Conclusion

The globalization of a failure US banking regulation system triggered a serious

down turn in the global economy. (Marcela.200-). and that in turn affected the
business industries world widely. Because after global crisis the foreign business
industries were forced to spend less on their daily operation such as decreasing
recruitments and cutting salary. So company’s efficiency of generating profit went
down as effective labor strength was decreased. The failure of global financial
market affected the whole industrial body from head to toe. As many big names
such AIG, Bear Sterns and other gone insolvent and many Industries who had
invested in such securities tied with real state which were carelessly regulated by
the US regulators. When such securities (CDS, ABS, and CDO’s) went down the big
business industries went down also with them. And their overall operation got
affected negatively. (Craig.2008)

Recommendation
1. As this was discussed in the 40 th annual meeting in WEF as well that the US
government should focus on regulation and keep their strict control on the
financial industries to minimize the speculation and downside of such
monetary policies and simultaneously companies and business industries
should focus on good and talented employees Which in result can improve
their profitability and economic growth as well.

2. The business industries should also expand their business structure in

under developed countries such as India, china, Brazil and Russia on a big
panel. This action allows industries to keep a competitive advantage as well
as keep financial securities. Because it was seen that during crisis 2007
many of US industries were able to hold a steady profit margin when their
local market went down. The reason is in many under developed countries
 as I discussed above in my report have less investment banking and focus
on operation banking. They do not relay totally on US regulation system or
they work according to their own way. So if the local market goes down
the industry can manage its profitability with the business from these
countries.

3. During recession as many of business industries were laying off their

employees and unemployment was rising. So foreign industries can use this
time for recruiting Indian IIT graduated at lower salary scale because many
foreign companies are taking their business off from IT companies which in
turn causing IT section in loss in India.(CNBC.2008).