...States Economy By looking at the past five years of data, it is clear that the United States economy is in a state of rebound from the Great Recession. The data shows that before the recession the United States’ economy was operating at a solid level. The recent numbers show that the economy is on its way back to the state it was in before the recession hit. The Great Recession began in December 2007 due to major factors that lead to economic turmoil. Causes of the recession include failure of the federal to stem the tide of toxic mortgages, breakdowns in corporate governance, a excessive mix of risky barrowing by the households and wall street, key policy makers were not prepared for the crisis, and breaches in accountability and ethics at all levels. Due to the combination of these factors the Great recession was started and did not officially end until June 2009. During this time the unemployment rate took an all-time high and GDP growth was slowed down and at one point went negative. This was a rough time for the United States financially. Many people were in debt and did not have a job. The housing market also crashed, leaving Americans with little money and high prices on real-estate. Consumer cutbacks took a major increase, which also increased inflation, which lead to the decrease in GDP. Although the recession ended in 2009, it was the worst year for the United States unemployment rate. The annual unemployment rate in 2009 was 9.2%. The most recent unemployment...
Words: 1290 - Pages: 6
...Project Report On Impact of Recession in India Submitted to: Submitted by: Mrs. Kawaljeet Kaur Harsimranjeet Kaur Regd: 625241502 In the partial fulfillment of the requirement for the BBA degree course of the Swami Satyanand College of Management & Technology. INDEX Introduction to recession Definition of recession Attributes of recession Causes & Effects of recession Stock Market & Recession Recession & Politics History of Recession Current crisis in the US Impact of recession in India Consequences of US Recession Conclusion Bibliography Acknowledgement If words are considered to be sign of gratitude then let these words convey the very same. I am highly indebted to lecturer Miss. Shveta, who has provide me with the necessary information and also for the support and her valuable suggestions and comments on bringing out this report in the best way possible. I feel great pleasure to cordial thanks to all faculty members of management department of SSCMT who sincerely supported me with the valuable insights into the completion of this project and I am thankful to that power that always inspire me to take right step in the journey of success...
Words: 5577 - Pages: 23
...I personally know quite a few people that used to work there and saw firsthand the hardships they went through. It was not only individual families that suffered, many small businesses had to close their doors as well. The plant closure changed the landscape of the city of Moraine. How has the recent recession affected you, your family, or someone that you know? Personally the recession has not affected me very much. Fortunately I work in an industry that is almost recession proof, I work for Pepsi cola and only saw a minimal downturn in our business ( we fat Americans love our sugar water). There are several people that I know that are not as lucky as I am though. My neighbor lost his job in a machine shop two years ago and has since been working two to three jobs since then just to make ends meet, and his is definitely not an isolated case. My cousin works in the flooring industry and went through several lean years due to the decline in new construction. So I would count myself very lucky that things have been stable in my household. What has happened to local businesses because of the crisis? It’s hard to even begin to list all of the business in the area that have closed due the economy. Before the G.M. plant in Moraine closed this was a thriving blue collar city. It seemed like everyone had a new car and a nice home to live in. Since the closure in 2008 most of the businesses around the plant have closed. The most prominent business closure was a bar and music venue...
Words: 695 - Pages: 3
...Chapter 1-Economic Factors Throughout this chapter I shall be investigating Rolls-Royce and how their operations are influenced by the UK and Chinese economies. I shall also be contrasting the challenges faced by them in two different business environments. Introduction to Rolls-Royce Rolls-Royce (RR) is a renowned, prestigious car-manufacturer and more recently aero-engine manufacturing company. They were founded by Charles Stewart Rolls and Sir Frederick Henry Royce in 1906, resulting from a partnership established in 1904. Although known for being British, the German car company Volkswagen bought the company for £430 million in 1998. Economic stability in the UK and China Economic stability: “Economic stability refers to an absence of excessive fluctuations in the macro- economy. An economy with fairly constant output growth and low and stable inflation would be considered economically stable.” - http://www.businessdictionary.com/definition/economic-stability.html To be economically stable requires an economy to have an absence of: frequent recessions, a pronounced business cycle, high or variable inflation rates, frequent financial crisis or a high unemployment rate. The UK is prone to a variety of these issues and as a result would not be considered to have “economic stability”. However, recently the economy is on the rise and therefore is on a stable recovery. This is why over the past few years’ sales of RR cars have increased in the UK. Economic stability is crucial...
