...INTRODUCTION 3 2.0. HOW CREDIT CRUNCH WILL AFFECT INTERNATIONAL BUSINESS? 4 3.0. RECOMMENDATIONS TO OVERCOME THIS CREDIT CRUNCH 6 4.0. CONCLUSION 7 5.0. BIBLIOGRAPHY 8 TASK 1 Discuss the likely effects to international/global business by the recent credit crunch. Suggest ways to overcome these problems. 1.0. INTRODUCTION Credit crunch is an economic downturn, when the world experiences a credit crisis. It is caused by declining value in real estate and by defaulting loans, arising from contraction in the supply of credit. A credit crunch is a [sudden] reduction in the availability of liquidity in the financial markets ( i.e. loans or credit) resulting in a sudden increase in the cost of obtaining a loan from financial institutions(Pearson, M. 2008) The United States of America banks had extended loans for purchase of homes to “risky” clients and this resulted in loan defaults in mortgages but soon spread to the rest of the market both in the United States of America and in the rest of the world. 2.0. HOW CREDIT CRUNCH WILL AFFECT INTERNATIONAL BUSINESS? The credit crunch affects international business in many ways as described below: 1.0. High Interest rates- the credit crunch has resulted in high interest rates and high cost of borrowing. This affects businesses as the cost of re-financing or diversifying a business increases. Businesses with large debt see high cost of servicing this debt and it escalates until the business is not able to continue...
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...trying to achieve that by the time the reader was finished they would know that the 1950’s was not all housewives cooking, and that once the war was over rations did not just end, they would be sold and business would employ all types of tactics to get the middle-class American to buy the new technology of food they were...
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...Evolution of PR from its Inception to Today To discuss the origins of public relations, one must consider what is meant by “public relations.” What is generally termed as public relations today, with greater emphasis on managing communication between publics and the client, began to take shape over the past century. However early methods used by public relation practitioners and the goals for which these methods were utilized are millennia old. Kings and religious leaders throughout time have used persuasion to reinforce their image of power or to spread a truth deemed critical to the populace. Monuments and statues declaring the insurmountable power of leaders and decrees or writings of early religious leaders were used to persuade people to act in accordance with the creators’ goals or desires. The Renaissance brought increased public relation efforts in politics with the forced creation of the Magna Carta and the practices of political philosophers such as Machiavelli. The 1400’s saw the new world discovered, mercantile trade expand even further, and Gutenberg invent the movable type printing press. These factors stimulated new ways of thinking of oneself in relationship to others and increased the uses and means by which one could capitalize on persuasion. The usage and study of public relations has generally been led by the United States and can be seen through five stages: The Beginning of PR (1600-1799), Communicating/Initiating (1800-1899), Reacting/Responding...
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...The Technological Revolution on America Life Abstract: Future technologies will revolutionize life in the United States of America, and will affect the entire world population over time. Boldness, inevitability, and adaptability all led, or will lead, to the development of this issue. First, the paper will discuss how boldness, and only boldness, leads to accomplishments and boon. To succumb passively will not help achieve goals. Second, the paper will discuss the inevitability that technologies will advance due to human desire and how the want for profit is slaked. Lastly, the paper will cover how the world adapts to changing lifestyles and learn to utilize daunting revelations. It is unavoidable that society will advance, as it has done in the past, and humans will adapt to the changing life as known for decades. The book, Stranger in a Strange Land, written by Robert A. Heinland, as well as many other resourceful documents and sources, will assist in proving these points. Every person always seems to want the latest technology. This truth has existed for centuries and will never change in the future. With the invention of shovels, people wanted them because it was easier than digging with their hands. When cell phones were invented, people sought this new form of communication-on-the-go. When, in the book Stranger in a Strange Land, Valentine Michael Smith finds ways to levitate objects and make things disappear while standing twenty feet away, it is not a surprise...
