MGD426H5 Chapter 1-12: MGD
12 Apr 2018
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Economic expansion: demand for products and services increases, recession - negative gdp, organizations can trim costs and profit margins, offer new or different products. How to help to navigate through periods of economic expansion and recession. Mild inflation typically beneficial in an expanding economy. Pass increase costs to consumers, maintaining profit margins. Reasonable wage increases allows consumers to spend more, further fueling economic growth. High inflation difficult for both organizations and consumers. During some financial crises, suddenly the whole notion of credit becomes difficulties in access and borrow which is very typical. Sovereign debt crises cause financial organizations to be unable or unwilling to conduct normal lending operations. Large cash reserves can alleviate dependence on credit, but customers and suppliers may have difficulty accessing credit. Restricted access to credit, difficult to finance operations. Contagion effects retraction of amount or access to credit and cash to acquire for an individual and organizations to acquire.
