European Business Research Paper Example | Topics and Well Written Essays - 2000 words - 1

European Business - Research Paper Example As a result, various important countries were trapped in a deflationary ensnare. The impact was visible almost in every sector of the global economy. One of the major causes revealed by the evidences is the inefficiency of the financial markets in controlling the liquidity ratio with over liberalised monetary policies in most of the developed countries. Notably, the impact was strongest in terms of international trade and investment (UNCTAD, 2009). Considering the fact, this report will emphasise on the current global economic situation. The impact of the current trends will be further analysed with the example of a multinational company, Nissan in terms of international trade and investment. ... The financial measures undertaken by the governments of developed countries have significantly contributed to the financial stability of the world economy. However, the structural limitations faced by these economies are likely to cause risks in relation to the debt, real estate and credit markets along with other factors which in turn can affect the overall economic stability. Lower GDP growth rate, widening fiscal deficit, political conflict, and other similar issues can be observed as the most effective trends in the current economic situation concerning the developed countries (UNCTAD, 2010). Surprisingly, the developing countries were recorded to be least effected by the recent economic downturn, gaining an extra advantage of sovereignty in the world economy. Comparatively well-structured fiscal policies and a strong growth of GDP have evidently signified the developing countries as the major drivers of economic upturn in the current scenario. Contradicting to the developed econ omies, the growth trends of the developing nations signify ample opportunities for international trade and investment. However, the economies can be witnessed to possess few limitations in terms of their dependency on the developed countries. Moreover, the developing economies are also recorded to face the challenges in terms of structural issues which depict a moderate growth prospect on the future context (Department for Business Innovation & Skills, 2011). These trends can also be witnessed in the context of EU economies. Notably, the member states of EU comprises of both developed as well as developing economies. This depicts that the European market is likely to face the risks of weak and moderate growth along with various challenges in terms of fiscal