Top Reasons of Economic failure
The global economy is referred to the economic status of the world’s countries or even to the global society. Economic status has been fragmented and become stagnant throughout globally. An abrupt fluctuation in global finances has been observed distinctively. Opulence reasons are there for depletion of the world’s economy. US and UK, the powerhouse of the economy is also running through a same pace of exhaustion. The foremost reason of the incompetency of the leading economy is wobbling out from certain norms and ethics.
The major fallout leads to failure
The major reason can be the Global corporation has been swaying away from the moral codes and standards. This is the root cause of falling down in economic condition. The modern era is governed by the gigantic multinational bodies and they are stepping into the shoes of capitalistic ideology. The big shot MNCs always seek for the best Return On Investment with least payment of Income tax. This is the major base of corruption. They try to make maximum profit for themselves. They are self motivated body who is solely and independent. MNC’s are the vital species of people who are self centered.
Aloofness of civil society
The utmost purpose is to maximize profit. The great adherence with the governing bodies like director, CEO and even the shareholder increases the greedy nature for grossing profit.The MNCs have developed the hypothesis of conceit. They give their best to the respective employees, they spend explicit time with their coworkers and enhance their selfishness. The self centered governing bodies is up to earning profits. They don’t have the spare time to ponder about the world economy. They don’t think about the failure of any country but emphasized on profitable growth. They are avid towards earning and luxuries. These cause the disdain of the civil society.
Modern outlook of the Multinational companies
The complete faith in capitalism is also one of the fallout of economic. Many MNC specially the IT companies have come up with a contemporary notion of outsourcing. This initiated saturation in the job market. Utmost assistance is outsourced from other countries, as a result of which lack of job rates has inflated than before. Even within the country they have started with a new concept eliminating well to do jobs with low wages for the poor people. They have the attitude of self regulation in the market place which turned out to be a disaster for the normal people they caused the total market unregulated.
Other reasons of failure
From the data of the previous year it has been concluded that the financial institutions are too big to fail and the outcome is, the rich would linger to be rich in our society. The concept of the capitalist has become a metaphor for the fall of the global economy. The inflation rate has increased which has a great impact on the global economy. The major negative impact is that the price of goods and commodities has increased which is unbearable for the normal people. Negligence of the ecosystem is also a cause of the harmful effect. Our natural capital has been depleted, many losses for loosing oil reserver and many others.
Widely speaking, many other minute causes are there for depletion. They treat the lands, water bodies, oils as natural capitals. Many political parties, constant warfare cause the lump sum amount in loss of money. To create an unhealthy economic condition, the Big shot multinational companies are responsible.