries and other merchandise. Sociocultural... Show more content on Helpwriting.net ... Americans are now more concerned with creating a better environment to live in. The production of vehicles across the globe emits harmful gases in the environment. In addition to the previous, gasoline driven vehicles emits carbon dioxide into the air, which further destroys the ozone layer. However, the car industry as a whole has a unique classification system for consumers. Each car manufacturer has a distinct classification for each vehicle made for consumers that depends on the consumer lifestyle. Cars are now marketed to consumers based on social status, income levels, and other factors. One prime example is how Tesla marketed the Roadster model to luxury sports car ... Get more on HelpWriting.net ...
  • 31. Impact of Recession and Its Effects on Hrm Impact of Recession and its effects on HRM INTRODUCTION: The world has suddenly plummeted into a deep economic crisis (called Global Meltdown or Financial Tsunami), the worst ever since the 1930's. It has almost taken all the countries across the globe into its grip. Almost all the sectors of economy with varying degrees have caught business by surprise during the current global downturn with so much swiftness that every day has become a question of survival. Organizations are grappling with low demand of their products, manufacturing plants are kept idling, export markets are dying, job markets are being annihilated everyday and the symptoms of slowdown are getting starker and starker with every passing day of downturn phenomena.... Show more content on Helpwriting.net ... Highly paid employees have been asked to agree on a voluntary cut as in the cases of Motorola and Jet Airways. Bonuses are significantly frozen. Even 15 out of 20 AIG companies have frozen compensation levels and increment. There has been the return on variable pay which the financial service sector has been increasingly using. Jet Airways has slashed salaries of its top key executives by 25%. Pilots and engineers earning 10 lakhs per month would have to experience a pay cut of 20% where as chief executive and operational heads would experience 25 % pay cut. The company has also decided to freeze all sorts of allowances to trainee pilots, though the pilots who come below Rs.75, 000 per month salary bracket have been left out. Production Cut : Indian manufacturing sector has no less been affected by economic downturn. In many cases, companies have trimmed production by reducing the number of working days to three to five days a week. Hyundai India (by 25%), GM India (by 10%), Maruti Suzuki (by 6.3%), Toyata India (by 30%), Madras Almunium Co. have all cut back capacity of production while some companies have shut plants or mills completely. Around 50% of 4000 ginning mills in India (mostly the Punjab, Maharastra, Gujarat, and Andhra Pradesh) have closed their shutter completely. The survey conducted by FICCI on the impact of slow down on the Indian manufacturing sector that textiles, metal ... Get more on HelpWriting.net ...
  • 32. Deutsche Post Is Europe 's Leading Postal Service Provider Deutsche Post DHL Group is the world's leading mail and logistics company operating under two strong brands: Deutsche Post is Europe's leading postal service provider. Deutsche Post AG is uniquely positioned in the world's growth markets, with a comprehensive range of international express, freight transportation, e–commerce and supply chain management services. Deutsche Post AG is a listed corporation domiciled in Bonn, Germany. Corporation has approx 470,000 employees in more than 220 countries. Deutsche Post became the major shareholder in DHL and 100% shareholding was completed by the end of the year. The Group is organised into the four operating divisions Post – eCommerce – Parcel, Express, Global Forwarding, Freight and Supply Chain, whose products and services we describe in the Business units and market positions chapter. Each of them is under the control of its own divisional headquarters and subdivided into functions, business units or regions for reporting purposes. They consolidate the internal services that support the entire Group, including Finance, IT, Procurement and Legal, in Global Business Services (GBS). This allows them to make even more efficient use of their resources whilst reacting flexibly to the rapidly changing demands of the business and customers. Its 3 main competitors would be FEDEX Corporation, UNITED PARCEL SERVICE, INC. , TNT Express N.V. They are currently following their 2020 strategy by focusing on their core business logistics with ... Get more on HelpWriting.net ...
  • 33. Global Recession on Morocco's Economy TOPIC a) Analyse the effects of the global recession on Morocco's economy. b) Discuss what action Morocco has taken to reduce the adverse effects of the downturn c) In your view, does the downturn offer any positive opportunities for Morocco? Table of contents Introduction4 1. The effects of the global recession on Morocco's economy5 1–1 The impact of the international financial crisis on Moroccan financial economy5 1–2 – The Moroccan economy facing crisis6 2. Actions taken to reduce the adverse effects of the downturn by Morocco7 3. Does the downturn offer any positive opportunities for Morocco?9 Conclusion11 References12 Introduction The international financial crisis has largely been ... Show more content on Helpwriting.net ... "Some foreign investors in the place could liquidate their position if they are affected by the crisis. But none of this has been reached, "said the director of Project Financing in BMCE Abdellatif Nasserdine.
