Effects of the Credit Crunch

The credit crunch has severely affected several sectors of the economy not only in the United States of America but other regions of the world as well. The United Kingdom is the second worst affected country after the United States of America where many companies have either gone bankrupt or had to be rescued through government funding (Ambachtshee, Beatty and Booth 2008). Dissertation Plans

The credit crunch has created a situation where organisations in various sectors find it quite difficult to obtain finances from banks and financial institutions to run operations smoothly. As the credit crunch has affected consumers, retail companies are facing the worst sales levels and are also running very low on profits or are facing huge losses due to which major cutbacks and downsizing steps have been taken (Wei and Tong 2009). The organisations functioning in United Kingdom and other parts of Europe are quite heavily reliant on international trade with the United States and any problems in the U.S. economy directly impact the U.K and European economies (Copsey and Haughton 2009). The financial crisis has deeply impacted both the private and public sector as organisations are witnessing huge losses and nearing bankruptcy and have to take drastic measures such as downsizing, cost cuts, salary decrements, closure of branches and departments or even suspension of business and operations (Gokhale 2008). Dissertation Plans