Essay PreviewMore ↓
One of the multinational enterprises that being affected is Ford Motor Company, an automotive manufacturer, based in Dearborn, America which founded and incorporated by Henry Ford on 16th June, 1903 (Iloveindia.com, 2010; Anon., 2010).
Prior to this credit crunch issues, Ford is aggressively on investing in foreign countries and acquisition of other companies. It has begun its foreign investment after the first manufacturing plant build in the small town of Walkerville, Canada on August 17, 1904. (Novelguide.com, 2010), and has started to take over other companies, such as Mercury, Volvo (Sweden), Aston Martin (UK) and a 33% of Mazda (Japan), after the first acquisition of Lincoln Motor Company in 1925 (Answer.com, 2010; The Super Cars, 2010). Furthermore, in the mid-1980, Ford has diversified into financial services, namely Ford Motor Credit Company (FundingUniverse, 2004; Anon., 2010), and has soon become the country's second largest provider of diversified financial services, ranking only behind Citicorp after take over The Associates, a Dallas-based finance company in 1989 (FundingUniverse, 2004).
It has thus expanded the manufacturing, assembly and sales facilities in 34 countries (Freeonlineresearchpaper.com, 2009) which group in four principal regions – North America (parent country), South America, Europe and Asia Pacific (Ford Motor Company, 2008). In order to manage the huge organization smoothly, Ford seeks a balance between centralized leadership and decentralized implementation in its parent and host country (Bazak, et al., 1998.). Hence, the management in each region company has maintain a corporate jurisdiction, where, each had its own manufacturing processes , product development systems, suppliers, and other duplicative structures the regions along but still under the general supervision of the main office. (Ford Motor Company, 2008).
How to Cite this Page
"Credit Crunch." 123HelpMe.com. 02 Apr 2020
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Credit crunch is a normal phenomenon. Every economy faces it. It is a situation where “there is reduction is the availability of loans in the market in spite of the increase in interest rates”. (Turner, 2008) This results in a mismatch. It is a situation where “the interest rates don’t match with the credit availability as a result the relationship gets hampered”. (Turner, 2008) It is a situation which happens during recession. It is important to find out the reasons. Some of the reasons for it are • Decrease in bank capital: After a recession situation banks are not able to match the demand.... [tags: economy, ]
989 words (2.8 pages)
- Scottish independence. Sounds impressive, doesn’t it. It drives our minds to envisage a place of power and individuality. A new prospect. But how close to reality could this possibly be. Since independence has risen to the agenda, the desire for nationalism has reached fever pitch. For over 300 years Scotland has been part of Great Britain’s triumph, but currently in a time of economic hardship there is an exorbitant urge to break free. More and more people are starting to view autonomy as a panacea for all of Scotland’s economic dilemmas.... [tags: economics, resources, UK]
778 words (2.2 pages)
- When fair value accounting was first brought in by the International Accounting Standards Boards a few years ago, there were some concerns about the volatility it would bring, but in an optimistic economy it made company figures look good and the matter was left alone. However with a credit crunch in full swing, the matter has again been brought up as figures fall dramatically. Companies, regulators and politicians are all attacking the accountancy profession and accountants are taking the flak for banks making huge write downs in their books.... [tags: Financial Crisis, Accounting]
1427 words (4.1 pages)
- Credit crunch, the sudden reduction in the availability of liquidity (loan or credit) in the financial market that lead to higher rates of borrowing, has occurred at 9 August 2007 ((National Council for Voluntary Organisations, 2010; Investopedia ULC, 2010; Anon., 2009). This mainly due to the housing bubble in between 2000 to 2007 (Xu, 2009) that dampen the confidence of financial institutions to lend which thus increased the interest rate by 20%, make it nearly impossible for companies to borrow (Xu, 2009; Buzzle.com, 2010; Investopedia ULC, 2010).... [tags: Financial Crisis, Increased Interest Rates]
563 words (1.6 pages)
