impact of recession on it sector
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Transcript of impact of recession on it sector
IN IT SECTOR
Road map
• What is recession?• Causes of recession• How to know recession?• Impact of recession• How to come out of recession.
WHAT IS RECESSION?
Causes of recession
• Currency crisis• Energy Crisis• Under consumption• Over production• Financial crisis
CURRENCY CRISIS
ENERGY CRISIS
UNDER CONSUMPTION
OVER PRODUCTION
FINANCIAL CRISIS
IMPACT OF RECESSION ON IT SECTOR
The impact of Recession is unpredictable. The main effect of recession is in IT sector and is mainly related to the job loss and unemployment
How to come out of recession?
Corrective Steps Should betaken to come out of Recession
Important Point: Today, it is a market Economy
Producers;Can produce and
sell at their prices
Consumers;Can decide to
buy or not;
Government has 2 plans
Fiscal Policies
(By Govt.)
Monetary Policies(By RBI)
Government influences the economy by changing howit (Government) spends and collects money
RBI manipulates the available supply of money in the country
Fiscal Policies
Government influences the economy by changing how it (Government) spends and collects money
1] Tax cuts for businesses or for individuals
2] More Spending by Govt. to create jobs
3] Automatic fiscal policy; Unemployment Insurance
More moneyavailable forspending
Individuals getsalary and spendmoney
Some income tounemployed people to spend
Demand picksup; Market can recover;
MonetaryPolicies
Government manipulates the available supply of money in the country
1] Reduce reserve ratio
2] Lower the interest rates
3] Use its own reserved money to buy Govt. bonds
More moneyavailable for bankto give loans
Individuals takemore loan
It becomes anincome to Govt.to inject moneyinto the market
Demand picksup; Market can recover;
BIBLIOGRAPHY
• www.wikipedia.com• www.authorstream.com• www.slideshare.com
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