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Analyze The Changes That Occurred During The Financial Crisis Years Of 2008-2009

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1) Calls for protectionism are greater during share economic contraction than during boom periods as people want to protect jobs and unions meet with the management to see forth towards this issue. Also, when the economy is low a business would want the demand for their products to be high and will seek to face less competition, thus trade barriers are set up by governments to protect domestic business against the international market. Other ways to protect jobs or business would be a requirement for licensing or the absolute banning of import products in the countries.

2) This is so as since the World trade organization monitors the actions regarding trade laws in the countries, imposing of barriers may not be considered fair as per the …show more content…

For example, America provided subsidies to certain automobile industries. This step can be considered beneficial to company itself as they were able to compete with foreign markets and protect loss of jobs. However, this step would also mean that companies would use unethical ways of gaining subsidies such as shifting locations to places where resources are not available and the work process is not efficient. Further, the company can also use these subsidies to cover up on their bankruptcies and predict a false market reputation of being profitable when in fact they would be at the decline stage of the product life cycle. In other words, they might be on the verge of closing the business …show more content…

Other than this, business would look for help from the government in the form of subsidies. It is important for a business to be aware that subsidies are just a form of protection and should not be used by a business to hide its flaws or declining revenues. As with the changing economies and the emergence of new issues such as Health Care, the government would have to focus its financial need towards these and may not always be there to provide subsidies to each business. However, it would be advised that the government look at which business is going to be the most profitable in the coming years. The business that would be able to offer back to its community and be able to dominate the market, is the business that the government should grant the subsidies for

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“Americans think the U.S. economy benefits when big businesses or small businesses make a profit, although, by 84% to 64%, more consider small-business profits helpful”(Saad). Although those are some supporting facts for large businesses in America, they are too powerful and too rich. In the past and even in present time large companies generally hurt their consumers and workers. The main focus for businesses is to make money off their customers.

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October Crisis 1970s The War Measures Act was brought in to destroy the FLQ (Front de Liberation du Quebec) in the nineteen seventies which affected many French-Canadians living in Quebec especially people living near the city of Montreal. This group was originated mainly from Quebec because the French-Canadians felt that they were isolated from the rest of the society, they decided to make their own country which they could keep practicing their culture, speak their language and have their own laws. Pierre Trudeau was a great prime minister of Canada especially when he dealt with the October Crisis by bringing in the War Measures Act to wipe out the FLQ. The FLQ were determined to get sovereignty for Quebec by using any means necessary including

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Due to the increase in competition, these industries corrupted the government and took over small businesses,

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Small businesses used to be the backbone of this country now they are in great danger. Small businesses are highly affected by this global financial meltdown because they fall into great financial dept. Many things come into play in this situations. Most small businesses greatly depends on banks to fund their business because most small business owners are every day people looking for the American dream. Due to the financial dependency on the banks small businesses keep asking for more loans from the bank to support their needs for their business and the employees.

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These regulations were put in place to preserve domestic trade in products and currency. Making the United States self-sufficient and preventing other countries from utilizing its resources were the objectives. Protectionism persisted throughout the 20th century, but as the nation got increasingly involved in world events, it eventually started to fade. According to the economic theory of mercantilism, trade barriers should be put in place to limit imports because exports boost a country's wealth.

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The continuous imposition of trade barriers between two or more countries leads to a trade war between them. However, barriers on trade are not only heavily frowned upon because of their adverse effects on international relations but also due to them playing a

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