The investors in US withdrawn money from the market and the US economy entered into a financial recession. Most of the countries which are related with the US economy also got affected by the US mortgage crisis. Countries who were exposed to the mortgage securities were the first one to get adversely affected like European countries were badly affected by the financial crisis as they were also involved in the mortgage securities. Most of the financial institutions across the world suffered because of their purchase of bonds which were supported by the risky home loans and collateralised debt obligation commonly known as CDO. Once the subprime crisis offset in USA, the investors who invested in these instruments incurred loss. More the investors lost trust in the financial instruments and hence the financial markets got affected by the crisis (New York Times, 2007). The default of the subprime loans caused a ripple effect which first hit the mortgage companies and the lenders which in turn affected the real estate sector as they were not able to sell the more houses as they use to sell during the boom of the subprime loans. Loss of the real estate sector in turn affected the US financial markets and the US economy. With the era of globalisation almost all the countries’ economy are related to one another because of the financial and trade ties. Hence most of the countries around the world felt the heat of the credit crunch of the US economy. But, the extent of the affect of US mortgage crisis is different to different countries. As per the CEO and MD of Citi Group Asia Pacific (Markets and Banking) the effect of the US financial crisis has been limited. As per him the investors may concentrate more in emerging markets for long term growth (Rina Chandran, 2007). As per the chief economist of the World Bank for South Asia Shantayanan Devarajan, the countries in the South Asian region will not be adversely affected by the US mortgage crisis because the countries in that region are not much exposed to the mortgage securities of the US. More over the countries have enough liquidity available in their domestic markets (World Bank, 2011). There are also reports that the equity markets of the Arab countries faced very less impact of the US financial crisis. The main reason behind the immunity of the Arab markets is cited as the major market players of the Arab financial markets have least expose to the global markets. More over it is also cited that the Arab banks have performed quite well in the past
The subprime crisis was triggered by the subprime loans. The financial institutions issued subprime loans to customers with low credit worthiness at lower interest rate, as the mortgage rates were changed the customers started defaulting the loan payment as a result the financial institutions suffered heavy loss. …
The aim of this study is to investigate the impact of the global financial crisis on the UK property market. This will involve seeking data that will reveal the direct financial impacts of the crisis on the property companies, the impact on property consumers in terms of confidence and patterns, the strategic management adaptations to the crisis and the impacts of such responses.
The paper studies the careful analysis of the global turndown, its effect on the market and the industry of luxury goods in particular. Various analyses of the companies have been done and comparative analysis has been carried out to understand the difference created. The reviews from the employees and the customers have also been combined to know the popularity of the implemented system.
The concept of corporate governance achieved acknowledgment since the 1980’s, when corporate organizations began exercising it as a benchmark ethical measure intended for accounting and financial reporting in addition to other fair practices. Formerly, corporate governance was defined as a standard collection of guidelines that is exercised to administer and implement control over corporate organisations.
The recent global financial crisis have brought to the fore issues and weaknesses in the international market for investments and securities, drawing concern to the financial health and operational continuity of potential equity investments. These concerns are exacerbated by the lack of transparency in the manner corporations operate, further undermining efforts to establish an international financial accounting standard and norms for the conduct of ethical business.
Despite the benefits, globalization has also created the phenomenon of the global financial crises and the worldwide economic recession that typically follows it. Prior to the globalization of the financial system, banking panics were usually contained within individual nations, and faulty national policies had little repercussions beyond the boundaries of that particular jurisdiction.
As a result a large number of commentators have sought to point the finger at various activities undertaken in the global financial markets. Derivatives are one. Warren Buffett notably called derivatives instruments “weapons of mass financial destruction”.
The real estate crisis that started in the US turned in a global economic recession around all corners of the globe leading to a plunge towards global financial meltdown. The strong and emerging economies of the world were in turmoil of liquidity crisis. There were some economies which were, however, resilient to the shock of the global economic crisis.
Behaviour 19 2.5.Empirical Evidence of Changing Consumer Behaviour - Flatters & Willmott (2009) 26 2.6.Empirical Findings from Regional Surveys 27 2.7.Impact of Financial Crisis on Consumers Residing in the United Kingdom 29 2.8.Literature Gap 30 2.9.Chapter Summary 31 Chapter 3 - Research Methodology 32 3.1.Introduction 32 3.2.Research Method Used in the Study 32 3.3.Data Collection 35 3.3.1.Survey Design 35 3.3.2.Sampling of Survey Respondents 37 3.3.3.Interview Design 37 3.3.4.Sampling of Interviewees 38 3.4.Data Analysis 38 3.5.Ethical Considerations 39 3.6.Limitations of the Study 39 3.7.Chapter Summary 40 Chapter 4: Data Collection and Findings 41 4.1.Introduction 41 4.2.Findings from
Every corporation comprises of two different stakeholders – the shareholders and the managers – that normally face off with each other. The shareholders are interested in maximizing their wealth and hence tend to take higher risks in anticipation of higher gains whereas the managers tend to take lower risks to ensure lower managerial overheads.
60 pages (15000 words)Dissertation
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