...Credit crunch and SME financing ----Take China as an example * * Shu Ruochen Noah 4063148 * Yuan Ziting Circle 40631 * Chou Xue Snow 40631 * * ABSTRACT ------------------------------------------------- SME are always important forces of social and economic development,and they play important roles in optimizing the economic structure, promoting innovation,easing social pressures and maintaining social stability.However, the world crisis was triggered by financial crisis in 2008 in USA, which has great impact on China’s economy, especially on SME.Since the credit crunch, SME are unable to obtain full production and operation funds needed timely,and Bank loans to enterprises are more cautious, so financing of SME will become more apparently difficult.Therefore, in order to solve the financing problems of SME, exploring development mode and long-term mechanisms which is adapt to economic structural has been an urgent strategic issues. * 1. Definition of credit crunch * A credit crunch is a sudden reduction in the general availability of loans (or credit ) or a sudden tightening of the conditions required to obtain a loan from the banks . * A credit crunch generally involves a reduction in the availability of credit independent of a rise in official interest rates . * 2. Background of Credit crunch. ------------------------------------------------- 2008 the financial crisis took place in USA...
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...Credit Crunch An economic condition in which investment capital is difficult to obtain. Banks and investors become wary of lending funds to corporations, which drives up the price of debt products for borrowers. Credit crunches are usually considered to be an extension of recessions. A credit crunch makes it nearly impossible for companies to borrow because lenders are scared of bankruptcies or defaults, which results in higher rates. The consequence is a prolonged recession (or slower recovery), which occurs as a result of the shrinking credit supply The global credit crunch, which has dominated financial news headlines over recent months, continues to wreak havoc across the UK. Since it made its way across the Atlantic last summer the credit crunch has taken its toll in all financial sectors, and has made things difficult for both lenders and consumers. Many lenders have been hit hard, because the crunch has resulted in increased difficulties in getting finance on the wholesale money markets and increased costs relating to inter-bank lending. This means that lenders are finding it more difficult and more expensive to raise the finance that they need to fund their lending. Over recent months an increasing number of consumers have found that trying to get any form of credit has become more difficult and expensive, and this is because of the action taken by lenders to try and protect themselves as much as possible from the effects of the crunch. Lenders have raised interest...
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...In the most recent recession, credit crunch (2007-08) has played a complex role than earlier crunches because financial innovation has allowed new ways of packaging and reselling assets. It was triggered with the growth of the subprime mortgage market in the United States which was caused due to nonstandard mortgages to individuals with irregular income or unknown credit profiles. Based on subprime and other nonstandard mortgages, new assets were developed which were then sold to investors in the form of repackaged debt securities of increasing sophistication. These new assets received a very high rating and were considered safe compared with more conventional asset classes. These newly developed assets provided good returns compared to other asset classes. However, they were not as safe as the ratings suggested, because their value was closely tied to movement in house prices. While house prices were rising, these assets offered relatively high returns compared with other assets with similar risk ratings; but, when house prices began to fall, foreclosures on mortgages increased. To make matters worse investors had concentrated risks by leveraging their holdings of mortgages in securitized assets, so their losses were multiplied. Investors realized that they had not fully understood the scale of the likely losses on these assets, which sent shock waves through financial markets, and financial institutions struggled to determine the degree of their exposure to potential losses...
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...ERIKA VARGAb Dobó István Grammar School Széchenyi út 19, Eger 3300, Hungary cetebe@hotmail.com b Károly Róbert College Mátrai út 36, Gyöngyös 3200, Hungary evarga@karolyrobert.hu a T he cyclical movement of the economy is a natural process but, fortunately, a global economic crisis is a rare phenomenon. The credit crunch starting in September 2008 has grown into a global one primarily affecting car manufacturing and then it has its percussions in the whole economy-gradually reaching all the players. The crisis management in human resources implies layoffs, redundancies or shorter working hours and weeks. In many cases there were not wellthought corporate strategies for crisis management as managers as well as employees had to face a problem they had never experienced before. One of the corporate operative steps is to examine and realise how deeply the organisation itself is affected in the crisis. Our objective is to present what theoretical and practical solutions were or are invented besides the ones already mentioned. Keywords: crisis management, human resources management, atypical employment 1. About the crisis in general About a year ago the credit crunch became widespread primarily hitting the financial institutions worldwide and had its impacts felt in the motor industry reaching all players of the economic life. There were no companies that could escape its impact and most organisations lived through the recession negatively. The fluctuation of the economy is...
