TUGASAN 1 GISC1082 KEMELESETAN EKONOMI GLOBAL 2008-2009

Summary

This transcript presents a comprehensive analysis of the 2008-2009 global economic recession, exploring its causes, effects, and the steps taken to overcome it. The presentation highlights key factors such as the collapse of major financial institutions, the financial crisis in the United States, and the impact of rising oil prices. It also discusses the global ramifications, including the rise in unemployment, poverty, and inflation. Solutions offered include economic recovery plans, currency control, and efforts to boost domestic industries. Overall, the presentation provides a thorough understanding of the global economic downturn and the measures to mitigate its effects.

Takeaways

• 😀 The 2008-2009 global economic recession, also known as the global financial crisis (GFC), had widespread impacts on financial institutions and economies around the world.
• 😀 The global financial crisis was triggered by subprime lending, risky financial practices, and the collapse of major financial institutions, primarily in developed countries like the United States and Europe.
• 😀 The crisis led to rising oil and food prices, which worsened global economic conditions, increasing poverty and unemployment.
• 😀 The United States' economic collapse, marked by bank failures like Lehman Brothers, was a major contributor to the global recession, with significant bailouts provided by the US government to stabilize the economy.
• 😀 The economic downturn was exacerbated by poor financial policies, including excessive debt accumulation and weakening liquidity in financial institutions, leading to widespread layoffs and bankruptcies.
• 😀 A key factor in the recession was the failure of liberal economic policies, which left many countries vulnerable to economic shocks and undermined the global financial system.
• 😀 The global crisis led to severe repercussions for global trade, including a decrease in export demand, affecting manufacturing sectors like textiles and electronics, especially in countries like Malaysia.
• 😀 The global recession caused major disruptions in the tourism and real estate sectors, with tourism activities declining sharply due to reduced disposable income and higher financial instability.
• 😀 Measures taken to combat the economic crisis included boosting domestic production, seeking alternative export markets, reducing reliance on foreign workers, and tightening monetary policies.
• 😀 The financial crisis also led to global inflation, which required governments to implement strategies such as reducing imports and stimulating local consumption, as well as ensuring the stability of local currencies.

Q & A

What was the primary cause of the 2008-2009 global economic recession?

The primary cause of the global economic recession in 2008-2009 was the collapse of major financial institutions, particularly banks and investment firms, which were affected by excessive credit risk and subprime mortgages.

What were the main consequences of the global financial crisis in 2008?

The main consequences included skyrocketing oil and food prices, increased unemployment, financial market instability, and the bankruptcy of several major institutions, such as Lehman Brothers, which caused a global economic downturn.

How did the 2008 financial crisis affect the housing market?

The housing market was severely affected as banks became reluctant to offer loans, leading to a rise in foreclosures. Many people could not continue paying their mortgages, causing a drop in property prices and a collapse in the real estate sector.

What role did the U.S. government play in addressing the crisis?

The U.S. government responded by injecting bailout funds into failing financial institutions to prevent a total collapse. The government also implemented economic recovery plans, such as a $700 billion stimulus package to stabilize the economy.

How did the economic downturn impact global trade?

Global trade was negatively impacted by the economic downturn, as demand for exports decreased, causing a decline in international transactions and affecting industries such as electronics and textiles in countries like Malaysia.

What was the effect of inflation during the 2008 financial crisis?

Inflation reached its peak in 2008, leading to higher costs of goods and services, including food and energy, which further strained the economies of many countries, especially those heavily reliant on imported goods.

What were some steps taken by governments to mitigate the economic downturn?

Governments took several steps, such as increasing production of export commodities, controlling currency exchange rates, encouraging local consumption, and reducing reliance on imported goods. These efforts were aimed at stimulating economic growth and reducing dependency on global financial markets.

How did the financial crisis affect unemployment rates?

The crisis led to a sharp increase in unemployment rates globally, as many companies went bankrupt or scaled down operations, and financial institutions cut jobs to cope with the economic instability.

What was the impact of the 2008 crisis on tourism in affected countries?

Tourism sectors in many countries were severely impacted, as fewer tourists traveled due to reduced disposable incomes and economic uncertainty. This led to decreased revenue in industries reliant on tourism, such as hotels and travel agencies.

What lessons were learned from the 2008-2009 global financial crisis?

The crisis highlighted the need for better regulation of financial institutions, increased transparency in lending practices, and the importance of economic diversification to prevent over-reliance on specific industries or global markets.