What is the impact of the global financial crisis?

The

global financial crisis creates a domino effect, which means that one problem is often associated with another. For example, reduced consumer expenses can lead to increased unemployment. Another example of one impact of the global financial crisis leading to another is the limited availability of the loan, which forces people to rely on cash, which are less due to a significant decline in the stock market.

Individuals, businesses and government are strongly relying on loan. The global financial crisis can reduce the availability of the loan to all parties and push them into a cash -based environment. Although some credit may still be available, qualifications for access to it tend to become stricter, and in many cases loans are also increasing. Although there is no warranty that it will make it more accessible, it means that Savings will not grow so much due to lower interest rates. This means that people who have money on savings accounts, deposit (CDS) and government bonds earn money for these InvesStice much less than at a better economic era.

The

global financial crisis reduces the flow of money in other ways, especially consumer expenditure. People generally buy less during an economic decline that further decreases into enterprises that already have less ability to access the loan. In addition, investors may become Scottish and do not want to invest in companies that are fighting, which may have a negative impact on the stock market. When the stock market drops, people who have made these investments lose part of their wealth.

At some point, many companies begin to realize that their survival depends on the cost of reducing and work is usually one of the business' largest expenses. This means that it is necessary to eliminate jobs, often on a wide scale. Other businesses simply find that they cannot survive the impact of the global financial crisis and must be closed. This results in a loss of more workOvní spots and an increase in the total unemployment rate.

It is important to realize that charity organizations are also businesses and people often donate less during the financial crisis. In many cases, this threatens or eliminates people's approach to resources that they are desperate, including food, clean water and housing.

smaller economies may experience the impact of the global financial crisis more seriously. These nations are often balanced with limited earnings potential. When larger countries reduce their demand, these countries, which can already have a high level of poverty, see most of their civic struggle to survive. This can cause a wide range of political problems such as government protests and Evan Civil War.