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.............. 1.0 Impacts Of Credit Crunch On U.S........................................ 1.1 Impact on U.S Economy...................................................... 1.2 Impact on Interest Rates...................................................... 1.3 Impact on Banking Sector.................................................... 1.4 Impact on Mortgages and Credit Lending Agencies............ 1.5 Impact on GDP..................................................................... 1.6 Impact on Inflation................................................................ 1.7 Impact on Employment in U.S.............................................. 2.0 Implemented Strategies To Overcome The Impacts............ 2.1 Fiscal Policy............................................................................ 2.2 Seek Direct Foreign Investment............................................. 2.3 Establish Proper Monitoring System...................................... 2.4 Strengthening the Country’s Internal Infrastructure............... Conclusion...................................................................................... References...................................................................................... INTRODUCTION “An immediate or sharp condition of unavailability of liquid money from the banks and money lending agencies in an economy is known as credit crunch”. The 2007-2009 global financial...
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...Explain the term “credit crunch” and how it has developed. Discuss the implications for UK Small and Medium Enterprises (SMEs). This essay will look at explaining the term credit crunch, as to what it means and how it has been applied to within the global economy. More so the essay will cover how the credit crunch of 2007 has developed over time, with the key aspect of the US housing market developing to then impact other countries, such as the UK economy. The essay will discuss the implications on UK small and medium enterprises. One of the key issues which will be discussed as to the implication of the credit crunch, is the availability of finance to SMEs. More so other non direct aspects which have which act as implications will too be discussed. The credit crunch has been defined as a shortage of money or loans as well as other types of credit given by banks. In short the BBC defined the credit crunch as “a severe shortage of money or credit” BBC: Timeline: Credit crunch to downturn (2009) It describes the economic condition of an economy. In most situations, when an economy has been in a credit crunch, the economic condition of a country is unstable or also known as a financial crisis. As the Guardian states, “the current global financial crisis is commonly known as the credit crunch.” Kollewe (2008) Credit crunch’s can occur mostly when an economy is in a recession, a time when the economy is declining during which the there is fall in gross domestic product (GDP). ...
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...It is interesting to read how NPD gained its’ success through the waste or trash of the United States and Europe. I think this is right in line with how Mrs. Cheung thinks; she wants to be ahead of all her competitors and gain every competitive advantage possible. By utilizing the paper waste of higher quality products in the US and Europe, she was able to bring this quality back to China where it was nonexistent. As you can see in the reading as well, Mrs. Cheung believes in rapid expansion to maximize revenue opportunity and that long term profits will come from taking on a lot of debt. But even as she said when speaking about the economic crisis: “Now the waves are so big, even some rocks are being washed away.” The economic crisis of 2008 did not only affect the small companies, but also the large and profitable ones like Nine Paper Dragons. I would summarize the company’s financial status as struggling at the point this article was written. The company’s unsecured notes were rated as BBB- in April, 2008 and downgraded even lower to BB+ in October of 2008. On top of that, even though the company had a successful IPO in March of 2006, the debt accumulated after this IPO really hurt the company when the financial crisis hit in 2008. This demonstrates Mrs. Cheung’s vision to take chances and be the market trend setter for her industry. It appeared though that she spread herself too thin through expansion and also through the large amount of debt she...
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...Ieva Massehian ECON 303 N. Pulchritudoff March 7, 2015 Robert Reich’s Aftershock: The Next Economy and America’s Future Robert Reich, former secretary of labor in B. Clinton administration and current professor of Public policy in University of California, Berkley starts his 12th book “Aftershock: The next Economy and America’s future” from presenting well known cause of 2008 economic crisis: ““For too long,” Geithner says, referring to the period leading up to the financial bust, “Americans were buying too much and saving too little.” However, soon it becomes clear that Reich has different point of view what really happened in the wake of the one of the worst economic crisis in world’s history. Author starts his argument by looking back to America’s history and analyzing Great Depression and Great Recession. He is inspired by chairman of Federal Reserve board M. Eccles who was convinced that purchasing power of middle class was reduced by uneven distribution of income. “He draws heavily on his thinking, that the blame lies on a similar but worse economic trauma—the Great Depression—on the vast accumulation of income in the hands of the wealthy in the ’20s, which siphoned purchasing power away from other Americans.” This situation compromised the growth of economy and the economy collapsed. Reich agrees that the stagnation of middle-class buying power has been a drag on growth. “If earnings are inadequate,” he asserts, “an economy produces more goods and services...