  • 34. The only impacts that the crisis could have on the place of Casablanca are psychological. The mistrust that has plagued the world in relation to real estate assets could be extended to Moroccan operators. Several reasons explain the remoteness of the international crisis in the Moroccan stock exchange Moreover, the Moroccan banking system is composed of mainly Moroccan–owned banks (BMCE, BCP, AttijariwafaBank) which control 70% of Morocco's banking market, and majority foreign–owned banks (SGMB, Credit Du Maroc, BMCI) that share 30% of the Moroccan banking market. Recall that BNP Paribas owns 63% capital in BMCI, Societe Generale control with 51% of the SGMB and Credit Lyonnais has majority in CrГ©dit du Maroc with 52% of capital. Yet according to the financial press, many French banks are affected by the crisis: – The Societe Generale has not yet digested the loss of 5 billion of EURO attributed to its trader. Its shares have lost 50% of their value. – The CrГ©dit Agricole difficulties through its Calyon business bank wich will cut 500 jobs. In Morocco, the economy is rather well behaved throughout the years 2008 and 2009, the greater control ... Get more on HelpWriting.net ...
  • 35. Questions on Economics, the Recession, and the Federal... Part 8 – A recession is typically defined as at least two consecutive quarters of economic decline in GDP. When this happens, unemployment tends to rise, personal income may drop, and the price of goods and services become volatile. Most agree that it is impossible to eliminate recession in a capitalistic economy, since it is so cyclic. Recessions may trim weak business and allow stronger ones to survive by employing techniques that improve quality and service. Recession does not mean depression; it simply means that there are peaks and valleys within the overall economic system. Now that economies are more global though, these dips have a far more reaching set of consequences. In most firms, however, recession may result in some lay–offs, but it also may mean greater attention to sustainability, cost–cutting, and a more lean and strategic approach to the individual product or service (Moffatt, 2009). Part 9 – The Federal Reserve System was created in 1913 to act as the central bank of the United States and to oversee the nation's monetary policy, regulate banking, and make financial systems stable. Over the past two years, though, the Fed has faced serious challenges as it responded to severe recessionary times. The TARP program was a new tool to provide capital to banks, as well as new programs to stabilize money market mutual funds and short term paper markets. TARP and TALF (Term Asset –Backed Securities Loan Facility) helped revive security markets and allow more ... Get more on HelpWriting.net ...
  • 36. Business Pl Enchanted Vineyard B & Bairbed And Breakfast... Business Plan Enchanted Vineyard B&BAirbed and Breakfast(AirBnB) Business Part A Business Profile Business activityThe main purpose of opening our business is to rent the five bed rooms house which has newly renovated, to people who are traveling or weekend getaway customers with good pricethrough the https://www.airbnb.co.nz/website, which is very famous in all over the world. The enchanted vineyard Airbed & Breakfast is a charming airbed and breakfast (BnB) located in the Matakana, Rodney, Auckland.This can be categorized as one kind of rental house or room service with breakfast as well as hospitality industry. Product/ServicesWe offer what we have, renting rooms or whole house trough Airbnb website. We can make different concept and different services offering not just the accommodation, but also breakfast and the possibility to have a really nice and unique experience, working for a day or more, in our vineyard.6.000.000 guests are searching online from 190 different countries. New Zealand is one of the famous country for traveler. Degree of InnovationAirBnB is a project initiated to get the money lent out an extra room. And it was spread by the house poor around the world.In addition, travelers from around the world liked AirBnB with variety of experiences which cannot give when they staying at hotels. Whenever customer wanted to find something special for their travel, it should be a good chance to make an idea with different concept for AirBnB business. We ... Get more on HelpWriting.net ...
