Global Recession And Its Impact On Organizations Essay

Global Recession And Its Impact On Organizations - Essay Example Motor vehicle industry was one of the worst hit by the crisis. Some firms such as the General Motors in the US had to shut down some of its branches. According to Dullien, Herr, and Kellermann (2009), Organizations have been affected heavily by the world economic crisis. This has seen the organizations lose key players in the industry. Some firms have been forced to close down due to reduced sales. Epstein, Grabel, and Jomo (2004) give an example is the motor industry sector that recorded a decrease in sales compelling some firms to minimize branches. This other than low-profit margins result from the economic crisis which boils down to individuals rather than organizations alone. The effects of economic recession extended all over the world with the most vulnerable being the gas exporters to the United States. According to Flassbeck and Spiecker (2007), this owes to reduced trade levels such as real estate and gas and banking sector. The banks in the US decided to reduce loans available for individuals due to lack of confidence in the assets that they own. According to Ratha, and Xu (2007), what followed was panic and mistrust development in organizations. G-20 (2009) argues that the governments of affected states have made effort in making sure that corrective mechanisms are implemented with mitigation measures put in place KEA (2006) has details of organizations worst hit by the recession includes the large incorporate houses in the United Arabs Emirates where real estate sector became a victim of the circumstances. Construction and value chain were sectors that were no exemption from the crisis. ECA and APF (2008) demonstrate that tourism and hospitality recorded a significant level of reduced customers as compared to the previous years.