Recently, there has been a global recession. The world economy has suffered from this global recession. Many businesses have shut down or most huge amounts of money. In this research paper we will discuss the recent global recession and how it has affected companies all over the world. Companies all around the world maintain emergency systems which can help deal with such situations. These strategies are meant to prepare the organization for future events. In our paper, we will find out whether these strategies are actually helpful and how many companies actually work on them.
LITERATURE REVIEWDuring the past few years the world at large has experienced a recession like never before. Major organizations have shut down because of this recession. Economies around the world have suffered huge losses and have become victim to inflation. The governments and the Federal banks have not been able to handle the situation.
An economic recession in very broad terms is when the economic activity in a country is low.
Recession occurs in an economy when the business cycle turns downwards. It is also referred to as a decline in the Gross Domestic Product (GDP) of a country. Many Economists say that there is a recession in the economy when the GDP of two or more consecutive quarters is negative. (Lahiri, K & Moore, G.H.)During a recession there is less buying activity in the economy as people have less money to spend. There is high unemployment along with high inflation. Recessions can vary in their intensity. Most economies around the world experience mild recessions often but when more than one economic factor gets involved, the intensity of the recession can be very high and can last for a longer period of time. One such economic depression was experienced in the 1930's; it is referred...