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...The achievement gap is a very crucial issue for students all or the world today. Wagner (n.d.) focuses on two forms of the achievement gap, the first being the gap between the quality of schooling that most middle- class kids get in America and quality of schooling available for most poor and minority children. The second gap being the global achievement gap, the gap between our teaching and public schools in the United States versus all students from countries all over the world as a part of our global knowledge economy. McKinsey (2009) gives more details and statistics based on the number of differences in the achievement of white black and Latino students. McKinsey discusses the four different distinct achievement gaps between the United States and other nations; between black and Latino; students and white students; between students of different income levels; and between similar students schooled in different systems or regions (McKinsey 2009). McKinsey (2009) also discusses the gap between black, Latino and white students also known as the racial achievement gap. On average, black and Latino students are roughly two to three years of learning behind white students of the same age. A study showed alarming results that when comparing reading and math scores at the 8th grade level, 48 percent blacks, 43 percent Latino and 17 percent white were “below basic”(McKinsey 2009. Similarly, Wagner (n.d.) and McKinsey both emphasize the global achievement gap and the income...
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...Today in America as everyone can notice, obesity has become a major problem that affects all races, sex, demographics and all age groups. You can hardly turn on the television or listen to the radio without hearing a call to action to decrease the obesity rate in America. Obesity is influenced by many factors and habits; one of the factors often overlooked is technology. To begin with, due to advancement of technology our home and work environment have become so inactive to the point that we don’t move enough to burn calories for the body to burn excess fat. Additionally, technology enables us to gain excess body weight by allowing us to produce vast amount of food at a faster rate, by giving us easy access to a massive amount of entertainment right from the comfort of our sofas. And lastly, technology has contributed to the obesity problem in America by removing most of the manual and physical labors that we used to perform ourselves. We may not all agree on the main cause of obesity; countless hours of television, video games, fast food consumption and reduce physical activities can all be associated to the progression of technology. Technology has helped this world in so many ways that it is impossible to cover it all but when it comes to people being overweight technology create a major problem. Because of technological progression, there has been a revolution in the mass preparation of food that is roughly comparable to the mass production revolution in manufactured goods...
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...MGT/330 August 30, 2010 Eileen Broyles External and Internal Factors Companies have many factors that contribute to their business related decisions. Nintendo must consider the external as well as the internal factors while planning, leading, organizing and controlling their business. Being able to plan, lead, organize and control Nintendo will be able to connect with their employees and explain to the public how well their gaming systems have been all over the world. External factors may include such things as laws and regulations that enter the target market. Laws and regulations in regards to the governing agencies may force businesses plans to implement their plans. Companies should act accordingly when new laws and regulations are imposed. The economy can affect the financial means to carry out plans. On a local and global scale businesses can also impact revenue in regards to sales of products and services. The target market also will influence planning and innovation within an organization. Companies must take into consideration what the customers’ needs and wants are in regards to features and price. Internal factors can include culture and ethics set forth by the corporation. Culture and Ethics will impact how companies plan, lead, organize, and control daily business functions. Culture within a company can positively or negatively affect the speed of which products and services are available as well as the quality of services. Culture can be improved throughout...
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...themselves. As a result, what happens in the economies of foreign countries can rapidly affect the investors of countries halfway across the world. This has been the case for only ten years, and the reason why Friedman says its whole new ball game and that --- “the world is only ten years old”. The cold war no longer is a dominating system for understanding foreign affairs. We are now in a new international system Friedman calls “globalization”. The Cold war was characterized by division; now it’s characterized by integration, integration made possible by rapid-speed airplanes, cheap international telephone charges, satellite communication and more than ever, the computer and the internet. We now have an entirely new set of financial understandings to achieve. What used to be true is no longer necessarily true. As a result of information Arbitrage, we can no longer think like specialists, because what’s going on in this new world requires us to think rapidly and multi-dimensionally. We can no longer, for example, think only like financiers; we must understand policies, because what happens politically in one country can affect finances in another. How? Why? Because, we can invest in corporations and countries other than the U.S., for the same reason, we can no longer look at the weather patterns in just here in the U.S.; what happens with the weather in a foreign country might affect that country - markets in which we may have invested. Friedman uses the Lexus as a symbol...
