The real GDP is important indicator that helps to measure the economic fluctuation. The real GDP growth of Canada continued to drop from 2007 to 2009. The decline ended in 2010 with an increase of 1.0%. The rise of the real GDP growth represents that Canada passed the trough of economy and started to recovery. Other economic indicators in 2010 show same information which Canadian economy goes better.
This may have been for any number of reasons, however if this was cut simply to conserve cash it could result in slower growth in the long term. The cash and cash equivalents have grown by 348.2% which is alarming. This is an indication that the company is not investing their cash appropriately. This cash could have been invested in the aforementioned research and development to keep the business competitive in the long term. A few smaller points that are still worth mentioning are that the receivables have dropped 15%.
Perhaps many things could be blamed for this; economic growth is slow - it is an employer’s market that can chose to pay minimum wage for positions which are unsecure, government spending cuts, higher interest rates, perhaps even the eurozone crisis. According to a BBC reporter (BBC News, 2011), rents are going up, but because of the cap on housing benefits, recipients are unable to remain in their homes. This could result in recipients getting caught in the poverty trap; the money they save from rent is spent on transport costs to get to where your child goes to school, where the
In addition to the reduction in low-income housing, Kozol also argues that there was a severe shortage of employment positions that paid a living wage. He claims that since 1980 there had been a loss of two million jobs per year in the manufacturing
Americans are brought to believe that if they work hard, they will succeed in life. This is not the case though, due to the lack of education to earn a living wage for most families already in poverty. In 2005, thirty-seven million Americans, representing twelve-point-seven percent of the population, lived below the poverty line (Beegle 15). High school dropouts are more likely to be unemployed and earn a lower wages. Studies show that in 1993, the risk of poor children were two times higher for grade repetition and high school drop outs, one-point-three times more for parents reporting emotional or behavioral problems, and six-point-eight times for reported cases of child neglect (Beegle 17).
Poor sales performance and relatively high cost of sales have contributed to the profit margins to slip to one third of other hand tool manufacturers. It also comes clear that Robertson’s effort to provide products to every market segment lowers the overall efficiency of the company. By cutting non-marginal products from the company’s range of products, cost of sales has a potential of being reduced from 69% to 65% of sales. Further on, in case of an acquisition with Robertson, Monmouth Inc. could reduce Robertson’s sales force by implementing all sales functions into the existing hand tool lines. Sales and administrative expenses are expected to be lowered by 3 per cent (from 22% to 19%) if any duplications were removed.
According to Robert E. Scott and Christian Weller, “further increases in real short - term interest rates herald a slowdown.” Further evidence that suggests a recession was on the horizon was information released from the National Bureau of Economic Research that states, “A peak marks the end of an expansion and the beginning of a recession.”(The Business Cycle Peak, March 2001.) During an expansion, however the economy is experiencing normalcy, and during this period the economy is between a trough and peak. The National Bureau of Economic Research, however, defines a recession as, “ a significant decline in activity spread across the economy, lasting more than a few months, visible in industrial production, employment, real income and the wholesale-retail trade.” (the Business Cycle Peak.) Therefore, when a peak date was determined in March 2001 it marked the end of an expansion that began in March 1991, and hence the beginning of a recession. This marked the end of the longest economic expansion that lasted ten years of rising incomes and employment.
Canada, The United States of America, Australia, and all of Europe it can be argued are all in stage 4 of the DTM. Stage 4 typically results after a large economic development, which results in increased amounts of education , which leads to a decrease in population. During this stage of development, the country typically shows little to no population growth because the birth rate and death rate are nearly equal. This will result in a low fertility rate, of slightly over 2 , which is just enough to replace both the parents and the infant deaths. There is also a “greying population” meaning that the typical age of a citizen of that country is considerably older.
With these factors taken into consideration, a decrease in consumer expenditure would be a direct causation to a lowering of both organisations activity. For example, due to recession unemployment will rise as the companies can’t afford to pay employees, and therefor people as a whole have less money to spend, and so donating to causes such as Oxfam would come more unlikely as there will be less money revolving them. This could cause a cut on their government funding as more money will need to be invested to government funding for those out of employment. With a low flow of money inward to the company it means they wont afford the expenditure necessary to fund projects for helping those, therefore lowering the activity of the charity. The same rule may apply to Arsenal FC.
The global financial crisis of 2008 caused a massive economic downturn the following year, although growth and stability returned in 2010. Ongoing economic and social concerns include low wages, underemployment, inequitable income distribution, and few advancement in job opportunities have led for people to migrate out of the country, usually to the US, in look for job opportunities and higher wages. • China China has negative net migration rate of about 320 people moving out of the country this year. Up to the end of the 19th century China stood as a leading civilization, outpacing the rest of the world in the arts and sciences. The country was beset by civil unrest, major famines, military defeats, and foreign occupation that led to its fall.