The Impact of the Global Economic Crisis on Organisations in Oil-Producing Countries: A Case Study of SABIC - Dissertation Example

The aim of the project will be to support the hypothesis that the roles firms play during economic downturns should be analysed in the same way as economic variables like inflation, interest rates, employment, exchange rates and exports and imports. A comparison will then be made to ascertain the reasons for variations in any of results obtained as the price of crude oil varies. Analysis of liquidity, solvency, asset management and leveraging results will form part of this process. The research will provide undisputable evidence to support the proposed hypothesis and finally convince all stakeholders of the academic and economic relevance of the research, as well as providing foundation for future researchers in different areas of work.

Thesis Statement The microeconomic performance of firms within economies during any global crisis should be analyzed and used in conjunction with the macroeconomic indicators, to enable analysts and other experts to have more comprehensive informational data at their disposal to make critical decisions on the general overall economic performance of a country. 1. INTRODUCTION Investopedia (2011) describes a global recession as a significant decline in activity across economies that lasts more than a few months, as measured by the data from the gross domestic product (GDP), while the National Bureau of Economics according to Investopedia (2011), sees it technically as the occurrence of two consecutive quarters of negative economic growth, measured by the same macroeconomic standard.

In order to ascertain the prevalence, absence, threat or passage of global recessions, according to Edgmand (1987), economists cite four economic goals: full employment, price stability, economic. The microeconomic performance of firms within economies during any global crisis should be analyzed and used in conjunction with the macroeconomic indicators, to enable analysts and other experts to have more comprehensive informational data at their disposal to make critical decisions on the general overall economic performance of a country.

Investopedia (2011) describes a global recession as a significant decline in activity across economies that lasts more than a few months, as measured by the data from the gross domestic product (GDP), while the National Bureau of Economics according to Investopedia (2011), sees it technically as the occurrence of two consecutive quarters of negative economic growth, measured by the same macroeconomic standard. In order to ascertain the prevalence, absence, threat or passage of global recessions, according to Edgmand (1987), economists cite four economic goals: full employment, price stability, economic growth and external balance.

When achieved, full employment provides greater amount of goods and services to society and reduces the expenditures associated with unemployment.