Domain: International Economics
The general impact of the global financial crisis on the economic and financial conditions of the international market place can be gathered from the changes in the performance of big multinationals, central banks and the governments of the nations. However, this report focuses on the reasons behind the initiation of the global recession, its influence on the corporate segment, the responses of the firms and the current position of the recession. It is yet debateable among scholars regarding the beginning of the recession but most of them consider the micro-credit policy of US which led to the recession. On the other hand, the corporate sector faced critical conditions as money flow in the market reduced as a result of decreased consumer confidence. Another crucial set back was the increased job cuts in order to maintain the operational expenses. Most of the firms tried to counter the impact of global recession by reducing their activities and redesigning their business activities for facing the next boom period while others engaged in the new product or service development processes for keeping the consumers engaged with the business. In context of the current state of the recession, some economists believe that the after effects of the recession still exists but the US Government maintains that the current economic problems faced are not related to the global financial meltdown. The recommendations provided are to focus on new product and service development and also to develop the business network by forming alliances and partnerships with other relevant institutions. The study concluded that while the global financial crisis is considered to be over other economic problems being faced by the organisations and governments can be a sign that the phenomena still exists.