2008 Financial Turmoil

International Financial Management

2008 Financial Turmoil and Emerging Markets

http://www.nationofchange.org/sites/default/files/TheGreatRecession101413.jpeg

Student: Samira Alavi (3488425)

Nov 26, 2015

1- Executive Summary

Dear directors of Walmart Inc.

It is important for every company to investigate the worldwide effects of the financial crisis of 2008. As a Multinational Enterprise, Walmart Inc. needs to identify the recession’s signs in a country, and to prepare for it. Usually, an individual corporation is not able to improve or prevent any recessions. However, Government policies and their proper intervention can alleviate financial crises. This paper will summarize the 2008 financial Crisis, and will investigate the economic status of some other countries (particularly China) during the Great Recession period.

As Walmart Inc. is an American Multi National retail Enterprise with the large market in the US, UK, Mexico, Asia, etc., I hope this paper will help you:

* To prepare yourselves against another recession,

* To deal with the possible impact from current China economic crisis

* In your strategic decision making for the company

This paper is going to explain about how the crisis began in the United States. Lax regulation, low interest rates, and global imbalance caused the 2008 financial turmoil. The crisis negatively affected a large number of countries. Some countries’ economy such as Ukraine and Armenia contracted massively, while other countries, such as China mitigated the downturn significantly. The paper will also explain the effects of recession on economies, stocks, and currencies.

Moreover, solutions for alleviating the economic crisis will be explained. Finally, the recent recession of 2008 will be compared to the Great Depression in terms of government responses and policies.

I have tried to consider the US more than other countries because Walmart Inc. is an American company, and the...