... | |3 |Nurshia Jahan |13264009 | | Submission Date: November 17, 2015 LETTER OF TRANSMITTAL November 17, 2015 Dr. Salehuddin Ahmed Professor BRAC Business School BRAC University Subject: Submission of the report paper on ‘Global Financial Crisis: Recovery and Challenges’ Dear Sir, I hereby submitting the final version of the term paper on behalf of my group on ‘Global Financial Crisis: Recovery and Challenges’ that you asked us to submit on November 17, 2015 as our report paper. The paper is a part of the course Fin 603: Financial Institutions & Market under MBA program. The main purpose of this paper was to determine the theoretical aspects of global financial crisis and recovery and challenges analysis on the selected country named United States of America. This course gave us both academic and practical exposures, we have learned about the great recession and international financial markets and the term paper gave us the opportunity to develop the practical experience. We have tried our level best to complete this term paper with respect to the desired requirements....
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...2008 FINANCIAL CRISIS Name Course Date 1. Background The financial crisis commenced in August 2007 after the preceding inflation. The crisis became more defined throughout 2007 and gained momentum in 2008. This took place even after the financial regulators and the central banks’ tireless attempts to tame the situation. It is alleged that the main factors that influenced its manifestation include corruption, fraud, speculation, greed, bankers and bankers’ bonuses. However, the academic discourse, politics or media has been unable to solve the mystery surrounding the main causes of the crisis[1]. The mystery is academically relevant to the world of research just like the Great Depression, whose causes are still being discussed. Other sources believe that the crisis might have been as a cause of human failures especially following the refusal to bail out the Investment Bank Lehman Brothers. The housing bubble was the immediate trigger of the 2008 financial crisis. The following were the triggers under the housing bubble. I. Subprime lending A subprime mortgage is the mortgage that is readily acceptable without imposing strict measures of standard on it. Before the 2008 financial crisis, there existed a fierce competition between mortgage lenders. The competition between the mortgage lenders ensued from the struggle for market share and revenue. It also took place in tandem with limited supply of creditworthy borrowers which put unconditional stress...
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...Introduction: This paper reviews macroeconomic causes of financial crisis in 2008. The economist had difficulty for seeing the systematic risk because of the unregulated new financial instruments such as credit default swap and derivatives securities. The Federal Reserve Bank was responsible for the financial crisis due to large amount of money flow in the United States. Thus, US needed to implement the monetary policy in order to overcome from the financial crisis. This paper drafted the causes of financial crisis analyzed by the macroeconomist and drafted by the American Bar Association. The Federal Reserve Bank kept the interest rates historic lows due to recession in 2000-2002. The low interest rates causes the unwanted money supply and this excess credit was invested heavily in the United States in the form of treasury securities and financial derivatives that leaded to bubble in commodities and houses prices. This paper examines the Federal Reserve monetary and fiscal policy during and prior to course of recession in 2008. The economy had faced at least three crises since 2008, fiscal crisis, financial crisis and unemployment crisis. These crises are interrelated. The unemployment crisis during 2008 has causes the fiscal deficit at the frightening level. The economy is still facing the unemployment and fiscal crises. The unemployment rate remains high in the world and the fiscal problem in Europe has not been fully resolved. The Fiscal Policy: The fiscal policy played...
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...Abstract This paper analyzes the demand of Information Technology during different market conditions. This paper discusses the role of IT and its significance in the current world. It also discusses various market conditions that prevailed over the last few decades and their impact on IT. This paper mainly focuses on the recent recession and how is IT impacted and transformed during these conditions. Having discussed the history of IT in different market situations, this paper throws a light on future conditions and growth in the field of IT. DEMAND ANALYSIS OF IT IN DIFFERENT MARKET CONDITIONS Introduction Demand is an economic principle that tells us about consumers' want, readiness and their capability to pay a price for a specific good or service. It is a common belief that greater the demand, greater is the price of a good or service. But, what leads to the demand of a particular good/service is a complex analysis and is different for each good/service. Any business, before development or expansion, studies the demand for its product. This study of demand is a complex process. Based on this demand analysis report, a firm leadership would decide on extension or starting of the business. The demand analysis might help determine or justify a desire for expansion in a particular sector or just to assess the health of a particular sector. Even though the demand analysis procedure is performed differently based on the type of business or study, participants...
