...A PRESENTATION ON “GLOBAL FINANCIAL CRISIS” SUBMITTED BY: M.ASWATHI ASHOK AND ANAGHA P.S CONTENTS * GLOBAL FINANCIAL CRISIS * DIFFERENCE BETWEEN US/ EUROPE AND INDIA * RBI’S POLICY, RESPONSE AND IMPACT * LESSONS FROM THE CRISIS * MEDIUM- TERM ISSUES AND CHALLENGES GLOBAL FINANCIAL CRISIS * Proximate causes & Fundamental causes * Current account balance * US monetary policy Policy 1: * Volatility in monetary policy in advanced economies. * Large volatility in capital flows to EMEs. Policy 2 : * US Monetary policy too loose during 2002-04; aggregate demand exceeded output; large current a/c deficit; mirrored in large surpluses in China and elsewhere. Policy 3 : * Large Fed cuts in 2007: strong boost to oil, other commodity and asset prices * Capital Flows to Emerging Market Economies * Worsening Global Economic Outlook DIFFERENCES BETWEEN FINANCIAL CRISIS IN US/EUROPE AND INDIA * What has not happened in India : * No bank losses threatening capital * No bank credit crunch * No mistrust between banks * Our Problems : * Reduction in capital flows * Stock markets * Monetary and liquidity impact * Fiscal stress * Oil, Fertiliser, Food subsidies * Pay Commission, Debt waiver, NRE * GFD/GDP ratio: 5.5-6.0% * India’s Approach to Managing Financial Stability: ...
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...Tunisia, in a country where most of its population is college educated. They are unlike other Arab nations in neighboring areas; the majorities of all Tunisians are educated and have been education abroad. This was a wide spread practice across the region with regard to the inhabitants of these countries, the cruel and unjust treatment from these authoritarian leaders, corrupted law enforcement, and suppression of their religious leaders by their very own law enforcement agents. Being able to witness this first hand, observing the way of life within the region and oppressive living conditions they are subjected too, while their monarchs, military and state leaders live a very lavish life. While reviewing why the Arab spring happened, the impact it has had in the Middle East and on its economic system, we will analyze the outcome and the overall consequence it will have on the region. We will also touch on the domino effect that this small nation has set into motion in this corner of the world that was so delicate, the whirlwind which it set off and could not retract once started that is still happening currently, which is depicted in appendix A. Keywords: Poverty, Rising food prices, Inflation, human rights, unemployment Arab Spring Review of Situation As we enter the fourth year of...
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...China’s New Challenge: Declining Happiness in a Growing Economy By Shiyu Song Dr. Nikolaev Econ 385R 03J 21st November 2013 Abstract Since 1978, China has seen a sustainable rapid growth in its economy. China’s real GDP has already surpassed 7 trillion US dollars in 2011 in current dollars, and it has replaced Japan as the world’s second largest economy. People in China also have significant improvements in their standards of living and material life. However, my findings contradict the notion that an increase in income and standard of living will gain people happiness. My major findings show that income inequality and other major social problems, such as lack of religious belief and faith, political problems, and family burden have contributed to the decline of happiness among Chinese people. Other negative feelings emerging with the rapid economic growth, such as greed, interpersonal distrust and less compassion show adverse effects on Chinese happiness. I conclude the research by suggesting possible future researches for further studies. 1. Introduction After the Cultural Revolution ended in 1978, China launched a comprehensive reformation in its state controlled economy under the new leadership, Mr. Deng Xiaoping. Since then, China has gradually opened its door to the world and begun its transition into a market economy. (Chai, 1997) Over the past thirty years, China had the most enduring and rapid economic growth in the human history. According to the Federal...