Words: 1856 - Pages: 8
...The Economy During The Recent Recession Joanne Cartier Mr. Fant ECO 100 March 15, 2013 A recession is defined as a decline in a country’s GDP (gross domestic product) or when the economic growth in negative, two or more consecutive quarters. The state of the economy during the most recent recession was the worst since the Great Depression. In 2008-2009, the economy decreased within five quarters, including four quarters consecutively. Two quarters showed a decrease more than 5% and Q2 in 2008 dropped 8.9%. This was the lowest drop in a recession since the Great Depression. In Q3 2009, the recent recession ended, because of economic stimulus spending. The recent recession was the longest since the Depression, lasting 18 months. The recession officially started in late 2007 to mid-2009. The Economic Security Index determined the impact of the recession by developing a measurement tool based on government economic data. The tool showed that due to the decline in income, increase in medical spending or both, Americans experienced a financial loss of 25 percent or greater. Southern states showed the worst economic losses from 2008-2010. Researchers found various reasons linked to these states hardship such as, poverty rates, the amount college graduates and unemployment rates. During the last recession, the national unemployment rate was at 5.0 percent making it the lowest in 2.5 years. From December 2007- June 2009, employment decline was the greatest of any...
Words: 1614 - Pages: 7
...The Global Financial Crisis: Impact on Bangladesh A.K.M. Atiqur Rahman Professor Department of Economics North South University Overview I. Introduction: Genesis and Spread of the Crisis. II. Global Recession and LDCs III. Impact on Bangladesh IV. Recession and Export from Bangladesh V. Exchange Rate Movement VI. Remittance VII. Import and Tax Revenue VIII. Overall Impact IX. Policy Implications I. Introduction: Genesis and Spread of the Crisis. • Root: Mispricing in the Massive Credit Default Swap Market • Sub prime Mortgage: Bank transferred credit risk to third party through the process of securitization ( MDS, CDO) • Reckless growth of sub prime mortgage-lower yield in risky mortgage • Arbitrage drove the yields on all bonds & loans down • Expansion of consumer credit, housing price bubble Intriduction continued • Unsustainability of Credit default swap and subprime mortgages exposed • Housing bubble burst → mortgage default → foreclosures→ bank and insurance failure→ credit freeze • Spillover of financial crisis to real economy through virulent credit crunch →depressed aggregate demand • Sub prime mortgage default led to spillover effects around the world (Europe and emerging economies) via an elaborate network of derivatives Continued . Global consequence of the crisis includes: • Sharp rise in Unemployment in the US, Job loss in few other countries • Sharp fall in the stock market price around the globe, current...
Words: 2083 - Pages: 9
...labor force to other countries * Inflow of foreign currency * More Business Activities in Economy * No adverse impact of Recession in Economy * Contribution in Capital Formation * Contribution in Public Revenue * Other advantages of Indian demographic | | Introduction A HAPPY development in recent times has been the increasingly frequent talk about the positive side of our country. Since Independence, we have been generally witnessing only a series of negative cynical comments in the media. As Indians we must be the most self-critical set of people in the world, but this mindset seems to be changing. Among the positive talk has been the reference to India's demographic advantage. We are a billion strong — in the same class as China — and we also have an edge over China. Thirty seven (37) per cent of our population is in the 15-35 years age group against 25 per cent in China.This at a time when developed countries are having a declining population, most of which is becoming increasingly grey. The social security systems in these countries, which require that those who are employed and earning should contribute, can pose a major problem in the near future. Another advantage of India's one billion-strong population is that it provides a huge market. But there are reports to show that in the decade since liberalization, the number of people below the poverty line has gone down significantly though there...
