Business Analysis: The Pestel Analysis Of Mercedes Benz

Inadequate monetary policy conducted by the U.S. Federal Reserve System in the 1930s and an increase of duties on imported goods are often cited as other fundamental causes of the Great

GM is the leader in the automotive market in North America and China, the world’s largest automotive markets.

The Great Recession was a period of general economic decline observed by world markets beginning around the end of the first decade of the 21st century. The recession was a result of a financial crisis in 2007 which effected the years to come . The primary source of this problem was that banks were creating too much money. In addition, banks had doubled the amount of money and debt in the economy. Resulting in a financial crisis as the government and banks had failed to constrain the financial system’s creation of private credit and money.

The fixed-rate loans were sold at a loss in order to balance withdrawals. That asset liability mismatch was identified as the primary cause of the savings and loan crisis. Jobs were lost and unemployment rose from around 7.5% to more than 10%. The recession caused a loss of 2.9 million jobs, representing a 3% drop in payroll employment.

The Automobile business is a blend of organizations and companies engaged with the plan, advancement, assembling, promoting, and offering of vehicles. External environment is outside influences which has an effect on the industry. The environment factors help the industry to go through vast changes. Emergence of new competition have huge impact on vehicle development and design. Advancement of technology has helped the industry to use more high-tech driving capabilities.

Due to the amount of wealth brought into England by the middle class workers, the number of savings accounts more than tripled while the total euros in the accounts more than doubled from 1831 to 1864 (good will use primary pg 2). As the banks received more money, they had more money to invest or give out as loans. This money went to directly support and influence the British economy, and it originated from the middle classes. The middle class acquired a greater influence over the economic part of England due to its financial growth.

Subsequently, the companies will decrease their LCD monitor production, leading to the upsurge of its price which will directly impact the market demand. A statement by Panasonic India managing director Manish Sharma to the rise of LCD monitors price by 2-4 percent in The Economics Times (2012), “The signals are not good considering consumer demand has already been low due to recurrent price hikes on account of commodity inflation and other macro-economic conditions”. From this, it can be seen that China is indirectly manipulating the market price of LCD

However, what most people don’t understand is that recessions are a normal part of the economy that the world experiences. The U.S. is a mixed economy, meaning which it’s a combination of one or more of the following three characteristics; public and private ownership of industry, market based allocation with economic planning, or free-markets with state interventionism. In order to completely understand the causes of the current economic crisis it is most helpful to look back over to the post second world war period. From the 1950s to the mid 1970s, the rate of profit in the U.S. economy declined almost 50% and this critical decrease in the rate seemed to have been a piece of the general overall pattern during this period, influencing every single capitalist nation. According to Marxist’s theory, this very notable decrease in the rate of profit was the main reason for higher unemployment, higher inflation, and lower wages that

In addition the GDP had decreased by more than 25%. The pivotal cause of The Great Depression was the decline in spending that led to a decline in production. Nevertheless there were many other reasons that contributed such as the stock market crash where consumer purchases of resilient goods and business investment fell sharply after the crash. The most likely explanation is owing to the uncertainty of future incomes generated by the financial crisis. One of the very first clarifications for the causation of The Great Depression is owed to the gold standard.

Evidence to this is the division between rural-urban areas of a country such as Brazil, China and India. There are trade imbalances due to globalisation. As when a country 's large economies are affected, all over the effects are felt. Domestic jobs and businesses are lost due to decrease in trade. Large multi-national companies avoid paying taxes because they have the ability to exploit taxes havens in different

In this way, every economic factors of the nation is affected by recession. Q.5 Business cycle is the fluctuation in the nation 's economy over a period of time. It is defined in terms of boom and recession. During boom, there is expansion in the economy whereas during recession there is contraction.

Globalization has many negative effects in our world. The first problem with globalization is that international trade is exacerbating income inequalities between industrialized and nonindustrialized nations. Secondly, Global commerce is dominating the corps that want to maximize profits without a regard for the development of the country. Lastly, the countries involved with globalization lower their environmental standards in order to attract foreign business investments. In order to reform globalization, the government should change the ‘rules’ because they are unequal.