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...Fundamentals of Global Business Japan’s Economic Malaise and Future for Growth Japan was considered an economic powerhouse during the 1960s through the 1980s. During it’s peak the Japanese economy suddenly became stagnated. There are several reasons for this downfall, including falling housing prices, unrest with the Chinese government leading to anti-Japan sentiment, a drop in birth rate leading to an aging population and natural disasters that have hindered Japan’s economic recovery. Despite this, Japan still retains many advantages for companies wanting to do business with them. In addition there are several potential solutions that could aid the Japanese economy to return to the level of health it had at its peak. Some of the reasons for this downfall during the late 80’s is the Japanese market crashed THIS WAS THE RESULT OF BAD ECONOMIC DECISIONS. causing a lot of housing prices to fall in the wake of the market. There has been some unrest with the China government and their communist ideals, which has allowed a lot of the citizens to turn anti-Japanese. THIS IS VERY RECENT ISSUE. JAPAN'S PROBLEM IS OVER 30 YEARS OLD. This anti-Japanese movement has caused Japanese companies billions of dollars from actions such as vandalism of Japanese vehicles or looters causing vandalism of some of the grocery stores. Nature has also been a big factor by inhibiting the economy to rebound such as earthquakes, flooding, and tsunamis, which has caused extreme difficulty in the...
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...Abstract In an era of globalization, more and more companies tend to choose global virtual team with members of different cultural backgrounds because leaders gradually promote their company to the world. Global projects with using virtual teams are primarily linked through computer and telecommunications technologies across national boundaries. Globalization of the construction industry has brought unique challenges such as coordination among project participants from different countries, and individual’s preferences in decision make and communication. As economic borders between countries come down, cultural barriers will most likely go up and pose new challenges and opportunities for business. Solving the cultural issues has been found to be of crucial importance for the success of virtual teams. This research attempts to characterize cultural differences along the dimension of cultural values and cultural practices Keywords: Virtual global project; Cultural diversity; Project management. Introduction Traditionally, a team-based project requires all team members physically present in a specific location for a period of time. But virtual global project requires a virtual team that members can engage in and deliver projects with limited or no direct physical interaction with other members. It allows multinational enterprises to draw on the widest talent pool available among their global employee base. Team members typically don't need to meet face-to-face, they can...
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...Describe the Culture at Devils Den? The Culture at Devils Den is that of a laissez-faire attitude where things are done in an uncontrolled manner. There are rules and regulations but these rules are not applied by managers. Employees demonstrate and practice unethical behaviors and go unpunished. Employees who are students steal food and give to their friends. Some even take home food which is a practice that is against the rules. The managers at the Den either do not care or are afraid to enforce rules and regulations. Identify and discuss the drivers of unethical behavior at the Devil’s Den. The drivers of unethical behavior at the Devil’s Den are the lack of proper control by the management of College Food Services (CFS) which is a contract company that runs the restaurant business at the school. Because of laxity in management, employees get away with unethical behaviors and this only go to embolden them to keep on doing things they know is not allowed such as accessing the unlocked storage door to retrieve food for their own personal gains and self-interests. The managers do not want to take action because they feel this would deter the student employees from working for CFS. The contract company only pays a little over the minimum wage level. The pressure to entice employees to CFS makes management to look the other way when employees practice unethical behaviors. This is evidenced when an employee was caught pocketing money from the register and...
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...What are the causes of the global financial crisis? Name: Course: Tutor: Date: What are the causes of the global financial crisis? Introduction Achieving stability has always been the number one priority in any county or organization. Financial stability is probably one of the most sort after achievement everywhere in the world. When a country or company fails to attaining financial stability then things are deemed to go wrong. The global financial crisis brought about the worst kind of financial instability in the global economy. It started in the United States and spread all over the world like wild fire. Even the top performing economies in Asia like China were not left out. This economic turbulence brought about both economic and social hardships (Helleiner,1994) . This was partly blamed on the already established Capitalist ideologies that prevailed especially in the United States. This crisis exposed most economies to financial difficulties as it proved the dependence of most nations on dollar denominated financial transactions. The only way to salvage these economies was through fiscal and monetary interventions by the Governments of the day. Bail-out packages were presented to major economy drivers and industries to help ease the financial crisis that had affected their operation. The collapsing of large financial institutions like the Lehman Brothers bank brought about a lot of chaos in the industry. Large bailout packages were used to help revive...
