Recession & its effects ppt
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The document summarizes the effects of recession on the economies of the United Kingdom and India. It finds that the UK was more severely impacted due to its investments in risky financial products prior to the recession. In contrast, India's economy was less affected because the country's growth was robust and its financial system was not as exposed. The document recommends fiscal and monetary policies used by both countries to mitigate the recession's impacts.
Recession & its effects ppt
- 1. RECESSION & ITS EFFECTS ON UNITED KINGDOM & INDIA Submitted by - Devriti R. L. Rana Section D A1802010152 MBA-IB(2010-12)
- 2. U.K. – Country Fact File United Kingdom constitutes of England, Northern Ireland, Scotland and Wales. Area Population Devolved Legal Flag (km²) (2010 estimate) Capital legislature system Name England 130,395 51.6 million London No English law Scotland 78,772 5.2 million Edinburgh Yes Scots law Contemporary Welsh Wales 20,779 3.0 million Cardiff Yes Law Northern Ireland None 13,843 1.8 million Belfast Yes Northern Ireland law United Kingdom 243,789 62.1 million London
- 3. Government & Economy The United Kingdom is a constitutional monarchy and parliamentary democracy, with a queen and a parliament that has two houses: the House of Lords, with 574 life peers, 92 hereditary peers, and 26 bishops; and the House of Commons, which has 651 popularly elected members. England is the largest constituent part of the United K ingdom and accounts for 83 per cent of its population and , m of its econom activity. ost ic The UK is the 6th largest economy in the world in 2010 according to nominal GDP (current prices, US dollars) and the 8th largest in the world according to GDP (PPP). In 2010, UK’s GDP (PPP) was US$2.172 trillion or 2.982% of the world’s GDP. UK still maintains its own economy and has chosen to continue using the Pound Sterling as its national currency
- 4. Others English, Welsh, Irish, Ulster Scots, Cornish, Gaelic and British Sign Language are natively used in the United kingdom. A Multicultural Society How meetings are conducted is often determined by the composition of people attending: If everyone is at the same level, there is generally a free flow of ideas and opinions. If there is a senior ranking person in the room, that person will do most of the speaking. Meetings always have a clearly defined purpose, which may include an agenda. There will be a brief amount of small talk before getting down to the business at hand. If you make a presentation, avoid making exaggerated claims. Make certain your presentation and any materials provided appear professional and well thought out. Be prepared to back up your claims with facts and figures. The British rely on facts, rather than emotions, to make decisions. Maintain eye contact and a few feet of personal space. After a meeting, send a letter summarizing what was decided and the next steps to be taken.
- 5. Experience I had the opportunity of exploring Singapore in the year 2009 and London in 2010 and 2011. The experience was explicit and a lot of global exposure was intaken. After a long history on United Kingdom, as stated above, let me share a little of my personal experience in U.K. I reached London on 29th of September, 2011 to study in Amity London, located in the Central London at Tottenham Court Road. Our classes were held in Birkbeck University which was a 5 minutes’ walk from amity house. The subjects taught to us were – Marketing management. Finance management. Human Resource. Organisational behaviour. All of which were taught in line with the British education system. It was a whole new experience as we have more interactive classes there and a lot of visits to industries and places, some being – Jaguar BPC Windsor castle Oxford university Cambridge university Cadbury’s
- 6. Scope and limitations of the study…. The study aims to cover issues regarding the recession and its adverse effects on the economies. It shall provide a clear picture of where the economies stand as of now. The study shall prove to be a helpful source to all institutions and individuals interested to analyze recession and its effect on the world’s two major economies. Limitations The time given was too less for the completion of the research. It was difficult to collect data as recession has been frequent in the past 100 years and studying of different periods was slightly cumbersome.
- 7. Research Methodology Serial No. Description Type 1. Objective To analyze the degree of effect recession had on the two economies. 2. Research design Exploratory and Descriptive. 3. Sample Area Economies of U.K. and India. 4. Type of Data Secondary.
- 8. Comparative Study on the Effects of Recession on U.K. & India The main reason for UK facing severe effects of recession was that they invested in CDOs(Collateralized Debt obligations). Borrowers started to default on their loans and the value of these investments plummeted resulting in huge losses for banks globally. Most people in the UK have little interest in the stock market unlike India where many have their pensions and savings invested in it. Most people believe that the stock market in some way reflects the commercial processes that are in train around the World. This is another major reason for the difference in the effect of recession on both economies. UK, being a developed country, and India still a developing economy, has its excess money created by monetary inflation going first into capital markets and then to buy stock and bonds, whereas in India the excess money that is created by inflation is invested on long term bonds and securities directly, giving the government a long term surety. The Indian economy was not adversely affected by the current round of global volatility, compared to the U.K., which faced long term policy changes due to the recent credit crunch. Indian Finance Ministry sources argue that the Indian economic growth story is so robust that the current uncertainty will cause no more than a minor blip in its confident trajectory.
- 9. Recommendations Now that we have a clear scenario of the recession scenario in UK and India, we can now see why these countries had to face the crisis and all the methods and policies they adapted. Cutting Interest Rates Short Term stimulus /Long Term Structural change Preventing Home repossessions. Expansionary Fiscal Policy Devaluation Quantitative Easing
- 10. Conclusion The current global economic recession is probably the best thing that could have happened for the global environment. Anything that helps to reduce consumption and persuades people to behave in a more frugal manner helps to protect the environment. What is clear is that the environmental lobby will get what it wants but not in the way that it expected. Over the last twenty years the British Government has been doing very well at cutting the country's carbon emissions. Destroying the countries manufacturing capability and then its service sector has seen a significantly reduction in the country's carbon footprint. Nobel Prize winner Paul Krugman said up to $5 trillion money can expedite recovery from recession and projects such as Freight rail could bring fast money. Many more solutions have been talked about but things will not recover soon. In case all turns out to be in vain, time is the greatest healer. Let’s wish time moves faster than ever expected and the wound gets healed soon. At the end I would like to share a phrase I read somewhere – Recession is ‘Greed of som woes of B e, illions’.