Recession

=Global Recession =

**//A recession is a period of negative economic growth. It occurs when a nation's economy shrink. We measure the growth of a country by using Gross Domestic Product (or GDP).// **

**Task One**
Watch the following video and answer the questions below it. You should answer the questions in your exercise book, or add them directly to your portfolio. Each member of your group should have a copy of the answers. media type="youtube" key="5e1BuKBdi84" height="315" width="420"

( WatchMojo, 2008 )

//**Answer these questions:**// 1. The presenter says that a recession is any "downward trend in the business cycle". Write down the //**two initial impacts**// of a recession leads to. 2. Explain the consequence of this for households. 3. Describe how economists might look for that might indicate the country is in recession. 4. Explain how 'fear' of a recession may lead to an actual recession. 5. List the 5 causes of a recession discussed in this video. 6. List the 6 effects of a recession discussed in this video. 7. The presenter suggests that there are three approaches to a country 'getting out of' a recession, Keynesian, Supply Side, Lassaiz Faire Capitalism. Describe one action that might be taken for each perspective in order to recover from a recession.

**Task Two**
Business problems can have multiple causes. Recently, the popular stationery retailer //**Whitcoulls**// faced receivership (going broke, failing). One of the possible causes for this was the global recession amongst others. Get yourself familiar with the situation by reading the following article **//and//** watching the videos at the links below.

//**Newspaper Article -**// [|Whitcoulls stores face closure.] <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">//**National News Video -**// <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">Whitcoulls, Borders not honouring book vouchers

<span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;"> **//Group Discussion//** <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">As you watch and read the information about Whitcoulls, try to answer the following "SQ3R" questions. You should be able to discuss these questions amongst your group members before you move on to the next task.


 * = **S**  || <span style="font-family: Arial,sans-serif; font-size: 10pt;">Before you start reading - **//S//**//urvey:// || * <span style="font-family: Arial,sans-serif; font-size: 10pt;">What is the title of the article?
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">What is the name of the business/industry being discussed?
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Who wrote the text?
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">What is the general message you expect to find with this document? ||
 * = **Q**  || <span style="font-family: Arial,sans-serif; font-size: 10pt;">Before you start reading - **//Q//**//uestion:// || * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Write one question that you have about the topics and/or business being discussed?
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Considering the person who wrote the article, is there a specific bias or perspective being highlighted? ||
 * = **R** || <span style="font-family: Arial,sans-serif;">As you **//R//** //<span style="font-family: Arial,sans-serif;">ead: // || * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Note down any words that you don’t understand.
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">What information hasn’t been included here?
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">What topics haven’t been fully explained?
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Did the content match your initial survey of the document? Note down the differences ||
 * = **R**  || <span style="font-family: Arial,sans-serif;">After you have finished, **//R//** //<span style="font-family: Arial,sans-serif;">ecall: // || * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Summarise the core issue discussed in the article.
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Describe three follow-on effects of the core issue. ||
 * = **R**  || **//<span style="font-family: Arial,sans-serif;">R //**//<span style="font-family: Arial,sans-serif;">eview: // || * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Imagine you have to explain the article to someone with no business-knowledge. List 5 key points that you would tell them.
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Describe one lesson or learning from the article that is relevant to your life or business activities. ||

<span style="color: #0000ff; font-family: Verdana,Geneva,sans-serif;">**Task Three**
<span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">Using the article and video that you viewed in task two, create an Ishikawa (Fishbone) diagram to map the causes of this issue that Whitcoulls faces. <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">To get you started, the basic 'bones' of the diagram are outlined below. //You may wish to review the ToolTest page to review how to create an Ishikawa diagram.//

<span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">

<span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;"> //**Group Discussion**// <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">As a group, discuss which cause you think had the most impact on Whitcoulls' troubles. Discuss the contribution that the global recession had on Whitcoulls. Make a note of your group comments on the Fish & Bone Diagram.

<span style="color: #0000ff; font-family: Verdana,Geneva,sans-serif;">**Task Four**
<span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">Discuss the causes of the Whitcoulls issue and how a global recession contributed to this. <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">//**Add to your portfolio**// <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">Write a paragraph //(approx 200-300 words)// on what you beleive was the main cause of Whitcoulls going into receivership. Add this, along with the completed diagram to your personal portfolio.

**Checkpoint! **

<span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**// Before you move on to the next page, you should have added the following things to your portfolio: //**
 * <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**// The answers to the questions about a recession in Task One //**
 * <span style="font-family: Verdana,Geneva,sans-serif; font-size: 10pt;">**// The Isikawa diagram, along with one paragraph on the major causes of the Whitcoulls receivership. ﻿ //**