MODERN BUSINESS in Comparative Perspective (EXAM PREPARATION) Essay

MODERN BUSINESS in Comparative Perspective (EXAM PREPARATION) - Essay Example This was happened between the 17th and 18th century In the late 17th century, the United Kingdom (UK) began the industrial revolution. Before industrialization, the people used to live in the rural area practicing farming. However, the countries had distinctive advantage in the manufacturing industry, especially in textile industry. Moreover, The development of the steam engine played important roles in ensuring an improvement in the banking industry. However, the UK banking industrywas lack of intermediation. In the early 18th century, the United States (US) began the industrial revolution. After the civil war, the US industry was changed drastically. The railroads distributed goods and products everywhere; therefore, the production level was increased. Before industrialization, the organizational structure was under hierarchy structure. However, when the population in the cities increased after revolution, the country was decreased between rich and poor. Moreover, increasing in US industries improved in the banking industry. The US banking industry supported many industries along with introducing the stock markets. Both early-industrialized countries focused on invention and innovation. The UK and US were creatively used in the textile and automotive industry with adequate support of the financial institutions where started growth of economies. Moreover, the manufacturing industries were set in these countries that marked the growth in the market share. Late or newly, industrialization refers to those countries whose level of economic development is between the developing and the first world classifications (Wyatt, 2009).  This means that these countries have moved from the agriculture based economy to the industrialized urban economy. Some of the countries that are industrialized include Germany, China, and Japan. The development of the railway network fastened the transportation of goods from one place to another. In addition,

Details of the European Crisis Essay Example | Topics and Well Written Essays - 750 words

Details of the European Crisis - Essay Example The critical issues that shaped the crisis include; competitive weakness, weak and actual growth and large debt-to-GDP ratios. Other important issues are liquidation of banks and sovereigns, considerable liability stocks both in private, government and non-private sectors (Arestis & Sawyer, 2012). The crisis was complicated making it difficult for European nations to refinance or repay the debts of their governments without the intervention of a third party such as IMF or ECB. In addition, the banks within the Euro zone were undercapitalized and, as a result, were influenced by debt problems and liquidity. Due to the crisis, the rate of economic growth was slow in the entire region. Similarly, the economic growth was unequally distributed across the member states (Lynn, 2011). The governments of the nations that were ruthlessly affected coordinated with "the troika". The troika is a committee formed by three international organizations namely, the European Central Bank, the European Commission, and the International Monetary Fund. Virtually, in 1992 the EU signed the Maastricht Treaty. The agreement regulated their debt levels and the limit deficit spending. Nonetheless, at the onset of the year 2000, some of the member states defied the criteria of the treaty. These countries instead decided to analyze government revenues to minimize their deficit or debts. Therefore, evading the desired practice and not being able to follow the international standards (Arestis & Sawyer, 2012). This gave the sovereigns a chance to mask their deficit and debt levels by embracing a combination of approaches such as off-balance-sheet transactions, inconsistent accounting and the use of complex credit derivatives, as well as currency structures. The low-interest rates resulted to excessive government spending and borrowing primarily in member states like Greece during the decade lead. Since