Impact of Recession on Automobile Industry
This essay proposes to investigate the effects of recession on the automobile industry in world specifically in United Kingdom, United States, India and Japan. This includes its effects on employment sector, advertisement sector, Research & Development Sector, Banking Sector and other sectors related to this, the effect on overall economy and the related terminologies thereof. Also, the aim is to the study of effect of recession on downturn in automobile industry due to changes in Trade Agreements between two countries regarding export and import policies of this industry.
‘The National Bureau of Economic Research formally defines a recession as three consecutive quarters of falling real gross domestic product (GDP).’ (Company., 2003). As such there is no perfect definition of recession but as per the past experiences and research the above definition has been brought into limelight. Some economist says that when there is fall in GDP of 2 quarters there arises a situation of recession. There are any times of recession and none of the recessions are alike. If we take recent situation of recession, It has been caused by a shock to the availability of credit, a huge growing up of debt which needs to be unwound and its growing across the entire world. The global economic crisis began somewhere in 2007 and grew up in 2008 shocked most of the countries. Recession which started from USA spread all over the world in few months. There were all the sectors of business which were affected by this recession. The situation started to go from bad to worse day by day. Banks stopped financing to various companies so the working was affected. In return the sales of various commodities started declining as purchasing power began to slow down. There was wide spread unemployment in various sectors of business. Many economists were struggling to find the remedies for this great recession but were not able to find the solution. Thus this crises was becoming a major issue for most
‘The National Bureau of Economic Research formally defines a recession as three consecutive quarters of falling real gross domestic product (GDP).’ (Company., 2003). As such there is no perfect definition of recession but as per the past experiences and research the above definition has been brought into limelight. Some economist says that when there is fall in GDP of 2 quarters there arises a situation of recession. There are any times of recession and none of the recessions are alike. If we take recent situation of recession, It has been caused by a shock to the availability of credit, a huge growing up of debt which needs to be unwound and its growing across the entire world. The global economic crisis began somewhere in 2007 and grew up in 2008 shocked most of the countries. Recession which started from USA spread all over the world in few months. There were all the sectors of business which were affected by this recession. The situation started to go from bad to worse day by day. Banks stopped financing to various companies so the working was affected. In return the sales of various commodities started declining as purchasing power began to slow down. There was wide spread unemployment in various sectors of business. Many economists were struggling to find the remedies for this great recession but were not able to find the solution. Thus this crises was becoming a major issue for most