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...business and other activities are undertaken in the world. Examples of digital media are online journalism, blogging sites, and social media. The major concern in the ethics of digital media is the effect of information that is transmitted through these channels. Ordinarily, the role of digital media is to act as a medium of communication. However, in the case that the accuracy of the information is not controlled, it can lead to various impacts to the society. The digital media played a very significant role in the financial crisis through the spread of information. As such, this paper analyses digital media ethics in relation to the global financial crisis and its effects to the society. The World Financial Crisis The global economic crisis has caused many problems nearly to all the sectors of the economy in the world. Many countries have suffered deep in their growth domestic product while recession has a common experience all over the world. The severity of the crisis has persisted to the recent times, but this can be attributed to the debts incurred by some developed economies like Greece even after strong support from other countries. As a result, the world’s financial system experiencing these global economic crisis of severe staggering magnitude, there are those who believe that it will continue to be experienced across all sectors of the economy. The financial crisis is thought to have been caused by the United States mortgage market through its decision to sell sub-prime...
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...Reasons and Objections to Obtain an MBA Van Emery MGT 521 May 09, 2011 Walter Goodwyn Abstract In this paper the subject to address are the objections to obtain an MBA and argue the points with reason to obtain an MBA. The three main objections to entering an MBA program are: 1) Cost, 2) Time and effort required, and 3) Job availability in the current economic slowdown. Each argument against obtaining an MBA is countered with evidence that supports reasoning to obtain an MBA at almost any time, personal situation or career position. Reasons and Objections to Obtain an MBA Masters of Business Administration An MBA or a Master of Business Administration is a degree that provides training in the theories and practices of business management. An MBA degree certifies that the recipient has detailed knowledge of functional management roles found in most organizations. The MBA is recognized worldwide as a valuable asset for business and administrative careers. The first MBA program started in the 1900s and has evolved over the past century as the business requirements for a highly skilled management have become mandatory in the globalization of the economy. MBA programs have become specialized and more accessible to full-time workers. Some of the concentrations for an MBA are accounting, health care management...
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...Institution: Introduction In economics, a recession refers to a business cycle reduction. It refers to a general retardation of economic activities (Simon, 2001). Macroeconomic pointers like gross domestic product (GDP), investment spending, employment, capacity utilization, household income, inflation and business profits fall. This happens while unemployment and bankruptcies rates go up (Andrews, 2009). Recessions crops up when there is a general drop in expenditure. It follows the rising of an economic bubble or an unpredictable supply shock. Governments respond to recessions through implementing expansionary macroeconomic strategies. They tend to raise the government’s expenditure, increase money supply and lessen the amount of tax paid by the citizens (Andrews, 2009). In 2007, a global financial predicament rapidly metamorphosed from the bursting of the property bubble in the United States to the most horrible recession ever witnessed on the planet. This paper will research on the causes of the 2008-2009 economic predicament and the policies executed by various key people liable for saving the U.S. economy. It will also explain the task, constitutional authority, and the policy view of some current holders of key positions that set policies for saving the U.S. economy. In 2007, a worldwide economic predicament spread its gloom on the financial outcomes of several nations (Simon, 2001). It ended with what was often termed as the worst recession (Simon, 2001). Its source that originated...
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...series of major economic and financial problems. The events began with the financial crisis of 2007–2008, considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. It resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of US dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis. Affected by the global economic recession, Vietnam's economy in 2008 faced many difficulties even in the next period of time. It was hit by a large fall in export demand and foreign direct investment. All entities in the economy from firms to consumers had to suffer from the condition of the economy. The government cannot stand apart from this situation, many policies, stimulus packages and other...