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...boarding gate waiting to board a flight with a burger and fries I just purchased from Macdonald’s. It was in New Delhi, India. After I took that flight and flew into the United States, the first thing I saw after immigration was a Macdonald’s. But it was not just the twist in hamburger I saw that day. I never thought that fusion of two different cultures felt so appetizing. Americanization just didn’t bring a new form of food to the historic land of India, it was much more. India is a land of vivid taste buds, an emerging economy and home to a very wrong conception about American culture and Americanization imported with it joy, the wrong conception about American life, and hard work, which in fact are shaping the Indian culture today. As an Indian I have seen how local Indian flavors restricted American giants like KFC, Coca-Cola and PepsiCo to be successful in the Indian market. Who in the whole world ever thought that KFC would include more vegetarian options than chicken on its menu? In his article “In 2000 Years, Will the World Remember Disney or Plato?” Mark Rice-Oxley frames a picture in our mind through his writing, describing a usual American day but in London. Thus leading us to his main argument, in 2000 Years, Will the World Remember Disney or Plato? He claims basketball is climbing the ladder, becoming more important in our lives each day and it’s not just basketball, but we are under the skies governed by American soft power. We can find, through examples, in the article...
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...stick out more than others. Events that affect us still today in our current society. For example, the 13th, 14th, and 15th amendments, and the assassination of Abraham Lincoln. Things that we don’t really think about in our day to day life; but maybe we should be. The 13th amendment was passed by Congress January 31st, 1865 and ratified by the sates on December 6th, 1865. This amendment formally abolished slavery in the United States of America and all of its controlling lands. The 14th amendment was ratified July 9th, 1868. This amendment granted all people who were born or naturalized citizens the right life, liberty, and property and forbidden states to deny anyone these rights. Then the 15th amendment which was ratified on February 3rd, 1870 but was not fully realized until about a century later. This amendment stated that no citizen’s right to vote should be denied due to race, color, or previous condition of servitude. Furthermore, The Jim Crow laws where one of many reason the 15th amendment was not fully realized until about a century later. Jim Crow who was a Democrat to the fullest was very anti-black. In a sense he created segregation by starting what we called the Jim Crow Laws. These laws allowed states to skirt the 15th amendment and discriminate those who were not white. These laws made black separate from whites. They were separate but equal. Those allowing discrimination to continue. These amendments affect us today not just because they are still a part of...
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...density in the United States of America is about 73 individuals per square mile. This number is the average for the entire United States but there are areas of that far exceed that average. Population density can have a profound effect on the daily life of average Americans. A town with 20 people per square mile will have different issues than a place such as Guttenberg New Jersey which has 58,000 people per square mile. Areas with high population density can have issues such as decreased privacy and excessive population noise. In most cases, as population density increases, that larger population will produce more noise and more areas will be crowded. Individuals that live in areas where high population density exist also have a harder time maintaining privacy, so person's territorial tendencies must change and adapt. In order to fully grasp the concept of how population density affects the average person the concepts of personal space and privacy, territoriality, and noise must be understood. Noise The idea of noise is very subjective issue. What is considered noise to one person can be music to another person ears. Technically speaking the definition of noise is sound or a sound that is loud, unpleasant, unexpected, or undesired. When discussing noise it is so important to identify and classify noise by different characteristics such as amplification, Timbre, and pitch which are all physical attributes of noise. Decibels are used to measure how loud a noise is or its amplification...
