In the last few years, the International Business has been hit by a global recession. Economists were talking about the current situation of some countries, companies or economic issues more or less close to a situation of recession. These comments were relayed by lots of public media and it started to become a common topic for everyone, ordinary people as well. Before going into the thick of things and evaluate the impacts of this current global recession, a definition of what a global recession is, is required. Actually, lots of definitions and point of views exist concerning this status of slowdown in the economy but all categorize quite the same things. The main difference is between on one hand, the Gross Domestic Product (GDP) as a reference, which is an indicator of economic activity and on the other hand, the United States view based on the National Bureau of Economic Research (NBER). When we take the GDP measure, it is actually based on the works of Julius Shiskin, a former economist and statistics professor who played a big role in the analysis of the business-cycle and economic statistics.
[...] This recession will probably change some minds and modify views on searching for huge profits and probably lead to a more ethical practice by the International Business fraternity. Appendices Appendix 1 Adapted from http://www.lepoint.fr/actualites-economie/2008-10-28/l- industrie-automobile-touchee-de-plein-fouet-par-la-crise/916/0/286497 [accessed 18/10/09] Households' investment Annual evolution Appendix 2 Forecast Synthesis adapted from Conjuncture note Investment June 09 by INSEE. Available from http://www.insee.fr/fr/indicateurs/analys_conj/archives/juin2008_f3.pdf [accessed 19/10/09] References NBER (2003). Recessions. Available from http://www.nber.org/cycles/recessions.html [accessed 16/10/09] Abbergerand K. & Nierhaus W. (2008) How To Define A Recession? Available from https://invest.etrade.com.au/cms/assets/Recession_and_depression_Nov2008.pdf [accessed 16/10/09] Letailleur F. [...]
[...] Undertaking a global action must be more profitable to organize a new international financial system with some limits on cash flows, the ban of tax haven, stock option and hedge funds. A revision of the capitalist system and derivatives from the past will probably bring a more regulated system. The use of the speculator-payer principle might be a relevant solution. After all, the ones who get richer have to pay the backup plan and the reflation of the economy, because it is not workers who already fear the unemployment and the fall of their purchasing power to cope with it. [...]
[...] The global recession and its impact on France Historically, France wasn't clearly considered to fall into a recession mode by some economists. Nowadays, it is totally clear that France cannot avoid the effects of recession and figures are here to prove it. The GDP fell by during the last quarter of 2008, which was the biggest collapse since 1974, the year in which the last big recession occurred as a result of the oil crisis of 1973. However, the main difference between the United States and France is related to a part of their banking system. [...]
[...] In the first part of this document, we will analyze the global recession and its impact on the International Business, and later we will focus on the economy of France. Finally, we will try and find some possible answers to a global recession. The global recession and its impact on the International Business Causes A recession can be caused by a lot of factors and each one has specific sources. They are often linked with a crisis which happened in the business cycles. [...]
[...] Reality focuses (Companies, industries, sectors, etc.) We saw in the first subpart of the second part that in international trade, France is not too affected by the global recession, but it completely depends on the sectors which are affected. The French industry is totally in recession and the industrial production index had fallen of in 2008 according to an INSEE survey. The biggest impact concerns the major firms of the automobile sector Renault and PSA Peugeot Citroën. As sales were falling in this sector post recession, companies avoided dealing with huge amounts of stock and decided to close almost all of their factories during some weeks. [...]
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