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...Running head: CAUSE OF ECONOMIC CONDITIONS IN THE UNITED STATES AND THE UNETHICAL BUSINESS THAT LED TO IT Final Paper James Smith Hodges University GEB/PAD 6376 Dr. Forrer Week Due: 14 Due: 08/14/2011 Submitted: 08/10/2011 INTRODUCTION (Part 1) Why has the unemployment rate been above 12 percent for the last several years? Why have so many prior successful businesses closed in the last four years? Why have so many major corporations and publicly traded companies filed for bankruptcy? Why did a house that used to cost $200,000.00 just sell for $40,000.00? Why are foreclosures at the highest rate in US history? Maybe the question to ask is what has caused all of this? There are so many questions to be answered when it comes to the economic conditions in the United States. How did it get into the current condition? What were the signs of slipping into the crisis (economic indicators)? Whose actions were responsible? Was the responsible party also guilty of unethical behavior (big issue) or was it accidental. How long will it take for the economy to get back to being productive? In the past, America has been a very productive, successful country. There have been other recessions and a depression that have affected the U.S. but for some reason this current crisis was started by a completely different chain of events. What was the chain of events that triggered this current...
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... December 10, 2011 | | Abstract It is no surprise that the economy of The United States of America is going through a cyclical peak. During the various business cycles, economic indicators revealed how the economy is doing based on gross domestic product, employment, inflation, retails sales etc. This paper would critically examine the business cycle and its implications in terms of higher sales, consumer demands and labor cost. It will also analyze how economic indicators such as Real GDP, Unemployment and Inflation have been impacted by the current and unfortunate economic situation faced in the United States today. Introduction The United States, like many other countries, is experiencing a major change in its economic system; and it is currently coming out of a recessionary business cycle which saw the production of goods and services decline, and unemployment on the rise; but the economy is moving at a snail's pace, easing into a peak. The paper will focus on how to interpret the business cycle and explain the current business cycle in the United States through an in-depth and critical look at the economic indicators. These Economic indicators will reveal the current economic situation as well as help to forecast the future direction and growth of the economy in the long run. The Business Cycle What is a business cycle? Business Cycle is the...
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...Preliminary Draft February 20, 2010 THE GLOBAL ECONOMIC CRISIS AND SOUTH ASIA By Dr. Akmal Hussain, Distinguished Professor, Beaconhouse National University INTRODUCTION What began as a financial crisis in 2008 rapidly metastasized into a global economic crisis that pushed the world economy into the deepest recession since the Great Depression of the 1930s. In this paper we will examine the origins and nature of this crisis in the context of the dynamics of world capitalism, indicate the policy challenges in the process of recovery and analyze its impact on South Asia. I. STRUCTURAL CHANGE AND FRAGILITY OF THE FINANCIAL SPHERE In the process of its growth the world economy has undergone a structural change in the post war period in terms of two important features: (i) The dominant form of the production unit of goods and services that emerged in the post war period was the large multinational corporation (MNC) in contrast to the large national corporation in the late 19th century and the small firm in the late 18th century.1 The MNCs were not only able to sell goods and services on a global scale but were able to achieve internationalization in their production processes, such that different components of a particular good could be manufactured in their facilities in different countries to take advantage of country specific resource 1 For a more detailed analysis of Growth and Structural Change in the Global Economy since the Industrial...
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...Macroeconomics Fundamentals of Macroeconomics Paper Lisa Goodman ECO/372 8/20/2015 Laurie Klosk-Gazzale Fundamentals of Macroeconomics Paper Massive layoff of employees is huge problem skyrocketing the unemployment rate because companies are globalization which increase their profits and save the consumer money by giving jobs international instead of locally where minimum wage is higher. Calabresi (2015) “In an unhealthy economy, a single lost job becomes infectious, combining with others and spreading through family, neighborhood and community. Widespread cutbacks in spending by families mean lower demand for businesses and lower tax revenues for the government. This belt-tightening means fewer car sales and thus fewer jobs for car-part makers. It means less government spending on infrastructure and other public services, including economic development” (para, five). Decrease in taxes can be seen if we measure the nation’s wealth. We would look at the GNP (Gross national product. This look at how taxes affect output. We then would look at the aggregate demand equation. * C = consumption spending by individuals * I = investment spending (business spending on machinery, etc.), * G = government purchases * NX = net exports Cloutier (2015), “Consumer spending typically equals two-thirds of GNP. As you would expect, lowering taxes raises disposable income, allowing the consumer to spend additional sums, thereby, increasing GNP. Reducing taxes, therefore...