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...How might the repayable launch aid for Airbus change its decision making on launching a new aircraft? What are the potential consequences for (a) Boeing, (b) airlines, and (c) the profitability of both Boeing and Airbus? Boeing: • Launch aid • Government agencies Airlines: • Price per aircraft • Accommodating runways • Increase in costs The probability of both Boeing and Airbus is: Pull fundin When Airbus originally received government aid in the 1960’s, it was a new enterprise. Today it is the global market share leader in the commercial aerospace business. How do gains in market share affect the legitimacy of claims for subsidies? Over the life of Airbus, it has grown into the global market share leader in the commercial aircraft industry. Gains in market share affect the legitimacy of claims for subsidies and in Airbus’s case as they have gained a larger market share their subsidies have gone down. Eventually these subsidies will almost become nothing as is continues to grow. The government organization do benefit from these subsidies they lend. The space subsidies are repayable with interest so the subsidies are legitimate. Suppose the effect of the legitimacy of the claim for subsidies is going down when the company became stronger. The subsidies have to oppose as the company’s power because of the company become stronger, they do not need to get subsidies. Otherwise, if the company market share loses, subsidies must be increase. The company is a global...
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...HEADLINE: It's a Flat World, After All BYLINE: By Thomas L. Friedman. Thomas L. Friedman is the author of ''The World Is Flat: A Brief History of the Twenty-First Century,'' to be published this week by Farrar, Straus & Giroux and from which this article is adapted. His column appears on the Op-Ed page of The Times, and his television documentary ''Does Europe Hate Us?'' will be shown on the Discovery Channel on April 7 at 8 p.m. BODY: In 1492 Christopher Columbus set sail for India, going west. He had the Nina, the Pinta and the Santa Maria. He never did find India, but he called the people he met ''Indians'' and came home and reported to his king and queen: ''The world is round.'' I set off for India 512 years later. I knew just which direction I was going. I went east. I had Lufthansa business class, and I came home and reported only to my wife and only in a whisper: ''The world is flat.'' And therein lies a tale of technology and geoeconomics that is fundamentally reshaping our lives -- much, much more quickly than many people realize. It all happened while we were sleeping, or rather while we were focused on 9/11, the dot-com bust and Enron -- which even prompted some to wonder whether globalization was over. Actually, just the opposite was true, which is why it's time to wake up and prepare ourselves for this flat world, because others already are, and there is no time to waste. I wish I could say I saw it all coming. Alas, I encountered the flattening of the world quite...
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...Globalization And Your Business, Community and You Indiana Wesleyan University Globalization is becoming a buzzword in today’s society but what does it really mean in affects to your community, business and you personally? Globalization merges are economies social interactions, and cultures together making the world interdependent on one another. The importance of viewing the world as a whole and less as a sovereign of nations is becoming more evident as cultures blur, economies blend and the people are subject to the diversification of interacting with others whose traditions, beliefs and ethical views vary from our own. Recently, I asked two individuals, Doyle and Todd, to discuss their views of how globalization as touched their community, business and them personally. They have also expressed their view of whether these impacts have been positive, negative, or a combination. While globalization touches almost every one, the distribution channels are uneven in concentration with the heavier industrialized nations being harder hit. There was mixed reviews on globalization and its impact with my interviewees. Doyle, whose community is immersed in the steel industry, views the overall effects as negative. Low prices seem to be the driving force due to this market’s competitive environment where price is dominant over product features. Also, the U.S. industries find it hard to compete when foreign governments subsidies steelmaking, have less concern over the environment...
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...the new board builders. The overwhelming sense of tradition and respect for the roots of the craft is strongly woven into the every individual in todays industry (prior to the start of Asian manufacturing of surfboard “pop-outs”). For these reasons amongst others, the board building industry is different than most other industries and does not follow normal patterns of globalization. The advancements in technology over the years, opportunities for cheaper labor and alternate materials have not changed the way the industry operates. Even with the addition of technology and manufacturing procedures, the fundamentals of how a board is made has not changed since it was first made in the late 50s. The industry is very exclusive, but not closed. There has been no opposition to globalization; globalization has kept the industry progressing forward. Most master shapers (people who sculpt the surfboard) and glassers (people who do the fiberglass sealing) take on apprentices to further spread the craft. Not only do they spread knowledge of board building but also the traditions and values surfers that surfboard builders share and abide by. The process started in a small town in Southern California has been Petersen 2 ! shared globally through the decades. The advancement of surfboard design and application of new technology to...
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