Question

Think of a large industrial firm or retailer in your region that has recently closed down (or is at risk of closing). What are some of the reasons for its closure? How are these related to the globally interconnected economy?

Answer 1

Recently in india Jet Airways has closed due to large amount of death from the National Bank.

From the last four years they have suffering huge losses due to large increasing Jet fuel price and pullow customer demand for air travel of jet air.

The company fails to pay the installment of aircraft and stop the salary of employees. Due to not attracting the customer and building the consumer base causes lower demand from the company. In the meantime there is high competition in the industry so taking a strategic management is very essential. There is inefficient management which lead to losses the company focuses on international travel rather domestic which has higher demand. Did not take benefit from tax exemption buy flying on priorities route. Eventually these losses leads to solvency of the company. As the investor does not come to carry on the business by converting the equity into debt.

Jet fuel cost is one of the important component of total cost, rise in the jet fuel price international market and low air travel demand in the international market leads to to huge losses. Which factor are connected to global economy slow down interconnected.