The Pros And Cons Of Recession

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Recession is a period of activity wherein there is a slowdown in the growth of the economy. Recession is one of the business cycle, which includes the economic prosperity, economic depression, and economic recovery, that is experienced for a long period of time. The recession is also defined in the reduced demand for services, wherein there is a reduction in different types of services and really affects in the growth of the gross domestic product rate or the GDP rate. Inadequate goods and supply really affect the economy by having a scarcity and limited supplies of goods. The word “recession” refers to a period of economic activity is characterized by negative growth in the economy, which reduces the demands for goods and services (McDaniel, C., Lamb, C.W., & Hair, J.F., 2012). Marketing strategies are strategies that focus on selecting and describing one or more target markets and developing and maintaining a marketing mix that produce mutually satisfying exchange with target markets. Many consumers change their buying behavior in times of financial crisis or economic recession. Many companies have to arrange the way they conduct their business and change their plans and strategies to meet the customer’s new preferences in buying different products and…show more content…
Another effect is the increase rate of poverty in many countries, which expressed in unemployment rates, underemployment rates, limited goods and reduced services that affects many people today in the world. The third effect of recession is the Low GDP rate, which is very important in a particular country, wherein there is a downfall of the domestic product. And the fourth effect is the economic regression that refers to global changes in the economy (Joseph, Larrain and Turner,

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