The 2007-10 financial crisis was one of the most severe crises in recent history. Many have compared it to The Great Depression of the 1930s in terms of its impact on the economy. Most economists still debate the causes of the recession. Still, it is widely accepted that certain factors did play a role in bringing about this recession. A recession was in the making for several years. Banks had started to give out loans to borrowers that were not creditworthy. These borrowers started reselling the mortgages on the secondary market. (Nicol 102). Another factor involved was that issuers paid off rating companies to give false ratings to securities. Collective greed also contributed to the mix as everyone wanted to make money. Consequently, mortgage owners increased loan volumes, and this was a terrible move for the economy.
Many companies were also involved in committing fraud as they sold risky securities to investors despite knowing the negative consequences. Politics was another reason politicians would often blackmail banks into providing loans to untrustworthy borrowers for personal gains. One of the main contributors to the cause was the failure of economists to foresee the crisis, as they believed that nationwide housing prices would not plunge at the same time. (Nicol 104).
Regulation of the credit companies will ensure that such meltdowns do not occur in the feature. A regulatory authority appointed by the federal government to oversee the activities of the mortgage companies would prevent this from happening again. Rating procedures need to be more stringent for firms, and they should be evaluated more thoroughly. Better economic indicators can be developed to anticipate a recession early, and changes could be made accordingly.
With the advancement of technology, the usage of artificial intelligence in everyday life is becoming more common by the day. AI has helped simplify a lot of processes by overcoming the manual work required and automating the whole process.
Many industries have adopted artificial intelligence to ease their operations. The healthcare industry has started using AI for mining data and studying patterns to come up with a more accurate diagnosis. (Shaban-Nejad, Michalowski and Buckeridge 53) The precision of robotic surgery is also given preference over contemporary techniques. The banking and financial sector also uses AI to develop new insurance plans according to the customer's needs.
AI has also replaced humans in processing loan applications. The automotive industry has started to use AI in autonomous cars, which has helped reduce the number of accidents. Self-driving vehicles also provide comfort to the user as they do not have to do anything. The entertainment industry also uses AI to observe and study user patterns, and this data is used to provide suggestions based on the user's activities. The increased usage of AI in these industries will create new competition amongst the firms as they will look to improve their processes by using AI more efficiently. The emphasis would also be placed on research & development as companies would look for new ways to integrate AI into their operations.
The development of platforms such as Uber and Airbnb has created a lot of benefits for the users. It has also led to more employment opportunities as little to no education is required for qualification. The sharing economy has prompted many people to quit their regular 9-5 jobs in favor of freelancing or part-time jobs. (Floodpage). Bureaucratic employment has also suffered a decline in volume as people look to explore other employment opportunities. With the employment opportunities created by the sharing economy, many people have suffered. This unrest is evident from taxi drivers' protests against Uber, as they believe that their jobs are in danger. So, they are looking for employment opportunities elsewhere.
There is ample opportunity for businesses in the sharing economy. Companies need to adapt to the sharing economy by being more dynamic and flexible in their approach by keeping an eye out on all the variable factors that can change quickly (Floodpage). Data analytics can also be used to gain a competitive advantage by evaluating customer patterns. They also need to create software that caters to the customers' demands and is user-friendly, as people would want something easier to use.
The US and China are the world's largest economies. With China's emergence as a global power, the two countries have not always seen eye to eye in political and economic factors. Conflicts between the two nations have escalated into a trade war. There are several reasons for the war and why it continues to this day. The US believes China is dishonest in its business practices and dealings (Chong and Li 186). They have also accused China of intellectual property theft. They claim this theft has resulted in significant losses for US companies. The US has imposed tariffs on China, and a trade deficit has been created. China was also accused of manipulating international trade by intentionally undervaluing its currency.
China believes that such accusations are baseless and that the US is only trying to stop China's growth as a country. The war has not been resolved yet as both sides continue to make allegations against one another. There are several potential outcomes for the war as the US can choose to raise their tariffs on Chinese goods, further restricting trade between the two. The trade war could also escalate to a complete boycott of work or a more dangerous conflict. China and the US could also sign a trade agreement with the help of mediators, such as the UN.
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Chong, Terence Tai Leung, and Xiaoyang Li. "Understanding The China-US Trade War:
Causes, Economic Impact, And The Worst-Case Scenario." Economic And Political Studies, vol 7, no. 2, 2019, pp. 185-202.
Floodpage, Sebastien. "The Future Of Work In The Sharing Economy: Utopia Or
Dystopia?". Medium, 2018, https://firstname.lastname@example.org/the-future-of-work-in-the-sharing-economy-utopia-or-dystopia-1e78d114120a. Accessed 16 Dec 2019
Nicol, Olivia. "No Body To Kick, No Soul To Damn: Responsibility And Accountability For
The Financial Crisis (2007–2010)". Journal Of Business Ethics, vol 151, no. 1, 2018, pp, 101-114.
Shaban-Nejad, Arash, Martin Michalowski, and David L. Buckeridge. "Health intelligence: How
artificial intelligence transforms population and personalized health." NPJ, vol 1, no. 1, 2018, pp.53.