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Assignment on Financial Crisis - Ireland

   

Added on  2020-11-12

10 Pages3168 Words276 Views
Evolving From FinancialCrisis

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6

INTRODUCTIONFinancial crises is a concept that includes issues which are faced by a country ororganisation related to finance and monetary aspects. In this project report, financial crises ofIreland are discussed along with its evolution. Evolution is a process in which a countryovercomes from the crises. Various countries are compared with Ireland on bases of issues facedby them in order to discuss success and failures of these countries. Corporate finance theoriesand oral communication is also mentioned in this report which are applied in practical situations(Beirne and Fratzscher, 2013). MAIN BODYIreland is an island in Europe and is a part of European Union. In the year of 2008,financial crises hit down Irish economy which took a drastic turn towards nationwide recession.Financial crises of Ireland which is referred as Irish Financial Crises is considered as biggesteconomic crises in Europe of all the times. This crisis was followed by series of bankingscandals and slow economic growth. Problems which occurred from this event are countless, butfew most important can be named as unemployment, breakdown of Irish Stock Exchange, bankscandals, emigration and recession. These issues do not hit Ireland overnight but was a result ofseries of events took place over the time.. Financial environment of Ireland was way flexible dueto which they suffered financial crises. Economic environment of Ireland can be classified intotwo categories, that is micro and macro. Micro financial environment of Ireland is widelyaffected by industrialisation and innovations in business organisations of the countries. Macrofinancial environment of this nation is affected by macro factors such as political, economic,social, technological, legal and environmental.The major factor behind this problem was finance cycle of banks and banking scandals.In order to adopt the cheap credit strategies of United states, the economy of Ireland haddeveloped an easy money real estate bubble in which banks provided easy loans to buy and buildhouses. But after recession hit this economy, home prices collapsed and people failed to payback their loans and these imperilling debt holdings results in money deficit in whole of theeconomy. Another reason for this drastic recession was higher rates of British Banks which lendsmoney to Irish government. The period of 2008-2011 does not only affected Ireland but itbecame an international problem. Ireland is a part of European union and borrowed funds from1

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