This occurs during the downturns of the business cycle, when the economy is in a recessionary gap. Figure 1 is showing the situation of unemployment in Greece. A fall in aggregate demand will cause a leftward shift in the AD curve from AD1 to AD2. This causes the real GDP to fall and makes firms start to dismiss employers, so increase in unemployment. The long run aggregate supply (LRAS) curved is also decreased in read output from Y1 to YFE as well as a decrease in average price level in the economy.
For example, Mexico has been attributed as a depression to the economy because it was facing a major decline in mining and a shortage in labor during the time when urban population and demand were growing. Uncertainties caused by the rich countries cause losses for the poor countries. Essentially, the poor countries should solve this problem by specializing in production. It can open markets in poor countries, strengthen their method of production and kickoff local businesses. Vincent Ferraro addresses the possible issues which make this policy difficult to follow.
When inflation happens, the real value of money will decrease. Real value of money decreases means our cost of living will increase. Rises in cost of living will cause poorer household suffer more. Therefore, Malaysians become poorer because the money income is not enough for them for purchasing goods and services. Real value of money drops is a serious matter because the purchasing power of Malaysians wills decreases.
The corresponding quick ratios of Marriot international were 0.42, 0.58, 0.38, 0.40 and 0.45 respectively. The Marriot ROIs displayed increasing trend from 2010 however ended up much lower than that of IHG in 2013 (Block and Hirt, 1978). The 2013 and prior period declinations are attributable to the negative impacts of economic down turn, high costs of operations and high competitions. Hence, it can be stated that quick term solvency of both the companies have decreased in 2013, IHG
Nations saw a “harmonized” downturn. Expat oriented economy like Singapore saw large declines and lead to worsening situation such as retrenchment of people and growth in numbers of unemployment. Singapore was not immune to the impact of the Global Financial Crisis. The local economy was broad down between late 2008 to the start of 2009. Singapore was affected in mainly 3 different ways to my understanding.
The higher marginal tax rate of 12% to 20% adds on personal taxes and this discourages high-end investment. The investors are likely to take their capital overseas, which shifts the business frame outside Singapore. Consequently, there is less employment of low and middle-income group workers, which reduces their wage. The richer individuals can still thrive on the investments in other countries but the same does not occur for less privileged workers. Thus, the income gap rises and progressive tax model may be
Indonesia had low inflation, a trade surplus of more than $900 million, huge foreign exchange reserves of more than $20 billion, and a good banking sector. But a large number of Indonesian corporations had been borrowing in U.S. dollars. During the preceding years, as the rupiah had strengthened respective to the dollar, this practice had worked well for these corporations; their effective levels of debt and financing costs had decreased as the local currency's value rose. In July 1997, when Thailand floated the baht, Indonesia's monetary authorities widened the rupiah currency trading band from 8% to 12%. The rupiah suddenly came under severe attack in August.
1.1 Industry and Company Background The telecommunication industry of Malaysia has entered an exceptionally focused environment over the last few decades. According to MCMC (2015), Communication and Multimedia companies’ market capitalisation have declined 6% to RM196.69 billion in contrasted with the previous year. As the figure underneath appeared, this is 11.6% of the total market capitalisation of Bursa Malaysia. At the end of 2015, the Bursa Malaysia KLCI Index was dropped 3.9%, this was because of the weakening Ringgit Malaysia as crude oil price was declined from USD100 to USD34 per barrel low in December 2015. In contrast to the Bursa Malaysia performance, the C&M companies’ performance is fundamentally concentrating on the domestic market.
Frano Llic of travel agency in Germany said, “Tourists have been put off by reports about smog and others problems”. And the percentage of customers that has been booking to China has decreased by 16 percent in the year of 2014. For now, it is considered short-term loss of percentage of money that is often gained through the approach of tourists;
So, it cause can increase the cost of doing business. But with GST system tax, anything GST that has to bear it on acquisition can be claim and it is not a cost to the business. With GST, the Malaysian export will become more efficient and can compete in the global market which there is no GST will levied on exported goods and services. It can make the export sector become stronger and then will contribute to the growth of the country