ECONOMIC CRISIS

Effect of Economic Crisis on Business

Effect of Economic Crisis on Business

Abstract

Months and months we are talking about, and it is the cause of all our problems and our problems. Economic crisis is particularly responsible for the sluggish market, unemployment and employment difficulties, Labor nonwage increase. The phenomenon is not new with several episodes already known to the world economy. Nearly 11 trillion in household wealth has vanished, with retirement accounts and life savings swept away. Businesses, large and small, have felt the sting of a deep recession. There is much anger about what has transpired, and justifiably so. Many people who abide by all the rules now find themselves out of work and uncertain about their future prospects.” When reading this information, you may think it may be the status of a certain poor country.

Introduction

The economic crisis of 2008-2012 has been initiated in the early months of 2008 worldwide following a financial crisis erupted in the summer of 2007 (originated in the United States with the subprime crisis). Among the main factors of the crisis include the high price of raw materials (oil in particular), a food crisis worldwide, high inflation globally, the threat of a recession in the world and finally a crisis credit resulting in collapse of confidence of the stock markets. It is considered by many economists as one of the worst economic crises in history; second only to the Great Depression began in 1929. The financial crisis broke out in August 2007 was followed by a recession, which began in the second quarter of 2008 and a serious industrial crisis (following the collapse of Lehman Brothers on 15 September) broke out in the autumn of the same year - the largest proportions in which great crisis a sharp decline in production and orders. The first consequence is the collapse of the financial markets.

Its symptoms are always the same with a sudden deterioration of the economic situation and outlook. The economic crisis at the same time knows no boundaries and can extend to the world if the parameters allow. Its duration is not known from several years at best and producing economic downturn, at worst, a recession, with all that it can lead to bankruptcies, unemployment, job losses and social unrest. Among the major crises of the impact on the economy consistent, those of 1929 and 1974, called cycle, they are today still special and difficult to predict and manage. Current history demonstrates otherwise perfectly again. Because after a period of prosperity, comes the recession and the depression. These three periods are, in cycles, shorter or longer and can be juxtaposed in time. In other words, just wait until it passes. Patience we must also acquire this again. The year 2009 has also seen a widespread economic crisis, recession and heavy dizzying collapse of GDP in many countries around the world and especially in the Western world. After the recession in the third quarter of 2009, between the end of the same year and the ...