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Nternational Business Environment - Essay Example

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Name Institution Course Instructor Date International Business Environment The reverberation of the recent economic recession is still observable in most countries across the world. The recession did not spare even the feared nations in the world such as United Kingdom…
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Nternational Business Environment

Download file to see previous pages... Many economists directed their concern towards creating measures that would normalise the situation. This paper is analyses the response of UK government to the economic recession. 1. United Kingdom hosts some of the largest financial institutions in the world. Their role in the world economy is very crucial because many investors across the world have invested their treasures in these banks. The recent economic recession shook the foundation of UK economy with many institutions retrogressing because of the effects of the financial spill. North England and Scotland felt the effects of the recession that was evident through closure of businesses, loss of jobs, increase in commodity prices, government inability to offer crucial services to the nation, and social life became very hard (Boffey, 2012:1). The government could not control the inflation levels because of the debts that it registered through the economic meltdown. The economic meltdown has created tension in the political sphere because many politicians do not know how to contain citizens who have shown their displeasure with the current trends they observe in the market. Political platform becomes greasy when politicians fail to address issues that affect the common person. Many economic critics believe that the UK government has powers, which can institute normalcy in the market (Gibb, and Leishman, 2011:23). David Cameroon lamented the action taken by the western nations in responding to the biting effects of the financial collapse. Many critics directed their concern to the anticipated events that would yield from the status of events. In deed, the crisis is a real mess to life of a common person. The increase in cases of unemployment is a bigger threat that the government of Scotland feel that it should unemployment index. Sharp decline registered in the financial market indicates that the economy is unable to create new opportunity in the job market. The labour market largely depends on the level of economic growth in creating new opportunities for job seekers (Smit, 2010:12). Many people have lamented that they have to work for long hours in order to meet the needs that they were able to meet with normal working hours before the recession. The concern is genuine because pound has lost value. A person has to cough more coins for a product that was affordable before the inflation. Another notable thing in Scotland is that the nation has registered a decline in investor interests. 2. Economists fear that reverberation of the economic crisis can trigger more problems to United Kingdom when it fails to handle it effectively. Speech delivered by Cameroon pointed acquisition to lack of commitment among the western countries in dealing with the crisis. However, some critics believe that UK government should demonstrate that it could exercise authority by restoring the financial spill (Wan, 2004:146). Ideally, it is wise for United King to handle the situation using the optimum development of national economies theory put forward by Michael Porter and Adam Smith. Theory argues that a country can promote economic growth if it specialises in creating products that it commands total cost advantage over other competing nations and engage in importation of products that it is unable to produces (Larti, 2010:6). The notion propagated by the theory is that a country should be able to identify areas where it can perform best and use them to its advantage instead of engaging in ...Download file to see next pagesRead More
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