Impacts of The European Economic Crisis Essay Example | Topics and Well Written Essays - 1000 words

Impacts of The European Economic Crisis - Essay Example Additionally, the EU recession caused an increase in the cost of doing business, since firms do not have access to credit from financial institutions. Because of this, firms will have to cut cost of investments such as research on investments. This will have a long term effect on firms and the countries involved because there is a loss in research which would have led to inventions of new technologies. Political crises have also been reported in countries affected by financial crisis, for example Greece. There have been cases of demonstrations, rioting and other social effects on the population. This is mainly attributed to the high rate of unemployed persons, high inflation and high prices of goods. This can be a long term effect because if the case of EU financial crisis is not dealt with, political and social instability will continue (Aghion & Howitt, 2006). The rate of depression among the residents of EU is also increasing because of the high rate of unemployment. This is becau se the population has lost hope for future income based on the crisis which hit their countries. This is mainly attached to the results of the crisis such as the increase in the number of poor people. This would be a long term effect because it is a continuous trend. Furthermore, other long term consequences are impacts on the populations’ health due to loss of jobs and lack of insurance cover. Research done by the Red Cross in some EU countries has shown that the EU crisis has made the governments too weak to provide important services to its citizens. This is because there is a high growth in the number of citizens demanding social services from the government. The gap between the poor and the rich is also increasing because more people...This essay is one of the best examples of comprehensive analysis of the impacts of the economic crisis on the economies of the EU countries. The EU crisis increased the rate of unemployment in most European countries. High number of workers outside the job lose their job skills because they are not practicing. The EU recession caused an increase in the cost of doing business, since firms do not have access to credit from financial institutions. Firms had to cut cost of investments such as research on investments. There is a loss in research which would have led to inventions of new technologies. Political crises have also been reported in countries affected by financial crisis, for example Greece. There have been cases of demonstrations, rioting and other social effects on the population. This is mainly attributed to the high rate of unemployed persons, high inflation and high prices of goods. This can be a long term effect because if the case of EU financial crisis is not dealt with, political and social instability will continue To solve the case of unemployment which has contributed to political instability, the EU should consider unemployment insurance. Unemployment insurance has been implemented in the United States and has done well. This act can be implemented in such a way that those who had been employed before losing their jobs qualify for unemployment insurance. The study also mentioned the loss of hope by firms and cuts on their investments due to loss of credit from financial institutions.

Destination Marketing Essay Example | Topics and Well Written Essays - 2750 words

Destination Marketing - Essay Example This tourist destination is balanced with primary, secondary and tertiary economic activities as well as a skilled workforce that immensely contributes to the growth of this city. The city itself is comprised of world-class infrastructure, abundant natural resources and ready access to global markets which makes it easily accessible to other markets. According to the Western Cape Business (2009), "the Western Cape forms a highly competitive investment destination and exporting platform and has shown growth rates consistently higher than the national average, contributes close to 15% of the country's GDP and is home to nearly 10% of its population." Business and tourism in the Western Cape are booming as a result of many factors which will be fully discussed in the second part of this analysis. According to the information obtained from the Western Cape Business Guide (2009), "the growth rates in the region have consistently outperformed those of the country as a whole and the region attracts 16% of South Africa's total foreign direct investment." The region also has vast natural resources that are attractive to both international as well as local tourists who take pride in savouring some of the finest resorts that offer the best environment to the holiday makers. Despite the realities presented by the economic slowdown, 2008 remained a buoyant year for the South African tourism industry (Vivian Warby 2009). Statistics obtained from an article entitled 'Tourist arrivals remain buoyant,' by the mentioned writer indicate that the tourism minister is somewhat satisfied with the rate of tourist arrivals in the country. The Minister said the latest available figures for foreign arrivals, for the first 10 months of 2008, showed a strong increase in arrivals of 5.4% from January to October (Vivian Warby 2009). Whilst the arrivals from North America were reported to be stable in the above article, the arrivals from Australasia were up by 6.3% and arrivals from Middle East were up by 5.9% (Vivian Warby 2009). However, there has been a slight decline in the tourist arrivals from Europe and Southern America and this can be attributed to some other factors such as the global economic decline which has not spared the other entire industries world wide. There are also some factors that affect the development of tourism in this destination though they may not yield a very heavy impact on the industry. Social factors are often seen as a threat to the development of the industry in this region where crime is rampant and the unsuspecting tourists are often targeted. Crime such as murder, drug abuse as well as robbery is very common in South Africa and this is a major impediment that often distracts the efforts to fully market the region to the international community. Indeed, the region has many attractions which can make a great change if fully utilised.2. "A SWOT analysis is a useful instrument for helping managers to identify internal strengths and weaknesses of a business and external opportunities and threats facing it," (Strydom J. p 31). Basically, SWOT stands for strengths (S), weaknesses (W) while on the other hand the external environmental factors are regarded as either opportunities (O) or threats (T). This analysis is very important to marketing managers as