Case Study 2001 Recession - 1278 Words

Ashley Alaniz ECON1301 Mr. Armstrong 06 November 2014 CASE STUDY: 2001 RECESSION ANALYSIS Beginning in March 2001, America soon fell into another recession that lasted eight months and ended in November of that same year. 2001 also happened to be the year 9/11 occurred which fueled the low confidence in the economic industry. The decline in services and employment after the attack made it inevitable that there is a recession underway. The recession of 2001 came during the introduction to the new electronic age when the technology industry was in full effect but little did the economy know that would play a major role in its downfall. The main factor that contributed to the recession was the collapse of the dotcom bubble, the rise of the technology industry and the new trend of internet websites. Many of these companies engaged in daring business practices with the hopes of dominating the market. Most used the practice of growth over profit, with the idea that if they built up their customer base, their profits would rise as well. As a result, the stock price of many high tech companies started to rise. This led to a lot of investors’ money going to any kind of high tech company, whether or not they were showing profits, and unfortunately many of these companies failed when the bubble finally burst. The loss of consumer faith in the tech industry also took a hit on earnings for technology ventures. The market also took a major downturn in the event of the terroristShow MoreRelatedJohn Moody Case Study Essay1318 Words   |  6 Pagesaround the Organization? Charlotte Wilson Chancellor University Abstract This paper explores a case study in which an organization went into a recession and had to reorganize everything. I will be explaining how recession works and what happens in a recession. I will also talk about planning and organization of a business. We will also explore what people have to do when in a recession. John Moody What Should be Done to Turn Around the Organization Often times people in this countryRead MoreA Review On Currency Devaluation1120 Words   |  5 Pagesthe late 1900’s after many decades of prosperity. Even the best intended responses to an economic crisis may or may not correct the situation or may even exacerbate it, as outlined in the Case Study by Gerber (2010) in Argentina. A review of currency devaluation will set the stage for an analysis of the case and Argentina’s response to their lengthy crisis. Currency devaluation is the deliberate lowering of the value of a county’s currency to combat trade imbalances, causing a county’s exportsRead MoreEssay Risk Management1556 Words   |  7 Pagesrisks and rewards undertaken with each investment. Risk focuses on the future and our ability to forecast that future. In turn, the ability to predict the future is largely dependent on what you’ve learned from the past. The best you can do is to study the record and draw on experience - your own and that of others. There is no easy scientific method that will guarantee all risks will be identified. Examine all sources of risk from the perspectivesRead MoreEssay on The Minimum Wage Should Be Increased1048 Words   |  5 Pagesdemand for labor. A recent study by Andreas Georgiadis (2008) supported this view. In the study, Georgiadis states â€Å"estimation results suggest that higher wage costs were more than offset by lower monitoring costs, and thus the overall evidence implies that the national minimum wage may have operated as an Efficiency Wage.† These policies also encourage employers to increase training investments. Economists Daron Acemoglu and Jà ¶rn†Steffen Pischke showed in their study (1999) that compression inRead MoreMinimum Wage Should Be Increased1057 Words   |  5 Pagesdemand for labor. A recent study by Andreas Georgiadis (2008) supported this view. In the study, Georgiadis states â€Å"estimation results suggest that higher wage costs were more than offset by lower monitoring costs, and thus the overall evidence implies that the national minimum wage may have operated as an Efficiency Wage.† These policies also encourage employers to increase training investments. Economists Daron Acemoglu and Jà ¶rn†Steffen Pischke showed in their study (1999) that compression in theRead MoreEssay about Welfare Reform: Promoting Independence and Self-Reliance1740 Words   |  7 PagesClinton proposed that states and communities should develop training programs to help people get the basic skills they need to remain a strong contestant in the job market. Many communities took the initiative and developed these programs. In most cases, the training programs have been successful, but there are still critics who argue against them. Those who stand in opposition claim that most state and employer programs focus on getting recipients quickly into jobs, rather than on providing trainingRead MoreU.S. Automobile Manufacturing in the Twenty-First Century1540 Words   |  7 Pagesautomobile industries as well of organizational practices have changed since the 20th century (Greer, 2001 ). Several developments such as global competition, advanced technology, and reengineering are more likely to affect human resource managers in the automobile industry (Greer, 2001, p. 68). Human Resource Issues Managers in the Automobile Industry Should Be Prepared For Based on the case study, global competition is an issue that human resource managers should be prepared for in the future. Read MoreBenefits Of Developing Countries Adopting Capital Controls During A Recession1529 Words   |  7 Pagesadopting capital controls during a recession, a case study on Malaysia’s success through the imposition of capital restriction during the 1998 Asia crisis and whether developing countries should adopt such capital restrictions. I. Costs of developing countries adopting capital controls Capital controls that restrict capital inflow will halt foreign financing for high-return investments, thus impeding the growth rates of the developing countries. During a recession, firms are affected from fundingRead MoreProblems and Questions817 Words   |  4 PagesI. Briefly explain the meaning of R-squared. A time series analysis of demand tends to result in a higher R-squared than one using cross-sectional data. Why do you think this is the case? R-squared measures the goodness of fit of a regression equation. A time series analysis of demand tends to result in a higher R-squared than one using cross-sectional data because data is being gathered at multiple periods of time as opposed to one period of time when using cross-sectional data. II. What isRead MoreBenefits of Congestion Charge in Tokyo1604 Words   |  7 Pageshousehold by prefecture was Tokyo with 0.497(Automobile Inspection Association, 2009). Nevertheless, there are chronic enormous traffic jams in Tokyo. Congestion charging systems have been considered because many suburbanites have gathered to work, study and make a purchase in the city. As a result of the consideration, the new systems have been practised in many cities, such as Oslo, Singapore and London, to resolve urban traffic congestion. At the end of the 20th century, the issue of whether or