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...Nine Paper Dragons Case Questions 1) How does Mrs. Cheung think? What does she believe in when it comes to building her business? It is interesting to read how NPD gained its’ success through the waste or trash of the United States and Europe. I think this is right in line with how Mrs. Cheung thinks; she wants to be ahead of all her competitors and gain every competitive advantage possible. By utilizing the paper waste of higher quality products in the US and Europe, she was able to bring this quality back to China where it was nonexistent. As you can see in the reading as well, Mrs. Cheung believes in rapid expansion to maximize revenue opportunity and that long term profits will come from taking on a lot of debt. But even as she said when speaking about the economic crisis: “Now the waves are so big, even some rocks are being washed away.” The economic crisis of 2008 did not only affect the small companies, but also the large and profitable ones like Nine Paper Dragons. 2) How would you summarize the company’s financial status? How does it reflect the business development goals and strategies employed by Mrs. Cheung? I would summarize the company’s financial status as struggling at the point this article was written. The company’s unsecured notes were rated as BBB- in April, 2008 and downgraded even lower to BB+ in October of 2008. On top of that, even though the company had a successful IPO in March of 2006, the debt accumulated after this IPO really hurt...
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...Wall Street Financial Crisis Student’s Name Institution Date Paper Draft Introduction Background of the crisis. The effects and impact of the financial crisis. Results of preliminary reports. Sociological perspective of financial crisis The aspect of sociology in financial crises Senate’s investigative report The key players and their roles Why the workers remained unknowing The sociological explanation of the unpredictability of the crisis Conclusion Introduction The Financial Crisis of 2008 was described by economists, analysts and even sociologist as the worst and most devastating economic crisis since the 1930s Great Depression. It threatened a total collapse of huge financial institutions, banks bailout by governments, and major downturns in security's exchange around the world characterized this dark economic year. The housing sector in many areas in the world t also suffered, with the result being forced and unnoticed evictions (Coxe, 2005). Many people lost their jobs and there was a prolonged unemployment leading to family crisis and debts. Key businesses including banks failed and there was a huge decline in the consumer profits. The small unsecured financial institutions suffered the worst ever insolvency resulting from bank runs that characterized this period. The declines in consumer wealth were estimated in trillions of U.S. dollars. All these activities took a very short active phase, manifested as a liquidity crisis, and dated from August 9...
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...TABLE OF CONTENTS Introduction 2 Global Impacts of the Credit Crunch 3 IBM – International Business Machines 4 Table 1: IBM’s Financial Performance History 2000-2009. Source: IBM Annual Report 2009 5 Table 2: Earnings per share 2006 to 2010 projection. Source: IBM Annual Report 2009. 6 How the Credit Crunch Impacted IBM’s Operations 7 Global Integration 7 Changing Business Scope 7 Revenue 8 Human Resource Management Impacts 8 Price Instability 8 Exchange Rate Fluctuation 8 Interest Rate Fluctuations 8 Debt 9 Notable Impacts 9 IBM’s Operational Strategy 10 Strategic Response 10 HRM Strategy 10 Value Chain Strategy – Developing a Business of Values 11 Table 3: IBM Value Chain. Source – ibm.com/services 12 International Strategy 13 Institutional Strategy 13 Recommendations for Future Growth 14 Delivering Value to Customers 14 Human Resource Capital 15 Research and Development 16 References 17 Bibliography 18 Introduction The ‘Credit Crunch’ emerged in 2007 with the first effects being felt by the U.S. Mortgage industry. The term ‘credit crunch’ came was used to describe the collapse of the subprime mortgage industry that resulted in a freeze in lending by financial institutions. With non-payment of loans, huge debt and no capital gains, financial institutions began to go under. Investment banks, financial services and real estate market felt immediate impacts. Trillions of U.S. dollars were lost, huge government bailouts...
