Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
TRIZ Matrix is a technique developed by Russian scientists to formalise the process of innovations. TRIZ is a Russian Acronym for Theory of Inventive Problem Solving. The English acronym is TIPS and is often used to refer to the same analysis. The TRIZ is a powerful tool that helps brings the insight of years of […]
What is the P-Value ? The P-Value is a statistical representation of the likelihood that the null hypothesis is true. Therefore the P-Value is the probability that the output (Y) will not change as a result of the variation that we are deliberately introducing in the input (X). Example: If we have a null hypothesis […]
In previous modules on continuity of business, we had discussed how companies need to be prepared for any eventuality – natural or manmade. The discussion was on how fast alternative sites for backup and recovery are made functional in the aftermath of disasters. This article looks at the BPO sector in specific and the necessity […]
Ever since the internet has been invented, the world has become a global village. This means that at the present moment, data can flow freely all over the world. However, many countries are not happy with this arrangement. Countries like Russia and China are already trying to enforce data localization laws which would inhibit the […]
In previous articles, we looked at the humungous benefits that the BPO phenomenon brings to the economies of the host and the target nations. Mainly, we focused on how cost savings for the companies outsourcing their back office work and increased revenues for the companies doing the outsourced work have been actualized leading to a […]
In previous modules, we have alluded to the global economic crisis and the impact it had on the various sectors in the financial and manufacturing industries. This article introduces readers to the global economic crisis and subsequent articles deal with the various dimensions to the crisis and the causal factors that were responsible for the crisis.
The global economic crisis started in summer 2007, though the full impact was not felt till the bankruptcy of the investment bank, Lehmann Brothers in September 2008. The next couple of years witnessed heavy job losses and contraction in the GDP (Gross Domestic Product) of many countries in the West as well as in the developing world.
What started off with the subprime mortgage crisis quickly morphed into a full-fledged crisis of historic proportions prompting many commentators to draw parallels with the Great Depression of the 1930’s.
The global economic crisis was caused by the coming together of several structural as well as business cycle factors that conspired to produce a “perfect storm” of epic proportions. These factors ranged from the collapse of the housing market in the United States, imbalances between the West and the East in terms of trade deficits, reckless and risky speculation and finally, the sovereign debt crisis that was a culmination of years of fiscal profligacy and loose monetary policies.
The point about the global economic crisis or the Great Recession as it is also called is that the crisis exposed the chinks in the armor of the global economy and highlighted the pitfalls of too much integration and interconnectedness. Nowhere was this more apparent than in the aftermath of the collapse of Lehmann Brothers when the entire credit system froze and the global financial system came perilously close to collapse.
The global economic crisis basically originated in the West but had its effects on all economies of the world. Of course, the US and the Europe were the primary victims of the crisis and it can be said that countries like India and China were relatively unscathed in the wake of the crisis. However, this is not to say that these countries have successfully “decoupled” from the west since the tightly knit global economy and the dependence of China on exports to the US for goods and India for services means that these countries have a fair amount of work to do before they can be called safe.
The point here is that the United States and Europe were badly bruised by the crisis and it is still not clear when these countries and their economies would be out of the woods, if at all they would.
Finally, the global economic crisis has undone the many gains that have been made by globalization and hence there are renewed calls for protectionism and for erecting trade barriers in the West as well as in the East. This means that the global economic crisis has dealt a body blow to the global economy which might take years to regain its earlier prosperity.
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