- The Economic Downturn: From Credit Crunch to Global Recession The economic policy was initially advanced by John Maynard Keynes through his revolutionary theory of 1964; economist joined the problem of macroeconomic stabilization to economic condition (Tyler, 2015). Initially, this appeared impractical and was abandoned by the policy manufacturers. The economic policy has undergone transformations to become associate degree economic stabilizer. The economic policy is employed to visualize the govt.... [tags: Monetary policy, Federal Reserve System]
1882 words (5.4 pages)
- The concept “credit crunch” was firstly introduced during the Great Depression of the 1990s. It refers to a reduction in the availability of loans and other types of credit at a given interest rate. Under a condition of credit crunch, banks are supposed to hold more capital than other time and become reluctant to lend with a fear of bankruptcies and defaults. In the 1990s, shortage of financial capital and low-quality borrowers forced the banks to reduce the loan supply. But that one of 2007 was more complicated than ever before.... [tags: Subprime mortgage crisis, Debt]
1887 words (5.4 pages)
- A credit crisis can also be identified as a shortage of available credit for businesses and consumers. Also known as the credit crunch, these credits may be in the form of personal loans, company loans or credit cards debts. In the past, the term credit crisis was only familiar to people that are involved in the financial sector, but since the occurrence of the 2007-2009 credit crisis in the United States, this term has became a common saying among all walks of life. The credit crisis has affected the lives of many people.... [tags: shortage, financial system, free market economy]
1704 words (4.9 pages)
- The credit crisis is referred to as economic downturn by credit squeeze, provision of doubtful debt and bankruptcies among others. (IMF, 1998) Credit crisis is known as a credit crunch, it is an extension of recession. According to the Ocaya (2012), Credit crisis is a sudden shortage of loan and tightened the requirement of economy and society needs of getting loan from financial institutions. In such situation, lender started keeps the cash and stop lending money because they are worry about a large of debtor bankrupt and mortgage defaults.... [tags: events that went wrong in the financial system]
1088 words (3.1 pages)
- The purpose of this essay is to explore the parallels between the underlying factors which led to the 1929 Wall Street Crash and the present Credit Crunch. The 1929 Wall Street crash was caused by weaknesses in the US economy. After WW1 the USA experienced a decade of economic growth generated by the levels of mass production and industrial growth during the war years. This along with the popular culture of success (the Jazz and party scene) made America appear a hugely prosperous country. However, the glitz and glamour of USA was superficial as very few reaped the benefits of this wealth.... [tags: Economics Economy]
1289 words (3.7 pages)
- ... In 1865: forward contracts become Standardize. In 1874: Chicago Produce Exchange was created. In 1919: CPE becomes the Chicago Mercantile Exchange. In 1925: First futures clearinghouse was created. In 1922: Futures Act for Grains. In 1936: Options on futures are banned. In 1955: Corn Products Refining Company decision made by the Supreme Court. Modern brief history of derivatives in the US: In 1972: International Monetary Market (IMM) for trading currency futures was created. In 1975: first interest rate futures contract create by CBOT.... [tags: international monetary market, credit]
824 words (2.4 pages)
Furthermore, on purpose to compete with its competitors, GM and Chrysler, Ford continuous modify its operation style – despite the introduction of Fordism 1914, which held that the sole contribution of employee was manual work in the form of repetitive assembly-line task (Zacharatos, et al., 2007; Anon., 2010), Ford has also one of the foremost of just-in-time system (Wilso, 1995), where insisted that raw materials and parts arrived just as they are needed (Daniels, Radebaugh & Sullivan, 2007).
Consequently, this innovation leadership and efficiency operation management has lead to significant grow of Ford. In 2006, Ford has 95 plants with 264,000 employees and produced about 6.6 million automobiles, which successfully sold out 6.59 million of it (AR07). Hence, it possess the second-ranked automaker in the US with a 17.5% market share, behind General Motors (24.6%) but ahead of Toyota (15.4%) and DaimlerChrysler (14.4%)