Economic

Performance of Tesco in Times of Recession

The policies to address the effects of the financial crisis can be categorized into three basic principles. The first principle calls for corporative actions by the nations. The current crisis is on the path to exceed the crisis of oil in depth and extent and so the time calls for all the nations to come together and face the existing challenges. The second principle takes into account the actions that are suited to various economic phases. The third principle asks to take a comprehensive approach over horizons of time. The specific measures include measures that aim to support employment. In this measure, the emphasis is put on emergency employment opportunities that will create new jobs and provide a safety net for casual workers. The supports that can be provided by the government are increasing the level of subsidies or unemployment benefits. The government can also lend its hand to support re-employment and provide opportunities that will help to develop the vocational skills of the labor force. The support system should also include persons with disabilities. Among the financial measures, the policies include promoting the financial intermediary services for smooth functioning, to bring the small and medium sized enterprises under the financial support systems, the support system should also consider the large and medium-sized companies. The stock market needs the support of the government financially (Government of Japan, 2009, p. 9). The countries which are rich in resources experienced rapid growth in the periods prior to the crisis. It has been argued that these countries seemed to suffer the most as a result of the financial crisis due to deterioration in trade. There was a shrink in global demand and the prices of most commodities took the declining curve. The countries dependent on exports, as a result, was losing the precious foreign exchange.

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