UK view of international/regional/domestic financial crisis (Essay Sample)
Title: National Profile: UK Type of Service Writing Assignment Type Essay Discipline Political Science and Government Pagecount 5 Line Spacing Double Format MLA Number of sources 12 sources Paper details Make sure to give your OPINION not a DESCRIPTION. I need 12 sources and a page for the Bibliography. The Questions that need to be answered are 2 and 4 in essay form. Including an introduction and conclusion. Again everything needs to be opinion based off of facts, with IN TEXT sources. If you have any questions feel free to email me. Thanks in advance.source..
Economy is a critical issue in each nation. Economy can be defined to be the system that takes into account the production and distribution of good and services as well as consumption. In order to ascertain the rate of development a nation, one needs to copy the rates of economy as well as other aspects that constitutes to the development. In this research paper, one will be required to compare his or her nation in terms of the economy. This implies that one will be have to compile his or her national profile in order to tell the position of his or her nation. (The paper will mainly view the position of UK and compared to other nations)
UK view of international/regional/domestic financial crisis
To begin with, financial crisis can be defined to an unstable situation of extreme danger or difficulty that affect the rate under which nations can transact business. This implies that the exchange rates can be affected hence affect the way a nation can transact business with other nations. For instance, in the global market, the US dollar is the most preferred exchange by many nations. When financial crisis has being experienced, the rate under which the dollar will be exchanged to another currency will automatically differ. This financial lapse is likely to be reflected in my sectors of a nation.
Declining of equity prices of good and services in UK
After the 2007 financial crisis in US, almost all global regions felt the effects. The equity market prices for commodities and services fell down globally. This implies that the global capital flows was consequently affected whereby there was a depreciation in exchange rates. For instance, The Economic Commission for Europe (ECE) region, particularly the Eastern Europe had a substantial exposure to the foreign capital where by it declined the UKâ€™s market prices for goods and services for almost forty percent. This was contrary to the Economic and social commission for western Asia (ESCWA) region that exhibited developed. In fact, it may have been attributed by the implementation of the wide range of regulatory reforms after the 1997 financial crisis in Asia.
Generally, if a developed nation (a nation with high index rate of developed) transact business with a less developed nation, it is likely to experience some demerits like it market price for goods and services being lowered. This graph can assist in developing the sense as a matter of bearing comparisons of regional markets.
Regional market equity indices between 19th Sept 2008, and 16thApril 2009
Based on the provided market indices for the four regions, it clear that the must be a Foreign Direct Investment (FDI) under which the rate of business transaction will be transacted. This is likely to affect a developed country by lowering its market prices. Over the last decade, UK has experienced a drop in FDI, which has consequently triggered a fall in commodity prices.
Solution for UKâ€™s international/regional/domestic financial crisis
Just like any other nation in the globe, UK has responded to the economic crisis by cutting the interests rates, and accordingly injecting more liquidity into the financial system. Actually, the UK central bank has lowered the reserved requirements for its citizens; guaranties for bank deposits have ready provided. Similarly, the UK government has guaranteed loans for it citizens in order to facilitate advancing and recover the flow of credit. This method is found to be working effectively in the nations (UK); inflation is drastically replaced by deflation.
The current ethical/religious/cultural characteristic (the migration and immigration departments in UK)
With the imbalance trade rates, the developed nations such as UK do not see the need to transact much business with the developing nations owing to the lose they are getting from the business. This has made the developing nations to develop conflicts to an extent they tend to do the opposite of what the developed nation ascribes. F...
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