Global Economic And Financial Crisis - 2519 Words

Many lessons were learned from the aftermath of 2008 global economic and financial crisis. One of them was the effect that foreign direct investments (FDI) had on the global economy, particularly on developing countries. By definition, an FDI is an â€Å"investment that involves some ownership and/or operating control. The foreign residents are usually multinational corporations (MNCs)† (Cohn 412). The market crash drastically altered the nature of FDI. After consistent growth between 2003 and 2007, investments in developed countries experienced a steep fall, suffering from about a 29 per cent drop. In contrast, investments in developing countries skyrocketed, peaking at an about 43 per cent increase (UNCTAD 2009). However, more revealing than the unexpected turn of events was the way FDI significantly affected, and was affected by the status of the global economy – showing further importance to one type of economic entity that naturally comes with FDI, multinational corporations. This paper will argue that the ever-constantly increasing presence and influence of MNCs prove that they are entitled to be considered as legitimate global political actors. Despite the considerable negative connotation that MNCs have garnered, their undeniable enormity and influence in generating the flow of FDI, their contribution in hastening the distribution of technology and knowledge throughout the globe, and their status as the absolute major player in modernization and globalization throughShow MoreRelatedGlobal Economic And Financial Crisis Essay840 Words   |  4 Pagesacceleration of overall economic growth over the past decade (until the onset of the global economic and financial crisis) has been accompanied by a significant acceleration in the growth of credit in the economy. This broad trend suggests that high economic growth has been accompanied by financial deepening. However, despite such expansion of the financial sector, increasing concern has been expressed on financial inclusion in recent years (Mohan, 2012)1. One of the key feature of financial deepening is thatRead MoreFinancial Crises And Its Effects On Global Economic Crisis1068 Words   |  5 PagesThe 2007-2008 Financial Crisis- Its Causes and the Involvement of the FED The financial crises that occurred in 2007-2008 had such a big impact on the world that it is now considered a global financial crisis (GFC) or global economic crisis. It is commonly believed that it began in July 2007 with the credit crunch; U.S. investors lost trust in the value of subprime mortgages which caused a liquidity crisis. This had the effect that the U.S. Federal Bank injected a large amount of capital into theRead MoreGlobal Financial Crisis And Its Impact On Economic Policy And Outcomes1402 Words   |  6 PagesFinancialisation is the process in which financial institutions/markets increase in size and gain greater influence over economic policy and outcomes (Palley, 2007).Another link to financialisation is high degree of leverage. This is because with leverage, you can get a loan for 9/10s of the money, so you only need a small portion, and you are able to make lots of profit. Leverage is linked to financialisation in a sense that if it works, you get lots of profit with a working system, however if itRead MoreImpact Of The Economic Disruptions Caused By The Global Financial Crisis Essay1266 Words   |  6 Pagesfrom 2007 to 2009 to ensure inclusion of the effects of the economic disruption caused by the global financial crisis in their study of SCRM and resilience. Academic studies follow significant events. For instance, peaks in published scholarly journal articles on SCRM occurred following disruptions, in 2004 following 9-11 and again in 2009 following the global recession (Ghadge et al., 2012). Data required for variables Company financial information from annual reports will deliver required data toRead MoreEssay on The Impact of the Global Financial Crisis on Economic Growth4072 Words   |  17 PagesEconomic growth The impact of the Global Financial Crisis on economic growth As a result of the global recession, Australia’s GDP was forecasted to contract by 0.5% in 2009-10 in comparison to other advanced economies which were expected to contract by 3.75% in the same year. However minor the reductions in GDP, it was evident that Australia was not exempt from the global recession although is better placed and is expected to perform better than almost all other OECD economies. The global recessionRead MoreNarrative Interview : The Global Economic Climate During The 2008 Global Financial Crisis ( Gfc )1083 Words   |  5 Pagesfather, James Trainor as the ideal candidate to provide a comprehensive recount of the global economic climate during the 2008 Global Financial Crisis (GFC). And how his experiences of economic fluctuations and policies during the GFC changed his perspectives and understandings of macroeconomic decisions, as well as their effects on the modern world. At the time of the Global Financial Crisis, James was the Global Head of Employ ment Tax for the Macquarie Group, one of Australia’s largest investmentRead MoreGlobal Financial Crisis : A Social And Economic System Driven By Network Technologies3327 Words   |  14 PagesRachel Botsman, defines collaborative consumption as â€Å"a social and economic system driven by network technologies that enable the sharing and exchange of assets from spaces to skills to cars in ways and on a scale never possible before† (2012). In this peer economy access is as convenient as ownership, which is attractive to many for economic, environmental, and lifestyle reasons. In the aftermath of the global financial crisis, hundreds of companies have been founded to facilitate peer-to-peerRead MoreThe Problem Of Global Financial Crisis1122 Words   |  5 Pagesreceivables and other financial assets are pooled together, with their cash flows or economic values redirected support payments on related securities.† â€Å"Securitization first emerged in the 1970s with the sale of securities backed by residential mortIn the 21st century, economic problems have incurred an increasing number of people s attention as the economic develop rapidly, and these problems are usually caused by human themselves. For instance, the occurrence of Global Financial Crisis (GFC) in 2007Read MoreThe Global Financial Crisis Of Broward College920 Words   |  4 PagesResearch Paper: The Global Financial Crisis Michelle Beira Broward College There have been few financial crises in the United States. The Global Financial Crisis of 2008 to 2009 was the most recent and before that was The Great Depression of the 1930s. The Global Financial Crisis actually began in 2007 when prices of homes tanked. It not only affected the U.S. but it also affected economies overseas. The entire investment banking industry, some of the biggest insurance companies, enterprisesRead MoreFinancial Crisis Of A Single Country1671 Words   |  7 Pages Table of Contents Summary 2 Financial crisis 3 Impact of financial crisis 4 Effect of financial crisis on different on the economies of different countries 5 Mathematical problems 6 Conclusiom 8 References ..................................................................................................................................................9 Summary Financial crisis has long been a part of global economic recession throughout the history. Here, the purpose of this assignment