International Business Strategy: Analysis of Global Financial Crisis

This essay examines the impact of the 2007-2008 global financial crisis on international business strategies, focusing on the responses of central banks and multinational firms. It discusses the justification for central bank actions, methods for mitigating financial crisis issues, and reasons for the lack of capital flows in the decade following the crisis. The essay also analyzes Subaru's sales boom due to the weak Yen, evaluating the currency risks and the effectiveness of Subaru's decision to expand operations. The conclusion emphasizes the importance of maintaining effective strategies and developing production facilities to navigate economic challenges. Desklib provides this essay and other resources to aid students in their studies.

International business strategy

Introduction
The global financial crisis that had taken place in the year 2007-
2008 had a major impact on the major global organizations all over
the world. The flow of investments has been able to influence the
ways by which cross border based operations of the organizations
have taken place (Mensi et al., 2016).

Analysis of the financial crisis
that had taken place in 2007-2008
The World Economic Situation and the Prospects have been affected
in a huge manner by the improved economic performance of global
economy. The economy has been affected in a huge manner by the
increasing levels of risks and the humanitarian concerns as well
(Olson & Zoubi, 2017).

Justification of the activities that were
performed by the central banks
The steps that had been taken by the financial organizations were
mainly based on the reduction of short term loans. The central
banks had mainly tried to stock up the capital in order to maintain
the growth of the economy on a global basis. The lack of proper
returns that can be provided by the mortgage securities had been a
major reason behind the steps that had been implemented by the
central banks (Vazquez & Federico, 2015).

Ways by which financial crisis
based issues can be mitigated
The banks that operate in the US and Europe need to develop major
levels of understanding based on the ways by which insolvency
based issues had a major impact on the operations of different
organizations that operate on a global basis. The current bank
standards thereby need to be adjusted in an effective manner and
they also required high levels of adjustments (Weforum.org. 2019).

Reasons behind the lack of capital flows
after 10 years of global financial crisis
The rates of growth of the global economy had slowed down after
the year 2008. The lack of proper growth is mainly based on the
reset that had taken place after the global financial crisis had hit in
the year 2007. The crisis that had taken place in the global
economy had a long lasting impact on the growth that had been
depicted by different sectors or countries. The ability of the
countries to deal with high levels of economic crisis had reduced
due to the ways by which the organizations have tried to maintain
their positions in the industry (Weforum.org. 2019).

Actions implemented by a multinational
firm to limit the impact of future crisis
The levels of global expansion have plateaued in the last few years,
however, the easy monetary policies have been able to support the
growth of the economy on a global basis. The levels of trade based
tensions in different countries have however escalated in the last
few years. The organizations operating in the emerging economies
are facing some pressures in the financial markets. The
uncertainties that have been detected in the political situation is
considered to be an important factor that has an impact on
operations of different organizations (Vazquez & Federico, 2015).

Conclusion
The presentation can be concluded by
stating that different organizations that
are currently operating on a global basis
can implement different steps in order to
mitigate the risks that are related to the
slow growth of the economy.

Introduction
The analysis will be based on the case study related to the sales
boom of an organization named Subaru due to the weakness of Yen.
The fall of Yen that had been experienced due to the lack of proper
levels of US production. Subaru can be considered as a niche player
in global automobile industry (Bénétrix, Lane & Shambaugh, 2015).

Reasons behind the choice of
export production from Japan
Subaru can be considered to be a niche player in the automobile
industry of Japan. The organization has not expanded its operations
in the North American market like the other organizations in the
automobile industry. The strategy had been viewed as a major
liability by the other organizations that are a part of the country.
However, lack of strength of Yen had an impact on the sales of the
organization (Brunn et al., 2016).

Currency risks based on
Subaru’s strategy
The currency fall that had taken place in the country, however, this
activity is considered to be temporary in nature. The company can
thereby develop the operations only with the support that is offered
by its production facilities (Kenourgios & Dimitriou, 2015).

Sales and profits surge in
2014 and 2015
The profits and sales of Subaru had increased in the years 2014 and
2015 with the help of depreciation that has been experienced in the
value of Yen. The fall in currency levels has been able to play a
major role in the ways by which different operations of the
organization can be developed. The sales boom and price
advantage is considered to be an important part of the ways by
which the organizations are able to develop the levels of
profitability.