Words: 1707 - Pages: 7
...industry is an essential piece to the economy of the United States. Currently, there are about 850,000 manufacturing workers and 1.8 million auto dealership workers that are employed in the automotive industry today (Amadeo). This industry was and continues to be negatively impacted by the recession that has plagued our nation’s economy since 2008. Unemployment has been one of the biggest issues in the auto industry, along with the negative impact on the government and firms in the United States. Therefore, I will focus on how households have been impacted by the auto industry recession. This will include how unemployment affects households, why the auto industry needed to be bailed out and what areas of households have been hurt the most by the unemployment. A massive amount of job cuts in the American automotive industry was the result of a devastating recession that the United States began to face in 2008. Job loss results in immediate problems for workers and in turn, the household that worker lives in. When a worker loses their job, the entire family of that worker is affected because now that family cannot live the way it is used to living with steady income. This was a problem that 174,192 workers had to come up with a solution to, because that is how many jobs were cut in the 2009 automotive industry (Challenger, Gray and Christmas 2). The unemployment rate has risen from 7% in 2007 to over 25% in the automotive sector of the economy. Many workers that were laid off...
Words: 1175 - Pages: 5
...The current state of the U.S. economy is improving according to recent numbers that reflect a decrease in unemployment, coupled with an increase in both interest rates and GDP. All three factors are primary indicators in determining the wellbeing of an economy. The economy probably will never reach the numbers that we are accustom (pre 2008) in which real income is always on the rise, employment is below 5% and real GDP increases 4% each quarter. Unfortunately, we as Americans might have to get use to a new normal. The new normal is more of a reflection on our economic dependence on the global economy. The U.S economy is like any other major power whereas our growth will be somewhat dependent on the ability for other countries to afford our exports. While the U.S. is currently experiencing a growth in our economy, the same cannot be said for most of the world. In particular, the countries that we export a high number of goods and services are experiencing a slower recovery. Countries like Europe, who is our largest exporter, don’t have the revenue to match are current spending power. This will result in a budget deficit with a surplus in imports and a reduction in exports. When you have a higher budget with less revenue coming in then the amount going out, there will be a debt. This is bad for business because it will lead to higher unemployment. The automobile industry is a prime example of a product that has been running at a deficit and how this deficit affects the U.S,...
Words: 856 - Pages: 4
...IMPACT OF GLOBAL RECESSION ON READY MADE GARMENTS INDUSTRY OF BANGLADESH IMPACT OF GLOBAL RECESSION ON READY MADE GARMENTS INDUSTRY OF BANGLADESH Prepared for: Dr. Muhammad Ziaulhaq Mamun Course Instructor Research Method (K301) Prepared by: Nabeel Khan (ZR-29) Farwah Tasnim (ZR-40) Rasheeq Rayhan (ZR-45) Sayan Muhammad Rafi (ZR-48) Rafat Shamim (ZR-51) Ishmam Rahman Abedin (ZR-53) Bushra Barkat (ZR-54) Institute of Business Administration University of Dhaka June 30, 2012 30 June 2012 Dr. Muhammad Ziaulhaq Mamun Professor Institute Of Business Administration University Of Dhaka Dear Sir, Here we present the report “Impact of Global Recession on Ready Made Garments Industry of Bangladesh”. In this report we tried to analyze the current RMG industry scenario and the various factors associated with it which have been influenced by the global financial crisis. We believe our report will facilitate strategic planning for both the decision makers in the market and identify possible counter measures and new possibilities. We hope the report meets your expectations. We will be glad to answer any query about the report. Sincerely yours, Nabeel Khan (ZR-29) Farwah Tasnim (ZR-40) Rasheeq...
Words: 14568 - Pages: 59
...quarters then that is classed as a recession and the government should take action to help stimulate the economy. The worst most recent recession started in the 3rd quarter of 2008 and lasted for 7 consecutive quarters until the 4th quarter of 2009! In this essay I will discuss how different types of industry are affected by a recession and will look how some are often better than others. One of the main changes in a particular industry during the recession was the Fast Food industry. During the recession these industries seemed bulletproof to the dramatic decrease in luxury spending due to the increased price of necessity goods, some of which I will discuss below. The first company which have been doing well whilst England have been dipping in and out of recession is KFC, they have seemed to reap the benefits of people having less money to spend whilst being able to put back into the economy by creating jobs, this is shown by in Worcester the ‘Job Centre’ was approached by KFC to fill 70 jobs that were to be created, this story was published to BBC news on the 27th of October 2008 which was not long after the 3rd quarter of 2008 meaning this was when the recession firs began. Also on the 16th February 2009 BBC news published another story quoting KFC on ‘creating 9000 jobs over the next 3-5 years’ this is a staggering figure and one that was created during a heavy recession, they even said themselves they were ‘doing good business during the recession as people were drawn to cheaper...