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...rest between | | | | XX | XX | Superset: | XX | XX | XX | XX | XX | Skull Crushers: 1 Warm-up Set: 8-12 reps | | XX | XX | XX | XX | 3 sets of 12-16 reps | | | | XX | XX | Close-Grip Bench Press: 1 Warm-up Set: 8-12 reps | | XX | XX | XX | XX | 3 sets of 12-16 reps, 60 seconds rest between | | | | XX | XX | Triceps Pushdown (Rope): 3 sets of 12-16 reps, 30 seconds rest | | | | XX | XX | Overhead Dumbbell Triceps Extension: Quadruple drop set to failure, No rest | | XX | XX | XX | XX | Abs: 4 rounds, no rest between sets | XX | XX | XX | XX | XX | Hanging knee raise: Failure | | | | | XX | Swiss ball crunch: Failure | | | | | XX | Decline Reverse Crunch: Failure | | | | | XX | Broomstick twist or bicycle crunch: 25 reps | | | | | | Back/Biceps/Calves EXERCISE | Set #1 | Set #2 | Set #3 | Set #4 | Set #5 | Cardio Warm-Up: 5 minutes | | XX | XX | XX | XX | Wide-Grip Pull-up: 4 sets of 10 reps, 60 seconds rest | | | | | XX | Bent T-Bar Row: 3 sets of 10-15 reps, 60 seconds rest, Drop set on final set | | | | XX | XX | Close-Grip Pull-down: 3 sets of 10-12 reps, 60 seconds rest, Drop set on final...
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...Fast Track to a Flat Belly Thanks to 5 decades of research and nearly 90 studies, scientists have zeroed in on the best moves to flatten your belly. The secret is to really fatigue your abs -- not an easy task, because they’re used to working all day to keep you standing tall. But we created a routine that, when combined with regular cardio, does it in just four moves. How do we know for sure? We had nearly a dozen women test the program as part of our Prevention Fitness Lab. All our testers lost serious inches from their stomachs in weeks -- and you can too! Start now for an all-around leaner belly. 10Minute Workout! Lose up to 4 pounds and 3 inches in 7 days with this incredibly effective, easy-to-follow routine PROGRAM AT A GLANCE 3 DAYS A WEEK: Do the Slim Belly Workout moves on 3 nonconsecutive days to tone your midsection. 5 DAYS A WEEK: Do 30 to 40 minutes of cardio, such as brisk walking, swimming, jogging, or bike riding, to burn off belly fat. You should be breathing hard but still able to talk in short sentences. EVERY DAY: Watch portions and fill up on whole grains, vegetables, fruits, lean pro- tein, and healthy fats to maximize results. Aim for 1,600 to 1,800 calories spread evenly throughout the day. To keep tabs on your eating, go to prevention. com/healthtracker. THE EXPERT: Tony Caterisano, PhD, exercise scientist and professor in the department of health sciences at Furman University, designed this workout. Written by Marianne McGinnis...
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...Table of contents 1. Introduction ................................................................................................................................... 1 1.1. 1.2. 1.3. Structure of the report.............................................................................................................. 1 Mc Donald’s’ Business Model ................................................................................................ 1 Credit crunch ........................................................................................................................... 1 2. Theoretical framework ................................................................................................................. 2 2.1. The credit crunch 2008 ............................................................................................................ 2 The deregulation of the financial markets ....................................................................... 2 The U.S. housing market ................................................................................................. 2 Consequences of the subprime mortgage crisis............................................................... 3 Impact on businesses and consumers in the U.S. ............................................................ 4 2.1.1. 2.1.2. 2.1.3. 2.1.4. 2.2. 2.3. 2.4. 3. SWOT analysis ...................................................................................................
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...Introduction: There are a couple different themes that become very important when analyzing the Nestle Crunch Bar case. During the case, many research channels were used to find various themes and feelings residing within the consumer, conscious and subconscious. Between pages twelve and fourteen, multiple feelings/themes are presented. A couple of these have stuck out in comparison to the others, emotional comfort and enjoyment. These two themes seem to be present in the mind of the consumer through all of the consumer testing studies and also within the consumer throughout the entire purchasing experience. A) From the Nestle Crunch Consensus Map, we can see that enjoyment is linked to many other feelings that evoked in the consumer during the purchasing experience. Some of the predecessors to enjoyment include aspects such as taste, product attributes, indulgence and anticipation. These are all things that occur before enjoyment is experience from the consumer. From the study, it can be seen that enjoyment is an experience that is almost purely defined by primary deciding factors such as the ones mentioned above; making enjoyment a secondary feeling during the experience of consuming a nestle Crunch bar. The qualities of the product such as taste, feel and look are directly linked to enjoyment one gets out of the product. One of the words related to enjoyment that tends to stick out in the study, is indulgence. This is a word that is often personified with chocolate in general...
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