on one of the hotest topic recession
TRANSCRIPT
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ON ONE OF THE HOTEST TOPIC
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THAT AFFECTS NATION
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SERVES AS A COMMON COLD FOR THE COMPANIES
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IT WHAT HAPPENS WHEN YOUR NEIGHBOUR LOSES HIS
JOB
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THAT’S NAMED
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RECESSION
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RECESSION
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THERE ARE TWO STAGES IN MARKET ECONOMY
1.Growing Market Economy2.Declining Market Economy
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Growing Market Economy
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Declining Market Economy
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There are Two Fctors that Affects The Market
1. DEMAND2. SUPPLY
------------Producer Price -----------Consumer Price
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“ SO, WHAT IS RECESSION? “
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RECESSION IS THE ECONOMY SHRINKING FOR TWO CONSECUTIVE QUARTERS
(6MONTHS) WITH A DECREASE IN THE GDP (GROSS DOMESTIC PRODUCT)
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WHAT IS GROSS DOMESTIC PRODUCT ?
GDP IS A GOOD INDICATOR OF ECONOMYOTHER INDICATORS COULD BE: -UNEMPLOYMENT RATE -CONSUPTION RATE -ACTUAL PERSONAL INCOME
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“
”IF GDP IS GROWING,THE MARKET IS GROWINGDUE TO INCREASED DEMAND
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WHY DOES RECESSION HAPPEN?
1. OVER PRODUCTION: A SITUTION IN WHICHIN WHICH SUPPLY EXCEED THE NATION’S ABILITYTO CONSUME WHAT HAS BEEN PRODUCED.(I.E)WHEN SUPPLY >DEMAND
2. LOW CONFIDENCE LEVEL IN THE CONSUMERS: THE CONSUMERS LOSE THEIR CONFIDENCE IN THE COMPANY AND SELL SELL THEIR SHARES. THEY ALSO FEAR THATTHEY MAY LOSE THIR JOBS AND EVENTUALLY HAVE LESS CONFIDENCEINSPENDING MONEY.
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RECESSION DUE TO ASSIGNABLE CAUSE
RECESSION ALSO OCCURS DUE TO BAD INCIDENTS SUCH AS THREATS AND RUMOURS THAT LEAD INTO A KIND OF WAR.EXAMPLE: SEPTEMBER 11 TERRORIST ATTACK IN US, INTERNATIONAL AIRPORT BLOCK IN THAILAND, MUMBAI ATTACKED IN INDIA.
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SEPTEMBER 11 TERRORIST ATTACK IN US CREATED FEAR IN PEOPLE PEOPLE CANCELLED THEIR TRAVEL PLAN RESULTED IN LOW OCCUPANCY RATE AIRLINES &HOTEL INDUSTRIES BADLY HIT AIRLINES &HOTEL INDUSTRIES OFFERED
DISCOUNT, GIFT COUPONS, TO ATTRACK PEOPLE
BUT STILL NO IMPROVEMENT IN OCCUPANCY RATE AIRLINES &HOTEL INDUSTRIES STARTED “COST REDUCTION” ACTIVITES.
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INDICATORS TO SAY NATION IS IN RECESSION
PEOPLE BUYING LESS STUFF DECREASE IN FACTORY PRODUCTION GROWING UNEMPLOYMENT SLUMP IN PERSONAL INCOME AN UNHEALTHY STOCK MARKET.
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“AS SURE AS THE SPRING WILL FOLLOW THE WINTER,PROSPERITY AND ECONOMIC GROWTH WILL FOLLOW RECESSION.” -BO BENNETT