NEW ECONOMY

New Economy



New Economy

The Implications Of Operation Management

If the business activities are operated in a proper manner, it becomes easier for the management to generate higher profits in the future. The usefulness and benefits of the operation management facilitates the World Economy and has significantly contributed in achieving its present position in the world. The Operations Management has provided the following benefits:

It reduces the cost of the business operations and allows the manager to set their priority of work accordingly. Operation management also facilitates the managers to arrange the business activities on a timely basis so that they can obtain desirable results in the future.

Operation management has enhanced the profits of World Economy by giving its manager enough time to assess their business operations so that each and every step in business activity is performed in a better manner. In this way, the rules of operations management increased the profits of the World Economy.

By adopting proper system of operation management, business personnel have saved the investment expenditure of the company that they otherwise spend to enhance their business activity and profits in the future.

The operations management also provides the basis for future improvement in the business system of the company. As the World Economy has also adopted the efficient system of operation management, company has made important position in the world by making improvement in its services and facilities.

New Economy and Its Effects

The concept of new economy initiated from the United States. The US market was offering home mortgage and secured loans to the sub-prime market. The borrowers were trying hard to make the payments on the loan. The number of defaulters increased at a rapid pace due to the increase in the adjustable mortgage-rates. The greater number of defaulters led the banks to lose large amounts of money. It is necessary to understand that all the banks are tied together. The investors were exposed to extremely opaque and risky securitized debt products. Estimates of the total losses, resulted from sub-prime mortgage problems, were approximated to $400 billion. The lack of transparency added to the complications, created by the sub-prime crisis.

Countries such as the United States and United Kingdom have their central banks. This helps them to provide loans to countries across the world. The bank, Northern Rock, is a good example of how the economy of UK has been affected by the new economy. Northern Rock was a bank based in United Kingdom having a large number of investments in the sub-prime market of United States. Due to the falling of the sub-prime market, the banks lost huge amounts of money. In the year 2007, if Northern Rock was not bailed out, it would have had to shut down its operations.

This paper discusses the effects of new economy on United Kingdom.

Discussion

The new economy was created globally due to the efforts that were made for rescuing the banks of United Kingdom, which had investments in the United States' sub-prime market. The banks of UK have been suffering as the ...