Economic recession Is general slowdown of economic activity over a period of time that measured by Gross Product Domestic (GDP),recession is highly characterized by falling of investment spending, business decline, slow growth of new business high rate of unemployment. [i] 

Economic recession can be caused by widespread of drop in spending and investments, poor micro-economic policies, such as poor control of financial institutions such as banks, and other lender institutions as well as other economic variables

During economic recession, many business profitability declines and other bankrupt due to lack markets for their products and services, many customers have inadequate money to buy these products and services.

Economic recession also affect stock markets, where by share of the companies drops sharply and reduce confidence to investors

Government revenues decline due to economic recession, hence government fails to provide social services and other future plans.

Economic recession in one country can also affect others, in sense that recession has magnitude, many multinational companies operate more than one country, and hence impact in one county can have multiplier effects in other countries, many FDIs also will be affected

E.g. economic recession which was hit USA in 2008/2009 which was contributed to united states housing bubble and subprime mortgage crisis, was affected not only in America but almost all over the world, many business affected with this recession, stock markets such as NYSE,LSTE, and other banks were bankrupted such as warner brothers. [ii]

Impact of Economic Recession

High rate of unemployment, recession can contribute to high rate of unemployment in sense that may company reduce number of staff in order to strive; in recession it leads to other problems, such as people who lack jobs may engage in criminals in order to survive.

Recession may lead people to lack disposable income; and other fails to repay their loans hence many families are affected.

Decline in productivity, where by many business profits falls, other firm’s bankruptcy, hence and affect the whole financial system.

Home

Recession has negative impact due to decline of growth domestic produces (GDP) where by its affect economic as well social life.

Many new businesses collapse, and hence fails to repay their loans banks.

Recession can led to decline in living standard due to the fact people depend on wage and salaries, this can have negative impact on stability of families and individuals health and well-being

Multinational Corporation (MNC) or transnational corporation, is an enterprise that manages production or delivered service in more than one country, multination cooperation has been achieved due to advancement in information technologies as well globalization,

British is one of country which have many multination companies such British petroleum Vodafone, Virgin, Rynair as which operate within and outside the country, they are interested to operate in emerging economies such as India, china, Africa and Brazil

British companies usually engaged in international business

Acquire new markets, British multinational usually going international in order to search new markets for their products and services, many large firms flock to china, India, brazil and Africa due to growing of consumer purchasing power.

Increasing sales, firms expand international so as to increase its market share hence being able to compete.

Acquiring resources, large firms decided to go globally because to find resources so as to continue producing and ensure production cost can be controlled hence to able to pass benefit to customers.

Cheap labor, due to growing of stiff competition in the markets, large firms fight to reduce production cost in order to earn profit, this led companies looking overseas areas where cheap labor is available.

Global Strategies, many firms consider engaged in international business as strategies in order to survive in a stiff competition

Growing consumer pressure, tastes and preferences of consumer has changed dynamic, income increase; consumer can be able to purchase luxurious products and services, growing income to emerging economies influence many firms to set their operation and respond to these markets