StudentShare solutions
Triangle menu

Problems Stemming from the Economic Crisis and Potential Recovery - Research Paper Example

Not dowloaded yet

Extract of sample
Problems Stemming from the Economic Crisis and Potential Recovery

The policies adopted by the governments are aimed at enhancing sustainable economic growth by ensuring that the structural and macroeconomic causes of the recession are addressed. Through adoption of effective policies that ensures the stability of the supply side of the economy, macroeconomic benefits would ultimately emerge. First, they ensure fiscal sustainability since they add credibility to the borrowing demands by the government. Secondly, they enhance redeployment of resources due to the fact that they use the opportunities that emerged after the structural changes that emerged after the recession. One of the implications of the recession was the reduced level of research and development (R&D). This was due to the contraction of the retained earnings which is the major source of financing R&D. In addition, many financial institutions have become more risk averse thus making it hard for companies to get external funds to support their research and development initiatives (OECD 12). ...
In order to encourage development of new industries and to promote the spirit of entrepreneurship that is important in addressing the negativities of recession, most governments have emulated two essential strategies. First, governments have encouraged the growth of firms by reducing the administrative costs incurred by companies during their establishment. This also involves establishment of more favorable conditions for restructuring of poor performing companies. Secondly, government authorities have adopted easing of liquidity problems faced by small companies. In order to solve the liquidity problems, governments emulated strategies such as reduction of tax, factoring of tax receivables as well as export credit (OECD 8). Human investment Increasing investment in people is another strategy that is adopted by government authorities. This entails improving training and education so as to prepare individuals for the emerging job opportunities in various industries. Some of the policies emulated by government authorities include, improving educational infrastructure system, integrating ICT and provision of school programs that encourage innovation (OECD 21). In addition, the economic recession is used by government as an opportunity to undertake reforms in higher education. Implication of economic recession on performance of General Motors Company General Motors (GM) is a US based automobile company that was largely affected by the economic recession. For example in 2007, the company lost $50 billion, while in 2008 the stock value of the company reduced by 76% (Emily and Phil 34). In its effort to enhance the performance of the ...Show more

Summary

11th November 2011 Problems stemming from the economic crisis and potential recovery The recent economic recession greatly affected the operations of both local and international companies. As a result, companies have emulated various strategies in their effort to reduce the cost of operation in order to increase their profits and reduce the cash outflow…
Author : queenierolfson
Problems Stemming from the Economic Crisis and Potential Recovery essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Problems Stemming from the Economic Crisis and Potential Recovery"
with a personal 20% discount.
Grab the best paper

Related Essays

Greeces Economic Crisis
The paper is an attempt to research about the effect of the economic crisis of Greece in the world economy. The economy of Greece, which was a fastest growing one from the year 2000 to 2007, faced severe downturn from the late of 2009. The economy was flooded by the foreign funds in those years. The burden of Greece surpasses €340 billion and this is expected to increase which is more than the economy of Greece.
5 pages (1250 words) Research Paper
Toyota Economic and Recall Crisis
Toyota Economic and Recall Crisis Name Institutional Affiliation Abstract Toyota Motor Corporation is one of the world`s largest and most preferred automobile manufacturers. It also is a leading advocate eco-friendly and technological cars. The company was established in 1937 by Kiichiro Toyoda.
10 pages (2500 words) Research Paper
Discuss the economic relationship between oil prices, food prices and the nascent global economic recovery
But definition alone cannot be proof enough of the virility that it has cast on common man’s lives on a global basis. What had started with mere disputes in demand- supply equilibrium in the real estate market has turned out to be the biggest evil, spreading its grasps on almost everything that it has touched.
15 pages (3750 words) Research Paper
Journalism - The Economic Crisis
The crisis not only affected people in the United States, but was felt by people all over the world. The interview I conducted revealed people’s feelings about the crisis and it showed how people reacted to the crisis by cutting down their budgets (Jickling).
5 pages (1250 words) Research Paper
Analysis of Argentina Economic Recovery
Economists described the 1998-2002 Argentina’s economic meltdown as one of the worst economic period that Argentina has ever faced over the last one hundred years. Fiscal policies usually influence financial stability of a country. Financial collapse witnessed in Argentina was a set back to the countries economic growth.
4 pages (1000 words) Research Paper
The Cold War and Post-War Economic Recovery
Due to the Cold War, international politics changed which resulted in a change in relations among the countries. Foreign policies were changed by many countries during the Cold War era and all these factors had a great influence on the overall global climate.
4 pages (1000 words) Research Paper
Economic Crisis
Primarily the focus is stressed on the proximate causes that ignited and spurred up the economic downturn. In the subsequent step, endeavors made by the US government in the stabilizing mechanism of the economy is explained with particular emphasis on the role of President, Congress, Secretary of the State, and Treasury Secretary in order to abolish the adverse consequences on the economy.
8 pages (2000 words) Research Paper
Economic Recovery of Greece
This was connected to the greatest structural discrepancy in the early mid-2000. In the late 2000s the world was hit seriously by global crisis in which Greece economy was largely affected. The main industries-tourism and shipping were particularly vulnerable in the business cycle.
6 pages (1500 words) Research Paper
Mental and Physical Problems Stemming From Childhood Obesity
are obese (p. 48). Childhood obesity is an epidemic not only in America, but also in other parts of the world as well. Poor nutrition, unhealthy eating habits, and
7 pages (1750 words) Research Paper
Selection Tests: Advantages and Potential Problems
There are various tests available to assist employers in making decisions (R. Wayne Mondy, 2012). A test is considered valid depending on whether the test was based on an accurate, baseline test score. Some tests like
5 pages (1250 words) Research Paper
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation