Financial Crisis Assignment Case Study Example | Topics and Well Written Essays - 1250 words

Financial Crisis Assignment - Case Study Example Its effects were far reached and almost everyone on the globe was impacted by it on some level. Those who were closer to financial markets and deeply involved in the investment business faced greater impacts and are still incurring huge losses. This crisis raised questions that pointed fingers on the functioning of the global financial markets. The liquidity crisis was triggered by a bunch of policies that were implemented by the United States banking system to promote massive investment and growth in the economy. Nevertheless, what started as an attempt to increase consumer spending and encourage investor confidence soon turned out to be the underlying weakness in the financial system. The imbalance in the global economy became too massive for any individual government to control and with the passage of time it only worsened. A critical part was played by the developed economies whose excessively loose monetary policies during the early part of this decade contributed in widening th e gap between the West and the East. It is very interesting to know that the budget deficit of the United States was at an all time high during 2006-2007, while on the other hand huge surpluses were being recorded in Asia, particularly China and other oil exporting countries of Middle East. If we look at figures they reveal a clearer picture, the current account balance as a percent of GDP for US was -4.7%, while for China, Saudi Arabia, Russia and UAE was 10%, 28.9%, 6.1% and 15.8% respectively. Analyzing the figures it clarifies that even after the West was generating billions of dollars in revenue, the global net flow was concentrated towards the Eastern giants as they were becoming powerful by the day. This can be strongly attributed to the fact that the gap between the saving-investment function was extensive and this gap was only widening with time since developing countries started relying more heavily on developed economies to provide for their development expenditures. Ther e were some direct impacts of these huge cross-border financial flows on the financial intermediation process. (Mohan) One of the major causes of the crisis is attributed to the sub-prime lending in the housing industry in America. In order to increase the share several banks gave loans to individuals who were doubtful of paying back their installments in the future. Nevertheless, since in the short run it would show an artificial boast in the economy along with a positive growth of the company many bankers and financial institutions to fulfill their personal interest gave top notch credit ratings to doubtful individuals. This resulted in a massive spending in the housing sector even though it was clear this was only short-lived. Banks gave loans on negligible interest rates at times even below 1%, showing the extent of how eager they were to raise their customer base. The financial sector was involved in a personal struggle to widen its customer base. Derivates were used to inject huge sums of money from the investors in the market, but these derivatives were passed on to other investors and so on. The original derivative holder had no idea who was in possession of his derivative as it was a long chain that no one was aware of. The derivative market surpassed the whole US GDP number and according to estimates in 2010 the US GDP stood at $14 trillion dollars compared to the $300 trillion derivative market. It is apparent that the market was financially diluted and

MBA MARKETING PAPER Essay Example | Topics and Well Written Essays - 2250 words

MBA MARKETING PAPER - Essay Example cess of interaction between the organizations and consumers is undergoing a significant change and hence the process of marketing communication has also changed significantly over the past few years. The big question is that how this changed communication would influence the overall marketing concepts. Today internet is utilized as a great medium of marketing. Organizations have been almost forced to use internet as a medium of marketing mainly because of changing consumer behavior with respect to the change in communication process. With the increase in number users of World Wide Web and internet there would be more use of these two as a medium of marketing communication. There are several operational and commercial advantages that internet provide to the marketers. In reply marketers should properly use the platform of internet as there are opportunities of delivering the contents in varieties of ways. The applicability of internet in the marketing communication process has shown t hat there is huge difference in information and the vehicle that is used to deliver information. According to the discussion in the article, internet is such an agency that enables marketers to integrate different aspects of marketing communication. Marketers can integrate different off line and online tactics with the objective of meeting the overall long term strategic goal of the organization. In internet dominated market place consumers are considered as active participants rather than passive recipients in the communication process. This actually has challenged the functionalist view of communication because today after the arrival of World Wide Web and internet, traditional and hegemonic media has been integrated and converted into a hyper electronic market place where the process of communication between the consumer and the marketer are more dialogic and flexible. Previously marketers are found to be more dependent on some traditional mechanistic communication models and this