Business in Times of Global Recession



Abstract

This study is going to determine how the global recession has altered the pattern of doing business in present world. It is a common belief that global recession always compels businesses to innovate and explore new ways of doing business. Global recession strike the businesses financially and leave an impact over companies operating in the regions that are considered center for emergence of such crisis. The present global recession is just the beginning and analysis of the foreign policy of major players of the global economy, it can easily be claimed that the recession is not going to be resolved very soon, and no indications have been observed that major players of the global economies are making endeavors for the resolution of this problem. Businesses are facing problems to operate in this period of global recession. This study in this connection will analyze the effect of global recession on businesses and how the business patterns have changed because of the recession.

Business in times of global recession

Introduction

Global recession is one of the worst experiences that businesses are facing today, and that cannot be either quickly nor easily be resolved. From the business perspective, such activities of economical downturn have the hardest impact on the economies that are currently at risk. Similarly, the current IMF report states the same scenario as the poorest countries of the world will going to be badly effected through the global recession that the world is facing today, as the disaster is being integrated into the international market. The effect of this global recession is hitting the third world countries as counties are focusing on globalization. The current wave of third global recession is the continuation that first hit the advanced economies, then emerging economies and now effecting businesses in the vulnerable economies by down-turning the foreign investment, trades and remittances.

The major and the most significant aspect of any business are based on the trust that countries are losing mainly because of the recent crisis the world is facing today. As the countries are facing so many uncertainties, so it is vital for businesses to build, maintain and develop relationships with countries. In order to maintain or build relationship and trust, businesses in the times of global recession is now focusing more on maintaining the corporate social responsibilities. These CSR activities will help in developing the innovative thinking and creative approach in the businesses, in order to overcome the crisis and change these recessions into the opportunities that help them in flourishing their trades.

Body of the Paper

If we talk about the Global recession or the financial crisis, it began in the year 2007 in United States. Global recession took it full-scale or pace in the year 2008-09, affected each and every economy. Besides these, the economies which are not related financial crisis are also badly affected. Even the most developed economies and nation slowed down due to the global recession. Businesses collapsed, interest rates have been cut throughout the ...