Words: 1371 - Pages: 6
...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...
Words: 1720 - Pages: 7
...India too has been impacted by the crisis – and by much more than it was suspected earlier. The four major questions that have been raised are: * Why has India been hit by the crisis? * How has India been hit by the crisis? * How have we responded to the challenge? * What is the outlook for India? Why Has India Been Hit By the Crisis? There is, at least in some quarters, dismay that India has been hit by the crisis. This dismay stems from two arguments. The first argument goes as follows. The Indian banking system has had no direct exposure to the sub-prime mortgage assets or to the failed institutions. It has very limited off-balance sheet activities or securitized assets. In fact, our banks continue to remain safe and healthy. So, the enigma is how can India be caught up in a crisis when it has nothing much to do with any of the maladies that are at the core of the crisis. The second reason for dismay is that India's recent growth has been driven predominantly by domestic consumption and domestic investment. External demand, as measured by merchandize exports, accounts for less than 15 per cent of our GDP. The question then is, even if there is a global downturn, why should India be affected when its dependence on external demand is so limited? The answer to both the above frequently-asked questions lies in globalization. First, India's integration into the world economy over the last decade has been remarkably rapid. Integration into the world implies...
Words: 2672 - Pages: 11
...Examine the factors leading to the global financial crisis of 2008/10. Evaluate the impacts of this crisis on EITHER a) a country of your choice OR b) a business of your choice. In this assignment I will be discussing the factors that caused the global financial crisis of 2008/2010 and will be evaluating the impacts of the crisis on the UK economy. Firstly a recession is defined as a period of negative economic growth for two consecutive quarters. This means there is a fall in National Output and National Income. Inevitably a recession will involve higher unemployment and an increase in government borrowing. (Economic help, 2008, www.economicshelp.org, accessed on 24/11/2010) The financial crisis of late was caused by factors including, subprime lending, complex financial systems, greed, high oil prices, globalization and the collapse of the Lehman brothers. All of these factors will be explored throughout. Subprime mortgages are a big factor when talking about the recession, Justin Pritchard states that subprime refers to a borrower that is not prime. These are borrowers who might be less likely to repay a loan and therefore default. Subprime borrowers may be classified as subprime. Banks offered loans to people in the subprime category often putting more interest on the loans as they are a greater risk for the bank however the banks were happy to take on the risk as they could receive a greater interest rate back. These subprime mortgages were to have a big impact on the...
Words: 3557 - Pages: 15
...Introduction World economy is facing recession today. Every country with largest economy has been affected by that. Largest economy country such as USA’s economy has fallen. As everything is now globalized all the country of the world has felt impact on different degrees. Bangladesh’s economy is going upward day by day. Being so conservative with economy Bangladesh has somewhat stopped the bad effect of recession. Since Bangladesh is a developing country it is not safe from any global effect. Bangladesh’s economy is in a vulnerable position. Globalization has liberated the business among the countries of the world. Now open market method or free trade has increases the competition between countries of the world. Bangladesh’s economy is not in such condition though it has made progress. Bangladesh’s political instability and deficiency in international matters are some impediment of its growing economy. Still we are dependent on import which is also a cause of vulnerability. Our trade system and keeping away from the global matters also are hampering the growth. As a developing country our economy is not an established economy. So our financial budget of every year is a deficit budget. We have to much depend on foreign help. Being industrially backward our export products are declining which causes a negative impact on the balance of trade. We have to concern in utilizing the resources. Development programs are always going on which need machinery that we have to buy from...
Words: 1976 - Pages: 8
