Pros And Cons Of Carrefour

INTRODUCTION

When current market is mature, multinational enterprise would extend their business to other region. However, there is some other unpredictable factor could affect the further development business in those countries. The global financial crisis causes many multinational liquidities dropped, even the news constantly report the major companies cut production, stoppage, layoffs or even sell its brand of measure in order to deal with the current severe situation. Some recent rapid expansion in the global layout ferocious multinationals, was forced to do prepare divestment from overseas, hoping to return the funds as soon as possible, and implement of strategic contraction. Carrefour as European multinational enterprise which using

For example, Spain and Ireland in the past before the financial crisis has not only fiscal deficit there even have surplus, but due to the capital investment to the United Stage subprime mortgage market, coupled with its real estate bubble there. It ends up generate many financial bad debts, even the government backed bailout also could not permanently solve the issue.

There is a view that the debt crisis was caused by high welfare and high wages. European social model is the root causes of the debt crisis, but also to overcome the biggest obstacle to the debt crisis. Greece is the low level of development of a small country in southern Europe, but after joining the euro zone in spite of their condition, they blind in line to follow the Western European countries welfare standards, high standards of social welfare, have won the support of the people, but it cause deficit of the national treasury (Vranceanu,

European debt crisis has become a distinctive yellow alert, which cause many multinational enterprises faced challenges when running business. As affected by the crisis, companies slowed the recruitment, investment and expansion for business, economic activity decreased even more. For large multinational companies, the plight of the European market has resulted in the loss to them.

Since the debt crisis started from 2009, many multinational companies in Europe, the United States or Japan were affected directly with some action such as retrench staff or restructuring. Even some of the company’s business still maintain a good momentum of development, but in accordance with foreign headquarters need to adjust the overall deployment, there are still many enterprises were shut down individual business, and related businesses to sell or exit from the market (The impact of the financial crisis on the Euro Area, 2008). Furthermore, in order to cut down cost, Carrefour also sacked 10000 employees start from year of 2009, although it manage to gain profit increased by at the same time, it also caused workers strike due to low wages and job cuts (Ira,