INTERNATIONAL BUSINESS ENVIRONMENT

International Business Environment

[Name of the Institute]

International Business Recession

Introduction

Recession means the general decline in economic activity from one country or region, measured by the decrease in the annual rate of Gross Domestic Product (GDP) for a sufficiently long period of time. There is no agreement in the literature about which is the period, although the time has come to spread the opinion issued by Julius Shiskin in an article published in the daily New York Times in 1975 on two consecutive quarters of decline as term defining the term. In this paper, I will discuss the prevalent economic recession in north-eastern parts of England and Scotland, discuss the economic theories of optimal development of Adam Smith and Michael Porter and efforts made to fight recession.

Economic Conditions of North-Eastern England

The economic wealth of the United Kingdom is, however, very unevenly distributed, concentrated in southeast England (including Greater London). In northern England, Wales, Scotland and Northern Ireland's economic situation is more precarious, having not yet fully overcome the problems incurred subsequent to the de-industrialization in these areas.

These differences are also noticeable in the labour market, which in recent years been experiencing a very significant improvement, but still has shortcomings regional consideration. While in the southeast of England could speak virtually full employment in certain areas of northern England and the autonomous regions unemployment still remains a problem, especially for less skilled labour collectives or particular difficulties. The economic crisis that began in 2008 unemployment soared throughout the country, especially affecting the southeast of England, which until then had enjoyed very influential figures. The unemployment rate stood at 6.5% of the population in January 2009.

Among the 10 cities with the largest number of businesses fail in 2011, seven are the most northern parts of northern England, Yorkshire and Humberside. The northern region of England and the Midlands has seen the fall of the properties of the average £ 174,053 in 2007 to 155,925 pounds this month. In the same period, in the south, the average price of homes increased by £ 285,137 to £ 311,037.

As revealed in the Observer today, the loss of jobs in the north of England is four times deeper than the rest of the nation, with 18% unemployment on the rise every year, compared with 4.5% elsewhere. There was an increase of 25% (31,000persons) in the ranks of the unemployed in the Northeast, 16.9% (44,000), in the northwest and 11.6% (23,000) in Yorkshire and Humberside. In comparison, there was an increase in unemployment from 4.5% (12,000) in the southeast of England and 10.4% (40,000) in London. In the southwest of the increase is even lower, 3.7 %(15,000), while West Midlands saw a decline in the unemployment rate of 7.4 %(19,000).

The minimum wage for those over 22 years currently stands at 5.73 pounds sterling per hour. In general, wages in the UK are beginning to find among the highest in Europe. However, it must be borne in mind that prices are well above the EU ...