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Create a 2 page essay paper that discusses You must use the same country as was assigned to you for the last seminar. Your task for the seminar is to provide a briefing paper (one-side of A4) outlinin
Create a 2 page essay paper that discusses You must use the same country as was assigned to you for the last seminar. Your task for the seminar is to provide a briefing paper (one-side of A4) outlining the impact of the global financial crisis on the business environment in that country and ident.
The financial crisis resulted in an increased rate of unemployment, which contributed to a fall in the USA domestic demand (Joseph, 2008). This herd behavior has had adverse effects on the pricing of the basic commodities for example, energy and food. It has also created consumer insecurity in the business market. therefore, leading to collapse of various businesses.
The decline in the capital investment market has profoundly affected the financial market. A report in 2009 indicated a drop of more than 23.2% of the total capital investment (David, 2010). This has greatly disconnected the financial market from the macroeconomics thus disrupting the normal performance of the real economy.
The budget imbalances on the on the revenues and income has widened during this financial crisis (Hillday, 2008). In an attempt to finance the deficit, the government has raised the taxes imposed on basic commodities. The raise in the taxes has led to increased cost of production for the majority of the firms forcing them to close down.
The financial crisis has posed a threat to the domestic political stability. This is due to the numerous public protests on the poor living conditions, increasing rates of unemployment and food prices inflation (Michael, 2010).
Many US citizens have expressed their dissatisfaction with the government’s attempts to salvage the economy. The political insecurity significantly threatens the business environment in the country. It has thus led to financial drain by a majority of investors.
These policies should address the inflation rates, fiscal crisis, capital market and come up with strategies to prevent reoccurrence of the crisis. The United National advises that the global financial crisis can be resolved by addressing the raising rate of unemployment and restoring the confidence of the investors (Pearlson, 2011).
In conclusion, although the Global Financial Crisis emerged in the USA it
