New business environment and business recession

1. Group:- 8
Submitted to :-
Gayatri Vyas
Name of the member :-
1.Ganjeliya baldev(9)
2.Purohit suresh(44)
3.Pandya vishal(24)
4.Nakum sanjay(21)

2. Definition
The combination of internal and external factors that influence a company's
operating situation. The business environment can include factors such as:
clients and suppliers; its competition and owners; improvements in technology;
laws and government activities; and market, social and economic trends.

6. Legal:
Competition law
Employment law
Health and safety
Product safety

7.  Political:
Government stability
Taxation policy
Foreign trade regulations
Social welfare policies

8.  Economic factors:
Business cycles
GNP trends
Interest rates
Money supply
Inflation
Unemployment
Disposable income

9. Sociocultural factors:
Population demographics
Income distribution
Social mobility
Lifestyle changes
Attitudes to work and leisure
Consumerism
Levels of education

10. Technological:
Government spending on research
Government and industry focus on
technological effort
New discoveries/developments
Speed of technology transfer
Rates of obsolescence

11. Environmental:
Environmental protection laws
Waste disposal
Energy consumption

12. Definition
A global recession is recession that affects many countries around the world—that
is, a period of global economic slowdown or declining economic output.
The International Monetary Fund defines a global recession as "a decline in annual
per- capita real World GDP (purchasing power parity weighted).
worsening for one or more of the seven other global macroeconomic indicators:
Industrial production, trade, capital flows, oil consumption, unemployment rate,
per - capita investment, and per- capita consumption".
since World War II there were only four global recessions (in 1975, 1982, 1991 and 2009),
all of them only lasting a year (although the 1991 recession would have lasted until 1993
if the IMF had used normal exchange rate weighted per- capita real World GDP rather
than the purchasing power parity weighted per- capita real World GDP).
The 2009 global recession, also known as the Great Recession, was by far the worst of the
four postwar recessions, both in terms of the number of countries affected and the
decline in real World GDP per capita.
Before April 2009, the IMF argued that a global annual real GDP growth rate of 3.0
percent or less was "equivalent to a global recession".By this measure, there were six
global recessions since 1970: 1974–75,1980–83, 1990–93, 1998, 2001–02, and 2008–09.

13. Informally, a national recession is a period of declining economic output.
In a 1974 New York Times article, Julius Shiskin suggested several rules of thumb to
identify a recession, which included two successive quarterly declines in gross domestic
product (GDP), a measure of the nation's output.
In the United States, the National Bureau of Economic Research (NBER) is regarded as
the authority which identifies a recession and which takes into account several measures
in addition to GDP growth before making an assessment. In many developed nations
(but not the United States), the two-quarter rule is also used for identifying a recession.
Whereas a national recession is identified by two quarters of decline, defining a global
recession is more difficult, because a Developing country is expected to have a higher
GDP growth than a Developed country.
According to the IMF, the real GDP growth of the emerging and developing countries is
on an uptrend and that of advanced economies is on a downtrend since late 1980s.
The world growth is projected to slow from 5% in 2007 to 3.75% in 2008 and to just over
2% in 2009. Downward revisions in GDP growth vary across regions.
Among the most affected are commodity exporters, and countries with acute external
financing and liquidity problems. Countries in East Asia (including China) have suffered
smaller declines because their financial situations are more robust. They have benefited
from falling commodity prices and they have initiated a shift toward macroeconomic
policy easing.

14. Main two factors are create global recession:-
(1) Macro level factors
(2) Micro level factors
Macro level factors:-
Growth
Employment
Livelihoods
Impact on Policy
Micro level factors:-
Decreased Demand and Consumption
Price Instability and Rising Costs
Household Level Impacts
Increased Competition within a Shrinking Market
Alleviating the Impact of Job Losses
Scaling Up Social Welfare Programmes
Expanding Access to Basic Social Services

15. Policies to avoid a Recession:-
Cutting Interest Rates.
Preventing Home repossessions.
Expansionary Fiscal Policy.
Devaluation.
Quantitative Easing.
Higher Inflation Target.