European Business

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All these factors had a negative effect on the labour market. thus employment growth rate came to zero on the quarter to quarter basis (E.C. “Economic slowdown hits labor market”).The slowdown in the labour market clearly indicates that the manufacturing sector got most affected and the effect of the financial crisis is clearly visible on the trade sectors. Thus the risk related to businesses has increased by many folds, but there are many sectors which have shown sign of opportunity even in such gloomy economical environment, one of such sector is the tourism sector. Just before the onset of the global economic recession, this sector was booming in EU, and even in the present state, it has possibilities to maintain sustainable growth.The most important question at present is that what are the opportunities and risks which business is facing at present? From the data released by different government agencies around the world, it has been found the biggest threat at present is the financial crisis. In the US lots to people have lost their job and the ones who still managed to retain their jobs are facing cut in their salaries. Thus they are left with very little disposable income. At present demand for consumer durables and for FMCG products has gone down. companies have to cut their production rate and to boost demand they have to compromise with their profit margin. Condition is equally bad for service industries, as they too are facing a reduction in demand. Almost all the sectors are facing sharp competition within their own sector and also with other industries.The impact of global crisis is not that harsh on developing countries like India Indonesia who still managed to have moderate economical growth. The reason behind is simple, as their economy is not too dependent on export, unlike Japan and few other Southeast Asian countries, hence the effect of the global crisis is mild on them. In the developing nation per capita income is increasing so people’s living standard is also going up. Demand still being high, made the center of attraction for all major multinational companies. So these markets provide great opportunities to both the market giant multinational companies as well as to the new entrants (Bloomberg press. “Asia, EU Can Weather Economic Slowdown, Officials Say”).