Global Financial Crisis on Japan Country Essay Example | Topics and Well Written Essays - 500 words

Global Financial Crisis on Japan Country - Essay Example Global financial crisis also reduced the flow of money in the country’s economy. During the economic downturn, many Japanese opted to cut down their shopping budgets. This greatly affected the revenues of businesses that already had less ability to access credit. Further more investors became weary of putting their money into companies. This too had a severe impact on businesses. The stock market business collapsed, making many business men lose a large portion of their investment (Needle, 2010, p. 476). Companies found it hard to survive under unconducive environment caused by the economic crisis. The senior managers of the largest Japan realized the need to cut cost for the sake of their company’s survival. Labor being one of the business greatest expenses, many people lost their jobs. The largest companies eliminated job opportunities on a large scale leaving many Japanese jobless (Batten& Szilagyi, 2011, p. 375). Other small businesses simply found out that they could not survive the adverse effect of the global economic crisis. These companies opted to close down their activities, leaving too many of their workers jobless. During the global financial crisis, many companies also reduced their charitable activities across Japan. This act eliminated chances of many Japanese to access resources they desperately needed. Many of them were unable to access clean water and security (Paul, 2010, p. 223). Following the effect of the global market turmoil, the FSA has initiated several measures aimed at regulating the functioning of financial intermediation. FSA has initiated a new capital injection scheme, to enhance proper flow of capital in the country as it was before the downturn (Paul, 2010, p. 254). FSA has also introduced new regulatory framework for credit rating agencies. It has considerably strengthened the disclosure requirement for financial firms with respect to their exposure to securitization