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...aftermath of the recent economic crisis, the world is looking for fresh ideas and new perspectives. Business reality has transformed from “West leads East” to “West meets East.” A thriving Chinese business culture represents not only a source of economic partnership but a potential fount of managerial wisdom that can help renew Western economies. Unfortunately, the cultural distance between East and West makes Chinese examples too different, and at times inappropriate, for Western firms to emulate. Outstanding entrepreneurs such as Stan Shih, who have taken the best managerial practices from the East and the West while avoiding the shortcomings, represent ideal “intermediate” role models. By employing such an “ambicultural” approach to management, Shih provides a model for both bridging cultures and instructing organizations in the East and West. In this essay, we discuss these linkages and some of the useful lessons for managers from both cultures. Indeed, “Chinese” as a way of thinking, with its emphasis on balance and self-other integration, offers the promise to bridge global divides and facilitate the formation of global-minded executives. T he global economic crisis has destroyed vast amounts of wealth— both public and private— and eliminated tens of millions of jobs. An estimated $34.4 trillion worldwide was erased between the autumn of 2008 and March 2009 (Liu, 2010); American households alone have lost some $11 trillion in wealth, according to a Federal Reserve report (Kalita...
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...PROJECT ON AMERICA AND THE GLOBAL ECONOMY SERIES ON GLOBALIZATION “ Moving to the middle ground on globalization is difficult and will take time... But in order to achieve real progress, we must “break the ice” by taking the concerns of the critics seriously and responding with constructive action rather than just more talk.” In WEIGHING THE PROS AND CONS OF GLOBALIZATION this presentation, Weidenbaum makes five key recommendations: • Make the World Trade Organization More Transparent • Ease the transition of people hurt by globalization • Strengthen the International Labor Organization • Use the Internet to give consumers an educated voice on overseas production • Welcome voluntary business standards Murray Weidenbaum holds the Mallinckrodt Distinguished University Professorship at Washington University in St. Louis, where he is also honorary chairman of the Weidenbaum Center on the Economy, Government, and Public Policy. Dr. Weidenbaum served as Assistant Secretary of Treasury for Economic Policy in the Nixon Administration and as President Reagan’s first Chair of the Council of Economic Advisers. 1300 Pennsylvania Avenue, NW Washington, D.C. 20004-3027 www.wilsoncenter.org MURRAY WEIDENBAUM WEIGHING THE PROS AND CONS OF GLOBALIZATION Remarks by MURRAY WEIDENBAUM A Presentation to the Woodrow Wilson International Center for Scholars Washington, D.C. March 5, 2003 WOODROW WILSON INTERNATIONAL CENTER...
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...Chapter 1: About (inter)national critical infrastructures 1.1 Defining critical infrastructures A country’s critical infrastructures are the specific facilities, services and informational systems that are vital to its national security, economy, public health, and for the security and well functioning of the Government itself. The failure or destruction of such critical infrastructures could heavily weaken or threaten the latter. As such, both the management and protection of critical infrastructures go hand in hand. Each country is responsible for identifying the national infrastructures that are critical for its security and stability. However, there are certain infrastructures deemed critical by most states. Which are Romania’s critical...
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...How Bad Was It? © 2011 The Futures Company. All rights reserved. 2 Storm Damage The eight days of near-doom in September 2008 struck like a lightning bolt, cleaving the market in two along an already-weakening fissure largely hidden from view until laid bare by a direct hit from the financial crisis. Across the developed world, most particularly the US, the UK and the Eurozone, decades of stagnant real wages, accumulating debt and flagging innovation had left the middle class acutely vulnerable to the financial storm that swept the globe. In the wake of the Great Recession, a sizable stratum of spent consumers has materialized where an aspirational middle used to be. Overlooked—or just ignored— during the boom preceding the global recession was clear evidence that the position of the middle class in developed markets was increasingly fragile. The New York Times reported in early 2008 that “[t]he European dream is under assault, as the wave of inflation sweeping the globe mixes with this continent’s long-stagnant wages.” A recent report from the UK-based Resolution Foundation Commission on Living Standards documents the failure of wages in developed markets since the mid-1970s to keep pace with economic growth, as shown in Figure 1. Figure 1: Wages as a Percentage of National Income for OECD Countries 60% 55% 50% 1970-74 1975-79 1980-84 1985-89 1990-94 1995-99 2000-04 2005-08 Source: James Plunkett, Growth Without Gain? The Faltering Living Standards...
