How to Write a Summary of an Article?
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Com predicted that Americas cost of capital could rise sharply resulting to regression which will be characterised by slow growth in the economy Economist.
The current global crisis that has had negative impacts on several economies world wide was caused by the United States settling into a recession. The recession stated in the united states in when investors lost their confidence in securitized mortgages.
This caused a financial crisis as the amounts involved were of substantial amounts, as the crises deepened, it caused the stock market in the united to crash. Some of the countries that The global economic downturn essay on exportation of manufactured goods especially machines are recording negative growth as there is no demand for their products.
The manufacturing and assembling industries are the most affected industries by the recession. The increase in prices of raw materials and the fluctuating oil prices have greatly increased the cost of production for these industries yet the demand for the products is low.
Global Economic Recession Essay Words 4 Pages An economic recession is described as “a widespread decline in the GDP and employment and trade lasting from six months to a year.” (Word Net) The economic recession is an international problem that has been affecting countries like the United States, China, United Kingdom and others for over two years. The Shape of the Expected Recovery from the Great Recession Essay - represented the “Year of Repair”. Following the worst global banking and economic crisis in decades, the world embarked on a 12 month trek to rebuild the fiscal, monetary and economic infrastructures among the developed and developing world and much has yet to be done. The article focuses on the economic recessions and the factors leading to a slow recovery from the global economic downturn. Between and , the world experienced a historic economic recession. Many sectors of the economy experienced a shock in their operations leading to the shrink or even the closure of the firms.
The recession has also caused a decrease in demand of automobile products causing the company to reduce on production. The recession has also affected employment in the company. This came after the company had earlier on permanently laid off more production at the Illinois Caterpillar facilities Funding Universe Caterpillar provided that since it had not been determined as to when the recession would come to an end, all industries faced an uncertain future and decline in production was inevitable.
The recession has therefore caused the automobile industries to reduce on the number of employees due to the decrease in the demand for automobiles reduced orders which has forced the industries to reduce on production.
Recession has also had a negative impact on the development of the automobile industry. Most automobile companies have had drastic reduction in their profit margins. Successful development requires financial resources as facilities and equipment need to be purchased.
The current recession however has decreased the profit margins of auto mobile industries making it impossible to have any extra money that would be used in new developments. Most of the companies are also reducing on the number of their employees making and not hiring at the moment.
This implies that the orders for the products have been reduced. Most organisations are trying to reduce on their cost of production in the risk management tools employed.
This is because the risk involved with the current ongoing recession is financial. One of tools that has been employed by most companies to fight the threat posed by recession is to reduce the cost of production.
Most industries, Caterpillar being a good example have resorted to decreasing the number of employees they have so that they can use less on production Funding Universe Companies are also reducing production. This is in response to the decrease in orders of automobile products that has been brought about by the ongoing recession.
Companies are producing in less quantities so that they do not end up piling stock in their stores. The effect of recession is not the same in all countries. Most of the major companies have opted to outsource their manufacturing plants into such countries or others where the cost of production is lower than where they are operating from Click, R.
The Caterpillar Company is an example of such companies. Although this company was outsourcing before, it has greatly increased its operations in other countries that are not as much affected as the United States. The company while reducing the size of its production in the United States, it has increased in other countries such as India and china where the cost of production is lower than that in the United States Hira This has enabled the company to compete relatively well with the Japan based Komatsu in terms of price without making loses.
Other organizations have decided to reduce the cost of marketing and make shopping easier for customers by introducing online shopping.
This involves the buyers viewing and buying the products through the internet. The company does the delivery. The company has attributed its high profits to the use of online shopping which enabled it to increase the number of sales Corporate Watch para.
Other companies have resorted to training the workforce they have so that they do not need to employ more people during this time. Companies such as caterpillar are no allowing their employees to work overtime as they want to reduce on the amount of money they use on employees hence maximise on the limited profits.
Training is an important risk management tool that enables a company to invest in its employees and avoid going to search for experts which sometimes is expensive. Such companies have chosen to operate within their budget so that they can survive the prevailing threat.
Budget monitoring is an important tool in risk management especially where financial risk is involved. This enables the company to continue operating while it makes profits.
The recession has forced several companies to cut down on their production. This implies that an organization can not sustain the same amount of employees or other expenses it was spending on such as hiring new employees and paying workers for over time.The Shape of the Expected Recovery from the Great Recession Essay - represented the “Year of Repair”.
Following the worst global banking and economic crisis in decades, the world embarked on a 12 month trek to rebuild the fiscal, monetary and economic infrastructures among the developed and developing world and much has yet to be done. Essay Global Recession on Moroccoâ€™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?
Global Economic Recession - An economic recession is described as “a widespread decline in the GDP and employment and trade lasting from six months to a year.” (Word Net) The economic recession is an international problem that has been affecting countries like the United States, China, United Kingdom and others for over two years.
- 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 % in in comparison to other advanced economies which were expected to contract by % in the same year. Introduction. With the coming of planetary fiscal crisis hitting difficult about all over the Earth and impacting both domestic and transnational companies, the period of economic downswing has influenced the corporate and human resource schemes of every administrations (Hay Group, ).
Global Economic Recession Essay Words 4 Pages An economic recession is described as “a widespread decline in the GDP and employment and trade lasting from six months to a year.” (Word Net) The economic recession is an international problem that has been affecting countries like the United States, China, United Kingdom and others for over two years.