Global Business Environment - the Banking Sector of Pakistan vs Essay

Global Business Environment - the Banking Sector of Pakistan vs. Uk&Greece - Essay Example1.2 The Crisis Chain The global pecuniary crisis brought to the highest degree a tremendous and dramatic turn around in the banking field across the man and there were hardly any economies that remained unaffected by the equivalent. Not just the banking sector, but the sub-prime mortgage crisis brought about a chain of crisis causing a high velocity downfall in real estate, argument exchanges, and insurance companies as well many big names fell apart, bail out packages were essential in order to reduce the impact, inflation went sky rocketing, and at the end of the chain, consumers lost dozens and loads of money. Krugman (2009) states that a situation came where economists describe that there were empty houses in the US, and homeless people outside the same showing the reduced purchasing power, and high prices of land and mortgage. Economists call the year 2008 as the Global fiscal Ear thquake. This era was known as the most depressive economic scenario since after the Great Depression of the premature 30s. This assignment aims at discussing and comparing how the environmental and macroeconomic variables in countries like UK, Greece, and Pakistan have affected the banking sector in these respective regions. ... It shows the linkage of financial markets with government, the employment (or unemployment), organizations and corporate, households, and the commodities markets. there is strong co-relation between these entities and any jolt, gouge lead to a drastic effect on all the others. 2. digest of Banking Sector in UK 2.1 PLEST Analysis Paulson (2011) states that the global financial earthquake of 2008 ripped apart the exceptionally high growth of the previous years, closing the colossal names of the financial sector close to bankruptcy. In terms of the banking sector in the UK, the banks are kind of politically and legally secured as UK is recognized as the pioneer of financial system globally. The banking sector is too technologically fairly sound. The 2008 decline was primarily witnessed due to the drastic changes in the economic and social habits and norms of the population. primarily a sub-set of the sub-prime mortgage crisis that initiated the panic, UKs economy took a downturn. The primary cause of this being the over -spending habits that had enter in the norms of the society, which was in turn, was caused by the easy presence and availability of the credit cards. Lewis (2011) states that most of the consumers had over spend their budgets in expectation of their future cash flows, which did not happen as bankruptcy became a special K feature, employees were laid off in one go, salary, were reduced, and big names like JP Morgan, Lehman Brothers, etc. went off the hook. organization ultimately intervened with bail out packages to assist in the survival of the financial backbone of the economy. 2.2 Macroeconomic Indicators Th ere are three primary macroeconomic