The Problem Of A Economic Crisis

2657 WordsSep 25, 201411 Pages
The aim of this report is to understand what happened globally in economy for the last 7 years in order to build an affective and precise managerial strategy for Global Hotel in to generate profitability and create a successful business. What is the meaning of crisis and economic recessions? Business Dictionary is defining crisis as “a situation in witch an economy experiences a sudden downtown brought on by a financial crisis” (BusinessDictionary.com, 2014). The major sign of an economic crisis is the falling of GDP, the drying up of liquidity and rising or falling of prices generated by inflation or deflation. One form of economic crisis is the recession. The National Bureau of Economic Research is defining economic recessions as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production and wholesale-retail sales". More specifically, recession is defined as when businesses cease to expand, the GDP diminishes for two consecutive quarters, the rate of unemployment rises and housing prices decline.” (Morah, 2009) The reasons of world recession? The actual economic crisis were starting in 2008 with a financial crisis that had spread though the USA and became quickly almost global, affecting world economy. David Kotz, considered that world economy faced not just a severe economic and financial crisis, but structural, neoliberal
Open Document