Running Header: BUSINESS IN TIMES OF GLOBAL RECESSION

Business in Times of Global Recession

Abstract

This paper aims to discuss the recent global recession and its causes. It will further discuss the impact of global recession and how the global recession has altered the pattern of doing business in present world. This study in this connection will analyze the effect of global recession on businesses and how the business patterns have changed because of the recession. It is a common belief that global recession always compels businesses to innovate and explore new ways of doing business. Global recession strike the businesses financially and leave an impact over companies operating in the regions that are considered center for emergence of such crisis. The present global recession is just the beginning and analysis of the foreign policy of major players of the global economy, it can easily be claimed that the recession is not going to be resolved very soon, and no indications have been observed that major players of the global economies are making endeavors for the resolution of this problem. Businesses are facing problems to operate in this period of global recession.

Table of Contents

Chapter 1: Introduction4

Background4

Introduction4

Problem Statement8

Purpose of the Paper8

Hypothesis8

Chapter 3: Methodology9

Research Methodology14

Chapter- 4: Findings15

Research Findings15

Causes of Global Recession9

Impact of Global Recession12

Impact of Global Recession on Businesses15

Impact of Financial Crisis on Small Business17

Chapter 5: Summary, Conclusion and Recommendations19

Summary19

Conclusion20

Recommendations21

References22

Appendix24

Business in Times of Global Recession

Chapter 1: Introduction

Background

If we talk about the Global recession or the financial crisis, it began in the year 2007 in United States. Global recession took it full-scale or pace in the year 2008-09, affected each and every economy. Besides these, the economies which are not related financial crisis are also badly affected. Even the most developed economies and nation slowed down due to the global recession. Businesses collapsed, interest rates have been cut throughout the world, which gives the coordinate response. Even the shipping rates and economic activity indicators were also declined rapidly.

The global economy is struggling with the financial and economic crisis worse than it has seen since the Great Depression, which continues to undermine the ability of many countries to cope with problems such as poverty, hunger and disease. Following the escalation of the crisis, its impact on developing countries moved quickly proportions increasingly alarming, especially in terms of rising unemployment and widening of the external financing gap. The sharp decline in international trade flows, the collapse of commodity prices, the decline in international tourism and the reduction of remittances are all factors that have contributed to a sharp deterioration of current account balances of many countries development.

Introduction

The global financial crisis of 2007 was comparatively recent in origin as compared to other financial crises, and is possibly persistent until now. Is the credit crisis a good natural experiment? As the answer to this question is important for understanding t he empirical methods in this paper, I will discuss the pertinent features of the credit crisis in depth. The credit crisis refers to the panic ill financial markets ill August ...