The Impact of Global Financial Crisis on the United Kingdom Essay
This report will examine the affects of the global financial crisis, which was a result of the collapse of the sub-prime mortgage market in the United States, on the UK economy. First of all, it will look at the background of the global financial crisis. Secondly, this paper will analyses why the UK economy has been influenced by the global financial crisis, what effects of the financial crisis on the United Kingdom have been, especially labour market. Lastly, brief conclusions will be drawn and a number of recommendations will be made.
Financial crisis is a sharp deterioration of a group of financial indicators, such as business and financial …show more content…
In addition, many countries, including the United Kingdom, were deeply and quickly influenced by the global financial crisis of 2007-2008 because of globalisation. These days, there is a close relationship between the UK economy and other countries trade. The search for new markets and inputs encourages firms to become bigger and to operate in many countries, becoming multinational firms (Abercrombie, et al. 2000, p. 29). Obviously, More and more firms cooperate with other countries companies and imported goods from them, such as raw materials, products, services etc, so that they are more likely to reduce the cost, make a sizable profit, and survive from fierce competitions. However, it is no doubt that companies are more likely to be affected, when their counterpart are involving in a bad situation. That is why the UK economy started to slow down following the bursting of the housing bubble in the United States.
The global financial crisis of 2007-2008 produced sudden changes in some fields in the United Kingdom, such as the economy, the labour market and daily life in Britain. As can be seen from this paper, the global financial crisis of 2007-2008 has not only affected business, but also has impacted the individuals in the United Kingdom.
* The UK economy
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