Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Business economic - Essay Example

Comments (0) Cite this document
i) Recession refers to represents a contraction in the business cycle resulting in decline in economy activity. It can be represented as a fall in GDP which comprises of Consumption, Investment, Government Expenditure and Net Exports (GDP(Y) = C+I+G+NX) (Michl, 2002)…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.3% of users find it useful
Business economic
Read Text Preview

Extract of sample "Business economic"

Download file to see previous pages Thus, a double-dip recession occurs when the GDP rises to positive levels (the recovery period) followed by negative levels (another recession) (Quiggin, 2010). It is often referred to as the “W-shaped” recession (Quiggin, 2010). One of the most prominent double-dip recessions took place in the 1980’s in the United States (Appendix 1) (Quiggin, 2010). Two recessions occurred in the 1980’s in the United States. Initially, the economy shrunk by 8%, then grew at 8% after which the economy dipped into the second recession due to the Federal Reserve’s policy to raise interest rates to curb inflation (Quiggin, 2010). Following that, the economy re-entered into growth for the rest of the years (Quiggin, 2010). Although, there are no definite characteristics that define a recession, there are a few symptoms that are generally agreed by economists. First is the inverted yield curve model which was determined by Jonathan H. Wright which uses 10 year yield of Treasury Securities as an input (LaBonte et al., 2010). Second, is the change in unemployment rate over a three month period (LaBonte et al., 2010). Third, lower prices of assets including real estate and financial assets as well as large personal and corporate debts (LaBonte et al., 2010). ii) The contraction in Ireland’s economy was of particular significance at a time when other Euro nations were showing positive growth rates. This fall in Ireland’s GDP is attributed firstly, according to Author of the Bulletin, Dr. Dan McLaughlin, Group Chief Economist, Bank of Ireland, to the drastic fall in capital spending. Although capital spending decreased by 11%, on average, throughout the rest of the developed world; in Ireland it fell by a drastic 30% along with a 34% decline in building and construction activity (McLaughlin, 2010). The share of construction in general, and house-building in particular now accounts for only 2.5% of Ireland’s GDP, compared to 12% in 2005 (McLaughlin, 2010). Secondly, consumption expenditure also saw a decline throughout the Western regime by 1.1%, due to reduced employment and falling growth in wages (McLaughlin, 2010). In the case of Ireland, employment slashed by 8% along with decline in wages which partially contributes to the fall in real consumer purchase power of Ireland (McLaughlin, 2010). A significant trend emerged at this point; that of higher savings. Although real disposable income dipped in Ireland, it was accompanied by a rise in the marginal propensity to save, leading to a higher savings ratio (McLaughlin, 2010). At the same time, Ireland’s exports fell by much more than that of its Euro competitors, implying that Net Exports also declined. Thus, to sum up; since all the components of GDP including consumption, investment and government expenditure along with net exports fell, GDP was bound to decline. iii) A Keynesian style stimulus package is a policy measure used by policymakers and institutions that involves stimulating one or more of the components that make up aggregate demand in an attempt to increase employment, income and output of an economy (Tool & Samuels, 1989). This approach is consistent with the Keynesian theory that negative output gap can lead to a bottleneck in the economy; a situation it finds difficult to escape. The paradox of thrift comes into force whereby loss of valuable consumer and investor confidence combined with high propensity to save exacerbates the recession (Meltzer, 1988). If such is the situation, ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
(“Business economic Essay Example | Topics and Well Written Essays - 1750 words”, n.d.)
Retrieved from
(Business Economic Essay Example | Topics and Well Written Essays - 1750 Words)
“Business Economic Essay Example | Topics and Well Written Essays - 1750 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Business economic

The Economic Impact of the Emergence of China and India

The main macroeconomic variable that toys in the global economy’s shift are the emergence of India and China as new superpowers. This emergence certainly has a number of implications, but among the most relevant are: disruption of the equilibrium of the global economy which results in rising demand of goods, giving way to worldwide inflation; the attractiveness of outsourcing to these countries due to low cost but high talent workforce of these countries for cheaper operations.
The growing middle class of China and India results in booming demand for the automobile industry. This increase in demand, with the increasing purchasing power of these countries’ people, is not limited to automobiles but more apparent in...
10 Pages (2500 words) Assignment

Internal and External Environmental Analysis for the Bakery Business

Liberalization of foreign investment and technology policy of the government is supportive of establishing industrial units in the country.

Threat: The UK food regulatory authority is planning to enforce the EC Regulations relating to food labeling. The labeling requirements under the new regulations will affect the food industry as the suppliers will be legally obliged to disclose the GM content of foods to the caterers. Thus business firms in the bakery industry also will be effected through the exclusion of flexible manner of labeling arrangements in the case of flour confectionery involving GM Soya or maize. (Genetically modified and novel foods (labeling) (England) regulations, 2000).

