Evaluate the impact of global recession on international trade and investment with respect to the country of your choice.

Résumé du document

In the last few years, the International Business has been hit by a global recession. Economists were talking about the current situation of some countries, companies or economic issues more or less close to a situation of recession. These comments were relayed by lots of public media and it started to become a common topic for everyone, ordinary people as well. Before going into the thick of things and evaluate the impacts of this current global recession, a definition of what a global recession is, is required. Actually, lots of definitions and point of views exist concerning this status of slowdown in the economy but all categorize quite the same things. The main difference is between on one hand, the Gross Domestic Product (GDP) as a reference, which is an indicator of economic activity and on the other hand, the United States view based on the National Bureau of Economic Research (NBER). When we take the GDP measure, it is actually based on the works of Julius Shiskin, a former economist and statistics professor who played a big role in the analysis of the business-cycle and economic statistics.

Extraits

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[...] Before going into the thick of things and evaluating the impact of this current global recession, we need to define global recession. There are many definitions and point of views that exist regarding the status of slowdown in the economy but all categorize almost similar characteristics of the economy . The main difference is between the Gross Domestic Product (GDP) as a reference which is an indicator of economic activity. The United States view is based on the National Bureau of Economic Research (NBER). [...]

[...] There was a fall of of the building permits in 2008 and a collapse of in the number of undertakings. Nexity ranking at the top in this sector announced a loss of 500 jobs one year ago and Alain Dinin, the CEO, estimated that workers were threatened with unemployment because of the diminution of undertakers. These sectors, and also the banking sector, normally source jobs and hire less, which force governments and institutions to find solutions for both long and short/middle term repercussions. [...]

[...] On the basis of these findings, it is clear that this global recession affects the international business by contaminating the national economies. Even if the countries do not face similar consequences in terms of the damages caused by this crisis, the phenomenon will not end overnight. As France's case was seen in this coursework, the current climate is not too bad and even if it had affected many companies and households, the media seem to have switched over to another subject. [...]

[...] Reality focuses (Companies, industries, sectors, etc.) We saw in the first subpart of the second part that in international trade, France is not too affected by the global recession, but it completely depends on the sectors which are affected. The French industry is totally in recession and the industrial production index had fallen of in 2008 according to an INSEE survey. The biggest impact concerns the major firms of the automobile sector Renault and PSA Peugeot Citroën. As sales were falling in this sector post recession, companies avoided dealing with huge amounts of stock and decided to close almost all of their factories during some weeks. [...]