The-Impact-and-Countermeasure-Study-of-the-World-E

TheImpactandCountermeasureStudyoftheWorldEconomicCrisisonChineseFamilyBusinessAbstract:Attheendof2007,subprimemortgagecrisisbrokeoutinAmerica,andthenitgraduallyevolvedintoglobaleconomiccrisisandspreadtoothercountries.TheinternationalfinancialsituationhasbeendeterioratingsharplyandhasrapidlyevolvedintothemostseriousinternationaleconomiccrisissincetheGreatDepressionoflastcentury.Exporttrade,astheimportantsupportofChina'seconomy,wasaffectedinevitablyandgreatly,amongwhichsmallandmediumenterprisessufferedmost.Sincemostofthesmallandmedium-sizedenterprisesinourcountryarefamilyenterprises,somerelatedtheoriesaregiveninthispapertoanalyzehowtheglobaleconomiccrisisinfluencesthesmallandmedium-sizedfamilyenterprises,anditalsoanalyzeshow,inthesituationofeconomiccrisis,wecansolveproblemsforthefurtherdevelopmentoffamilyenterprisesandsomesuggestionswillbegivenatlast.Keyword:economiccrisis,familyenterprises,opportunity,developmentI.INTRODUCTIONEconomiccrisisreferstothesituationthattheeconomyofoneormorecountriesortheentireworldconstantlyshrinks(negativeeconomicgrowth)duringalongtime.Itistheoutbreakofthecrisisofoverproductionincapitalisteconomicdevelopmentcycle,becomingadecisivephaseoftheeconomiccycle[4].Threeworld-wideeconomiccrisesduring1957~1958,1973~1975and1980~1982,withoutexception,leadtoalmostfatalstriketotheworldeconomyatthattime[5].Globaleconomicrecession,adeclineinproductionandthetotalvolumeoftrade,agrowthoftheunemploymentrate,andsharpeningconflictsandsoonarealldisastrousimpactitbringsabout.Onthewhole,theinfluenceofeconomiccrisisinChinaismainlyembodiedinasharpcontractioninexports,aswellastheshrinkingofconsumerdemandwhichitcauses.Althoughthefinancialmarketsofourcountryhaven’tfullyopenedyet,ourcountry'sdegreeofeconomicdependenceontheoutsideisupto60%currently,whilethemainimportcountriesofourdomesticproductsaresomedevelopedcountries,suchaseurozoneandtheUnitedStates[7].Moreover,onegreatcharacteristicofChina'seconomyisexport-leddomesticinvestment,whichpromotesthegrowthofdomesticGDP.Ifthereareproblemswiththeexport,thedomesticinvestmentincapitalassetswillbeaffectedinevitably.Thereisnodoubtthatthedomesticeconomywilldropalot[9].Thegreatestassetthat30years’reformandopeningupbringstochina’seconomyisthecreativeandvitalreleaseofmasssmallandmedium-sizedprivateenterpriseswhicharepredominantinfamilybusinesses.Unfortunately,theglobaleconomiccrisismakessmallandmediumenterprisesfacemanydifficulties.Sharpdropinoverseasorders,combinedwiththedownturnindomesticconsumption,directlyleadstoourcountry’ssustainedlossesorevenbankruptcytomanysmallandmediumenterpriseswhichareexport-orientedorhaveahighdegreeofdependenceuponforeigntrade[3].Facedwiththishardeconomicenvironment,weconductanobjectiveanalysisoneconomiccrisisinthispaper,combiningwiththecharacteristicsoffamilybusinessesatthisstageinourcountry,demonstratethecommonproblemduringtheirdevelopment,andanalyzethedifficultiesbroughtaboutbytheeconomiccrisisanditscountermeasuresandthewaysHuShaolongManagementdepartmentWuhanUniversityofScienceandEngineeringWuHan,Chinae-mail:[e-mail]artmentWuhanUniversityofScienceandEngineeringWuHan,Chinae-mail:[e-mail]2010InternationalConferenceonE-BusinessandE-Government978-0-7695-3997-3/10$26.00©2010IEEEDOI10.1109/ICEE.2010.7573000tograspopportunities,soastosearchforawayofsustainabledevelopment.II.ANALYSISOFCURRENTECONOMICCRISISA.ThereasonsoftheformationfortheeconomiccrisisIntraditionaleconomictheory,theoutbreakofeconomiccrisisisdecidedbythebasiccontradictionsofcapitalism,namely,contradictionbetweentheproduction’ssocializationandtheprivateownershipincapitalism.Economiccrisisofthenewerameansthatoligopolyinthevariousindustriesormonopolycapitalistsusepolicyloopholesormonopolypositiontoexploitthewholecommunity,whichhavecausedinflatedvaluesintheindustryandletthesocietypaythebill[6].Inotherwords,themoderneconomiccrisisisnotoverproductionbutexcessoffalsewealthandsurplusofthebubbleeconomy.B.ThecharacteristicsofcurrenteconomiccrisisComparedwithothersubprimemortgagecrisisinhistory,thiseconomiccrisishassomethingincommonwiththepreviousones,butmanymorefeaturesofthenewera:Thiseconomiccrisisisworldwide.Sincethedegreeofintegrationoftheworldeconomykeepsincreasing,dependenceofmajoreconomiesoneachotherkeepspenetrating;therefore,thespreadoftheeconomiccrisisisalsoboundtobemuchquicker.Thecurrenteconomiccrisishasaconsiderabledegreeofharmfulness.TheUnitedStatesistheworld'seconomicenginedeterminedbytheBrettonWoodssystem,inadditiontothestatusoftheUSdollarintheinternationaltrade,whichmakethiseconomiccrisiscausegreatdamagetotheworldeconomy.Thedamageisembodiedinthesefacts:declineinthevolumeofinternationaltradematerialsandglobalinvestmentcapability,riseofwidespreadbusinessfailures.Thecurrenteconomiccrisishappenedduringanextremelysensitiveperiod.ThiseconomycrisishappenedinthestagewhereUnitedStatesandtheworldeconomyareinadjustmentandinstability.Theworldeconomyisonadownturnchanneloriginally.What’smore,theoccurrenceofthesubprimemortgagecrisisacceleratedtheUnitedStatesa