Global Recession Effects on Emerging Economies Free Essay Example, 6250 words

The global recession is an economic issue that currently prevails over all others. With the recession, the economic activities of a country go downhill over a period of time in a business cycle. A business cycle is the measure of economy-wide economic activity over several months or years and is calculated through the fluctuations in the production and incomes generated within the economy over that period of time. During recession demand, business profits, capacity utilization, investment spending, employment, Gross Domestic Product (GDP), household incomes as well as budgeting are affected negatively. With the slowdown in the global economy, all stakeholders are affected. Multinational and international industries, local industries, government establishments and the consumers themselves are affected by the changes in the economic status of the country. Global recession also has a great impact on the value of local and international currencies, generally affecting end-users and hous eholds. As a result, the purchasing power of the consumers goes down. For the last few decades, most countries of the world have opened their economies and have accepted that market economy is the best for global trade and prosperity. We will write a custom essay sample on Global Recession Effects on Emerging Economies or any topic specifically for you Only $17.96 $11.86/page This is in contrast to all previous recessions. The developed economies, both western and eastern, have suffered in terms of loss of business assets and markets, larger unemployment and erosion of their GDP.