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...Analysis of the Business Cycle Tamika Williams Professor Amiel Managerial Economics & Globalization March 15, 2011 Strayer University ABSTRACT The purpose of this paper is to take an economical and statistical look of where the economy is headed for the next coming years. Review the outcome of the economy over the past three years and what direction it’s going. Based on this review, it will show the current state of the economy and the impact to the Oligopolist in terms of prospects for higher sales and labor costs will be highlighted. The economy has continued to remain small despite some economic growth over the past two years. It has been said the economy will continue to grow because of the positive turn around in 2009 but in my opinion I do not think so. Due to multiple factors that the US has experience over the recent years such as unemployment which is causing a financial burden on the economy, I cannot see the US making substantial come back. The loss of countless jobs has put a financial strain on the country; while ours who are still employed struggle to maintain their jobs and contribute to the unemployment rate which has continue to climb. As shown in Figure 1) a steady rise in the unemployment rate from 7.75 % in early 2009 to over 10% in 2009 and 2010. The unemployment rate continues to grow due to corporations expecting for the economy to continually to fail; Shareholders cut cost by cutting jobs. Even with the government making efforts to hire...
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... The Struggle for Teen Jobs 2 The Struggle for Teen Jobs If jobs are scare today, where can teens learn about managing money, job experience and what type of career they might be successful in and where they want to go in life. The percentage rate in Ohio is at 67%, California is 32.7%, and the lowest is in Nebraska at 9.7%. The adult unemployment is at a high of 7.3% and growing faster everyday with the economy. Teen unemployment can also hurt the family income, for the parents are unemployed and they cannot even find jobs. The teen unemployment figure is simple alarming, while the rest of the country is in an economic recession. The percentage of teen job loss in the past two years, is greater than all U>S> workers the first five years of the great depression of the 1930’s.The employment rate amomg teens is dismal with the rates of teen unemployment varing from stae to stae.. Your teen is competing with adults looking for jobs because their one family income cannot sustain the increase in food, gasoline, education and all the expenses thy have to cover to provide for their families. Most of us come to that retirement age and we think that we can retire but we find out that our retirement money will not sustain through the rest our lives , so the older generation have to work longer which is also taking the jobs away from our...
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...Research Paper 1) Title, author and full quoting reference : “Efficient Supplier or Responsive Supplier? Home or Overseas? An Analysis of Sourcing Strategies under competition.” - Xiaole Wu - School of Management, Fudan University, Shanghai and Fuqiang Zhang Olin Business School, Washington University. Published online in Articles in Advance January 27, 2014. 2) Contextual Background: reasons and interests of the research Motivated by the recent back shoring trend, this paper studies a sourcing game where competing firms may choose between efficient sourcing (e.g., sourcing from overseas) and responsive sourcing (e.g., sourcing from a home country) Efficient sourcing usually provides a cost advantage, whereas responsive sourcing allows a firm to obtain more accurate demand information when making procurement decisions. By characterizing the equilibrium outcome, we find some interesting results driven by the strategic interaction between the firms. The chapter is based on cross-sectional data, required in order to address the proposed research questions and help understanding “how much” and what kind of manufacturing will be housed in western countries in the near future. 3) Question of research Based on the characterized equilibrium, we conduct a comparative statics analysis to examine: What are the recent market changes (e.g., the shrinking market sizedue to economic recession, the increasing labor costs in emerging economies, and the rising global commodity...
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