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...Instrument of Rational Decision-Taking Narelle Gomes, Christian Piechorowski 09.01.2014 Table of contents: 1.1 Information technology’s impact in the development of the stock exchange 1.2 Algorithmic trading 1.3 High frequency trading 1.4 High frequency; trading beneficial or harmful for the economy? 1.5 Final Remarks 2.1 The Influential Role of Mass Media - The Pervasiveness of the information disseminated on the people 2.2 Financial Crisis- A media spectacle? 2.3 The mishaps of European Media during the current Euro crisis 2.3.1 The alternative view of the media; Citizens mistrust towards the media 2.3.2 The wavering power of mainstream amidst its pervasiveness 3. Conclusion Introduction Problem Description: The world financial crisis started in the US with the burst of the housing bubble in 2007. However, it was not just limited to the US border, but it rapidly spread all over the world. Consequently, many banks went bankrupt and some countries were even pushed into a financial downturn. Target of Study: This essay will not provide a general outlook on the financial crisis but instead examines the impact of the Real time media and IT on this economic crisis of historic scale. How important is IT in today’s economics? Did mass media catalyze the financial crisis...
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...examines the nature, evolution, impacts and future of the modern business corporation and the increasing role it plays in society and our everyday lives. The birth of the corporation: How the corporation came to be. Originally, corporations were set up to serve the public good. Corporation lawyers gained rights through the US Supreme Court using the 14th Amendment (set up to protect slaves) that gives them the rights of a person. In the last century, the corporation is given more and more rights while people are increasingly stripped of theirs. Origins of Corporations Although definitions and descriptions of corporations have changed dramatically through the last few hundred years, the first corporation actually began long ago – as early as the sixteenth century. It was a benchmark in the history of money and business, transforming an economy from what was essentially a debt economy (when it came to merchant work) to a state-sponsored enterprise. This type of business was brilliant and revolutionary for the early business world, allowing businesses to take risks and expand in ways they had been unable to do before. The concept spread and grew, and by the seventeenth century, the corporation was well on its way to being an acclaimed and established center for regular commerce. When corporate business came to the newly born United States of America, shortly after their break from England, the corporation was looked on with suspicion and mistrust. Although economically it seemed...
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...From approximately 1526 to 1867 over twelve million kidnapped Africans were forced into the Transatlantic slave trade and shipped to the Americas, only a little over 10 million made it. The Transatlantic slave trade was a small segment of the popular global slave trade network and was responsible for the deaths of over two point two million future slaves. This mass kidnapping of oblivious Africans occurred across the Atlantic from the early sixteenth to nineteenth century and was the second part of the “Triangular Trade”. The Triangular Trade or Triangle Trade was a trading system between Europe, Africa, and the North America in which commodities such as arms, slaves, sugar, and coffee were transported between the three nations (Lewis). The...
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...Assess the impact of the Continental System on Europe after 1806 “England is a nation of Shopkeepers”- Napoleon Bonaparte It was on the 21st of November 1806 that Napoleon Bonaparte, Emperor of the French, issued the Berlin Decrees; beginning a self-blockade of Europe that would last to some extent or another, for the next 8 years until his abdication on April 11th 1814. Bonaparte is purported to have believed that his policy of Blocus Continental would lead to inflation and large-scale debt within Britain, and while his desired impact of the Continental System unto the UK was not quite so dramatic, the affects that Napoleon intended as a result of the Berlin Decrees were extremely significant in terms of their impact upon Europe. However, there were also numerous consequential impacts of the Continental System which need to be examined if an objective assessment of its impacts upon Europe is to be made; aided by the classification of impacts into short and long term and positive or negative. The Continental System was intended as a way in which Bonaparte could force Britain into a peace, but its primary effect was that of alienation. After the Milan Decrees (17th December, 1807) endorsed and actively legislated for the capture of neutral ships sailing in international waters if they had traded at a British Port, carried British goods; or merely had allowed the Royal Navy to search their ship. This effectively changed the way in which trade worked across the Globe...
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