  • 37. The International Monetary Fund ( Imf ) In the last chapter we looked at how incompetent and politically driven economic policy making drove Europe into prolonged recession and high unemployment. The financial crises and fear of a meltdown slowed world economic growth considerably. In October 2010, the International Monetary Fund (IMF) projected 4.6 percent growth for the global economy in 2013; it ended up being just 3 percent. This difference may not seem like much, but in terms of lost output it is more than $800 billion, and it is not only in the rich countries. This meant that tens of millions of people worldwide were pushed into poverty and unemployment, including in developing countries – despite the fact that the big policy mistakes were being made in Europe. To most of the people who write about these issues, and most of the media, there was not much that could have been done differently, that would have assured a speedy and robust recovery. But they are wrong. One of the more common justifications for the slow recovery and prolonged unemployment that has followed the Great Recession – to varying degrees in both the United States and Europe – is that this is an inevitable result of recessions brought about by financial crises. This argument seems to have been given added weight by economists Carmen Reinhart and Kenneth Rogoff. While there is some debate over whether recessions caused by financial crises really do have more prolonged recovery periods, such a historical relationship – if it exists – ... Get more on HelpWriting.net ...
  • 38. Tax Policy Persuasive Essay As we approach election day, both front runners; Donald Trump and Hillary Clinton have proposed their policies if they were to take office. Hillary Clinton is advocating to increase tax on the top one percent, while Donald Trump wishes to cut tax (especially for the wealthy and middle class). Trumps policy mirrors the trickle down system; where we cut tax on the rich, leaving them with more money in which we assume they will invest. Yet, we have seen this to be a failure since the rich do not invest their money, rather, they save it. Trump's proposal is more of a tax relief when compared to Secretary Clinton's plan, however, Trump's proposal could cause more problems to rise. Next, both front runners must find funding to implicate their policies. Hillary Clinton's policies will cost about $1.8 trillion, however, her offsets match up to the price. Despite Clinton's dedication to pay for her policies, she is not healing the U.S. debt. Debt held by the public would rise from 74% GDP to 86% GDP by 2026. GDP affects everyone; from businesses, to average citizens within the economy. Gross domestic production represents the dollar value of goods and ... Show more content on Helpwriting.net ... Trumps tax policy is flawed, which is why we must tweak it so that tax is only cut on the middle class. The basis of a strong economy is founded among a strong middle class. This would increase consumer spending (since the middle class spend the most), stimulating the U.S. economy (and businesses). We should stray away from Trump's immigration policy– getting rid of anyone undocumented in the U.S.– since it dilutes consumer spending (immigrants contribute $12 billion to the economy). A successful business always sets priorities that must be done. To maintain a healthy economy, business growth, and consumer spending, we must first tackle the largest problem we have. We must heal tax, debt, and war prior to fixing the smaller issues such as ... Get more on HelpWriting.net ...
  • 39. Impact on Indian Economy Impact of Recession on Indian Economy & Changes in Consumer Behaviour due to Recession Introduction– Almost everybody today seems to be discussing about the US Recessionary trend and its impact on emerging countries, more particularly India Economists, Industrialists and the common man on the streets seem to have been horrified by the very thought of recession in India and that too due to US. Decreasing industrial production, inflation, decreasing job opportunities, cost cutting, reducing purchasing power parity, et al are the aspects discussed among them through every possible mode like articles, talks & walks and places like washrooms, canteens, etc But to me the reality is very different! Yes...... India will not be ... Show more content on Helpwriting.net ... Reduced industrial output 3. Reduced job opportunities 4. Stock Market is lingering in the bottom 5. Real estate market has started to take a beating 6. Inflation has increased 7. GDP has come down and the GPD forecast for the next two quarters are only average. 8. Change in consumer behaviors and purchasing power. Indian economy 'faces slowdown not recession ' India is a different economy and known as one of the most promising economies in terms of growth and investment. India, with $1.1 trillion or the second largest GDP among the world 's developing economies is treading on the right path of sustained progress and development. While most Western economies are heading toward recession, the Indian GDP growth is likely to witness a slowdown from 9 percent
  • 40. last year to 6.5 to 7.5 percent by the year–end. The Indian economy is immune to the global mortgage crisis, failures of banks in the West and liquidity crisis. "Indian economy is based on robust fundamentals and enjoys the status of one of the most dynamic and growing economies in the world with over 9 percent GDP last year." India itself is a biggest consumer market with 300 million of middle class and the lowest debt ratio of 22 percent of the GNP. The country enjoys the highest savings rate of 28 percent of the GDP." Change in consumer behaviors due to recession in India. Today 's recession has affected all over the world. Due to the economic slowdown many companies ... Get more on HelpWriting.net ...
