Impact of the Global Recession on Financial and Economic Sustainability of Industrial Companies

Tatyana A. Khudyakova, Andrey V. Shmidt
European Research Studies Journal, Volume XXII, Issue 1, 143-157, 2019
DOI: 10.35808/ersj/1414

Abstract:

On the cusp of the 20th and 21st centuries it is extraordinary difficult to provide the stability of national economies due to globalisation effects. In fact, globalisation causes major interdependence between economies of different countries, therefore, their economic relations influence the world economic climate. Countries develop strong business ties with their counterparts; national economies are integrated due to such factors as division of labour, internationalisation of monetary funds, scientific and technological progress, increasing degree of national economies openness and free trade. As a result, economies of different countries integrate into the worldwide reproduction process. International economic integration indicates a high development level of global economy. However, since single countries become exposed and highly susceptible to changes in economies of other states, the external environment is implied to present a significant uncertainty for commercial operations in single countries. Hence, in order to provide a stable functioning of both individual businesses and national economies it is necessary to analyse macro- and microeconomic parameters carefully, identify consistent patterns and make relevant predictions aimed at preventive management. The present article will discuss these challenges.


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