Trend: The new subs...
6 Pages (1500 words) Case Study

Evandale's Business Plan

Evandale’s mission would have a strong impact on the company’s later brand development.
When a company determines its mission and its vision, it needed to determine its objectives to accomplish that vision. I did not see the objectives—where the company was heading through in the presentation. A clear objective would have enabled me, as an audience to also picture where the company would want to go and would serve as the benchmark for me to assess the later strategic choices the company would state in the presentation.
According to the slides, the potential demand for caviar and the sturgeon products are “100x” bigger than the current supply. I would have wanted to see a reliable source for...
7 Pages (1750 words) Case Study

The Management, Leadership and Teamwork Competencies Required by a Small Business Owner

On the other hand organizational leadership is defined as the ability based on the specific skill of an individual to lead his/her subordinates in a manner that pre-planned organizational goals could be achieved within the defined time-frame.

According to Burns (1978) and Bass (1985), transformational leadership has a set of category constructs such as values, morals, farsightedness, long term goals, principles, acute awareness about the dividing line between causes and symptoms, mission statements, strategic perspectives, and human resources. Similarly, they identify a set of category constructs in the transactional leadership also. For instance concentration on the task at hand, short term goals and tactics, confusion co...
6 Pages (1500 words) Coursework

Business Etquette for Business Communications Course

Who wants to give a guess? How about you (pointing at someone in the audience), yes, what is your name? Adam? What do you think, Adam – Money, Machines, Management, and Manpower? Why do you think so? And how about you, ma’am (someone else in the audience) – do you agree with him?

I think we are all in agreement: you could have Money, Machines and Management, but without Manpower, you cannot have a business. And unless you have good Manpower working well together, you cannot have a successful business.

Do people work well together naturally? Those of you who are familiar with office politics will say, “Of course not!” You are right: left to themselves, few people work well toget...
7 Pages (1750 words) Speech or Presentation

Economic Analysis of India

The country’s economy is fast growing with a stable political system that encourages foreign investment although with certain restrictions. The country generally has good energy, transport and communication systems which make the cost of doing business affordably.

The Republic of India found South of Asia is by far the world’s most populous democracy and ranks seventh largest in terms of geographical area (Brown, 1994). India is also the second most highly populated country in the world. The country has a rich culture with four major religions having originally emerged from it; Sikhism, Buddhism, Hinduism, and Jainism. The Indian Republic consists of seven union territories and 28 states and ranks twelfth la...
8 Pages (2000 words) Case Study

Business Plan Real Estate Agency

re representing our company as their business consultants and our responsibilities are limited to the knowledge of the client’s business and information provided by the client.
The company Of-Fit has been operating as office supplies and equipment supplier since 1998. Their corporate office is in Aberdeen and it has excellent industry relations. The company is a sole proprietorship and its owner is Mr. Andrew Schwatz who has been working in the industry for more than 20 years. The company current staff is 8 and its revenues are £115,690 and £156,178 in 2008. The company aims to expand its operations in other business areas and regions of the UK.
The detailed business plan developed for this report incor...
12 Pages (3000 words) Business Plan

Business Sustainability and Society: Coca-Cola Company

...Running Head: Business Sustainability & Society Business Sustainability & Society [Institute’s Business Sustainability & Society Introduction Since centuries, ethics has been a crucial and significant component of the human societies that contributed enormously in the creation of norms and values through religious influences, as well as through contribution of intellectuals and philosophers in the society. Unfortunately, nowadays, it is an observation that individuals, organizations, and even nations have commenced to overlook the phenomenon of ethics in their practices, specifically in the business sector that has become the major stakeholder confronting criticisms related to ethical practices. Critics (Crane, pp. 23-29, 2007) argue...
10 Pages (2500 words) Case Study

International Business: World Economic Forum and Davos 2010

...Introduction Globalization, one of the most hotly debated issues means global capitalism to some while others consider it to be the continuation of modernism with the forces of wealth, progress, democracy and happiness at play (Kellner, 2002). Globalization is considered to be beneficial which promotes economic prosperity, cultural diversity and technological advancement. According to the critical social theory, technology and capital work together to create a new globalized and interconnected world. While each force of globalization is important, technological revolution has impacted the business models, value creation and differentiation (Spelman, 2010). The cloud computing technologies that have made the popular social networking...
7 Pages (1750 words) Coursework

Globalization and World Economic Forum at Davos 2010

The seven forces of globalization are; Markets, Production, Culture, Labor, Technology, Environment, and Liberalization. Of these factors, the globalization of markets has engaged substantial attention of the firms and academia. Some markets are highly globalized, while some are not. The scale of market globalization is determined by the extent of globalization of customers, customer needs, distribution channels and marketing strategies of the players in the industry (Stonehouse et al, 2004).

The phenomenon of globalization of markets has resulted in both advantages and disadvantages. It has resulted in the convergence in the requirement of features in a product and augmentation of the intensity of B2B and B2C communica...
7 Pages (1750 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Business economic for FREE!

Contact Us