  • 41. Louis Vuitton : The External And Global Environments Essay Case 14: Louis Vuitton in Japan Company Name: Louis Vuitton in Japan Topic of the Week: The External and Global Environments Synopsis of the Situation Louis Vuitton "was established in France in 1854 by Louis Vuitton and became known as one of the oldest French luxury fashion houses" in the industry (Pearce & Robinson, 2013, p. 14–2). The firm's products range from high quality "leather goods, handbags, trunks, shoes, watches, jewelry, and accessories"; manufactured by highly skilled and expensive laborers in France (Forbes.com, 2016). In addition, Louis Vuitton market their products "in 50 countries with more than 460 shops and generates more than €7–billion ($9.5–billion U.S.) in annual sales" (Wendlandt, 2013). For years, Louis Vuitton enjoyed high profit margins from the luxury market in Japan until other competitors such as Prada andGucci entered the market. Counterfeiting also became a threat to the firm's brand by satisfying consumer demand at lower prices. Other external global environmental problems included highly priced products, limited availability in stores only, and a heavy dependency on the Japanese market (Pearce & Robinson, 2013, p. 14–18). Moreover, "the after–shocks of the global recession were a threat to Louis Vuitton's luxury business in Japan", and Japanese women became less interested in the brand's products (Pearce & Robinson, 2013, p. 14–18). Alternatively, Louis Vuitton could "reinvent itself and regain what used to be its well–attested ... Get more on HelpWriting.net ...
  • 42. Fiscal And Monetary Policy In The UK The UK government uses both Fiscal and Monetary Policy in its control of the economy: Analysis and Discussion. 'The Business Environment Report' submitted to The College of Technology London. Submitted By: Max Pereira Enrolment No: 083799–84 Section: MEP 2 Email: max.pereira@stu.ctlondon.ac.uk Word Count: 3000 words Under the Guidance of Lecturer: George Olusoji 1. Abstract We are all aware of the present world crisis and the recession period in which United Kingdom is progressing. Any individual may be inquisitive about what the government of UK is doing in this case and how the government ... Show more content on Helpwriting.net ... In order to maintain the economic stability and growth the government uses two common strategic approaches towards management of the economy which are: 1: Fiscal policy: concentrating on stimulating the economy through changes in the government income and expenditure. 2: Monetary Policy, which influences the circular flow of income by changes in the supply of money and interest rates (Palmer and Hartley, 2006). 4. Methodology The methodology used to discuss and analyze the given topic would be Case study, which will act as a primary source of data. Yin (2003) recommended the use of case–study protocol as part of a carefully designed research project. He also added that case studies can be either single or
  • 43. multiple–case designs. Single cases are used to confirm or challenge a theory, or to represent a unique or extreme case. Uma Sekaran (2003) supports the justification for this methodology according to whom, case studies involve in–depth and background analyses of relatively similar situations within one environment and compare that of other. She also commented that case studies provide more of qualitative data rather than quantitative data. As the topic suggested, the environmental subject of the case study would be UK. It may be noted that UK was one of the few member nations which was invited to the G–20 meet held on 14–15 of November 2008. And since the G–20 is a forum that brings together important industrial ... Get more on HelpWriting.net ...
  • 44. The United Kingdom's Spilt And How It Affects Their Gdp The United Kingdom's Spilt and how it affects their GDP It is the responsibility of every government to defend its citizens in all matters when it comes to maintaining the economy. Every economy comes against different challenges including the business cycles that may stem from the world market. In this essay I will try to explain the actions taken by the United Kingdoms' union government in trying to make sure that the economy profits from all citizens and reduce the whole load to it. I will consider the recent events of their split from the European Union. There are so many countries in the world have been struggling because of a recession in their country's economies and United Kingdom hasn't been an exception. A recession is a macroeconomic term that explains one of the two different business cycles that economies face and go through. The business cycles are characterized by either a thriving trend where there are more business happenings supported with a rapid economic increase and parts of a recession where there is obstruction of the economic development. There are many different features and aspects that contribute to economic progress, which is measured through the gross domestic product. This factor will include reserves, investments government spending and other factors within either an upsurge or a reduction. A reduction in spending might lead to a recession while an upsurge in spending could lead to expansion. Taxpayers who want to be home owners, now since ... Get more on HelpWriting.net ...