The Potential Challenges in the UK Automobile Branch - Statistics Project Example

Download file to see previous pages Of all the significant socio-economic and socio-political changes whichever upturned the preconceived ideas of the world, globalization had been one of the most significant of all. In fact, the change cannot be considered anything less than a revolution of a sort which liberated the pre-emptive stance posed by various economies. It gave them a new idea about their individual growth potentials which now seemed to have been dwarfed so far. It bared new grounds for the investors around the world to pour their resources and soon, they were left awestruck at the substantial yields that the same quantity could reap by a sheer change of location. The entire world reached a new height of economic growth with every inch of the globe enjoying the waves of the new phase. There was a sudden surge in trade activities around the world accompanied by changes in the tastes and preferences of people. The consumers could no longer restrain their choices to indigenously produced commodities. A flurry of activities led to a rise in the average level of income throughout the liberalized world and very soon it was realized that people could no longer maintain their previous standard of living. In short, the liberalization move (which was the one triggering globalization) appeared to be one of the most prudent ones which had the potential to lead the world to an epitome of success (Ali, 2000).
However, what missed the perceptions of the global leaders at that time was that “liberalization” was just another version of experiencing a “multiplicative effect”. Like the gains arising in one part of the world were transmitted to the others linked to it, so did the losses arising in them proliferate to other parts. On the whole, liberalization or globalization led to a large scale contagion effect among various parts of the globe. The most significant or rather the most malicious demonstration of the reality was revealed when the global meltdown trapped the entire world in its clutches soon after the beginning of the new millennium. Though initiated in the financial market of USA, its impact soon spread to other sectors of the economy as well, all of which were integrally connected with one another. In fact, by virtue of globalization, the corresponding sectors in peer nations could not prevent the consequences too. With liberalized trade becoming the new-age mantra for economic development and growth, there was hardly any leeway left for a region to escape the ripples of an external shock. UK being a major trade partner of the USA happened to be one of the earliest ones to suffer from the shock. Actually, more than commodity trade, the two are linked together financially. But irrespective of the basis of their association, the nation badly suffered the brunt of the financial shock. The following graph depicting the GDP growth rate reveals the bitter episode that the nation went through during the period.   ...Download file to see next pagesRead More