economic restructuring

Examples of economic restructuring in the following topics:

• Disinvestment and Deindustrialization

  • Deindustrialization refers to the process of social and economic change ignited by the removal or reduction of industrial activity.
  • One explanation centers on economic progress.
  • Another explanation focuses on economic restructuring—institutional and governmental encouragement of the development of a more robust service sector, often at the expense of the manufacturing sector.
  • According to the Organization for Economic Cooperation and Development (OECD), real industrial production rose in the United States in every year from 1983 to 2007.
  • Examine the four elements of deindustrialization and its impact on society, in terms of economic restructuring and societal crisis

• The Dynamics of Poverty

  • In economics, the cycle of poverty has been defined as a phenomenon where poor families become trapped in poverty for at least three generations.
  • These families have either limited or nonexistent social and economic resources.
  • Sociologists have argued that the economic restructuring of the U.S. and other developed nations from manufacturing to service-based economies has led to chronic joblessness in inner cities.
  • These illnesses can be disabling, preventing people in poverty from working in certain occupations or at certain capacities, thus reducing one's opportunities to improve their social and economic status.
  • This limits their ability to improve their economic position, again perpetuating poverty.

• Urban Decline

  • Features of urban decline include deindustrialization, depopulation, economic restructuring, abandoned buildings, high unemployment, fragmented families, political disenfranchisement, crime, and a desolate landscape.
  • Since the 1970s and 1980s, urban decline has been associated with Western cities having experienced institutional restructuring.
  • Cities tend to grow because of momentary economic booms.
  • Economic decline tends to lead to urban decline.
  • However, subsequent economic changes left many newly-grown cities economically vulnerable and marred with employment factors that contribute to urban decline.

• The Economy in the 1980s

  • By 1983, inflation had eased, the economy had rebounded, and the United States began a sustained period of economic growth.
  • The economic upheaval of the 1970s had important political consequences.
  • Reagan (1981-1989) based his economic program on the theory of supply-side economics, which advocated reducing tax rates so people could keep more of what they earned.
  • In the United States, meanwhile, "corporate raiders" bought various corporations whose stock prices were depressed and then restructured them, either by selling off some of their operations or by dismantling them piece by piece.
  • Critics watched such battles with dismay, arguing that raiders were destroying good companies and causing grief for workers, many of whom lost their jobs in corporate restructuring moves.

• Monopolies, Mergers, and Restructuring

  • The 1980s and 1990s brought new waves of friendly mergers and "hostile" takeovers in some industries, as corporations tried to position themselves to meet changing economic conditions.
  • Just as the merger wave of the 1960s and 1970s led to series of corporate reorganizations and divestitures, the most recent round of mergers also was accompanied by corporate efforts to restructure their operations.
  • This was true despite layoffs following mergers and restructurings, as well as the sizable growth in the number and employment of small firms.

• Conceptual Change: Definition

  • This shift or restructuring of existing knowledge and beliefs is what distinguishes conceptual change from other types of learning.
  • However, outside of school, students develop strong (mis)conceptions about a wide range of concepts related to non-scientific domains, such as how the government works, principles of economics, the utility of mathematics, the reasons for the Civil Rights movement, the nature of the writing process, and the purpose of the electoral college.
  • Companies often restructure, changing their business strategies and processes to remain competitive and responsive to the needs of their customers.
  • The advancement of technology has also initiated a trend in the restructuring of industrialization.
  • Restructuring in companies or entire industries often requires employees to re-conceptualize their roles and responsibilities and change the way they perform their jobs.

• Afterword: Beyond Economics

  • This book also demonstrates that the American economic system has been marked by almost continuous change.
  • Schumpeter said capitalism reinvigorates itself through "creative destruction. " After restructuring, companies -- even entire industries -- may be smaller or different, but Americans believe they will be stronger and better equipped to endure the rigors of global competition.
  • Economic success breeds other issues, however.
  • Economic growth has been central to America's success.
  • As the economic pie has grown, new generations have had a chance to carve a slice for themselves.

• The End of the Cold War

  • Instead, Soviet spending on the arms race and other Cold War commitments can be understood as both a cause and effect of the deep-seated structural problems in the Soviet system, which accumulated at least a decade of economic stagnation during the Brezhnev years.
  • By the time Mikhail Gorbachev had ascended to power in 1985, the Soviets suffered from an economic growth rate close to zero percent, combined with a sharp fall in hard currency earnings as a result of the downward slide in world oil prices.
  • To restructure the Soviet economy before it collapsed, Gorbachev announced an agenda of rapid reform based on what he called perestroika (restructuring) and glasnost (liberalization, openness).

• Striking Agreements to Avoid Bankruptcy

  • Debt restructuring is a process that allows a company or individual in financial distress to reduce and renegotiate its delinquent debts in order to improve or restore liquidity and continue its operations.
  • Out-of court restructurings, also known as workouts, are becoming increasingly common.
  • A debt restructuring is usually less expensive than bankruptcy.
  • The main cost associated with debt restructuring is the time and effort required to negotiate with creditors.
  • Debt restructurings typically involve a reduction of debt and an extension of payment terms.

• The Postwar Economy: 1945-1960

  • But instead, pent-up consumer demand fueled exceptionally strong economic growth in the postwar period.
  • Economic aid flowed to war-ravaged European countries under the Marshall Plan, which also helped maintain markets for numerous U.S. goods.
  • And the government itself recognized its central role in economic affairs.
  • The United States also recognized during the postwar period the need to restructure international monetary arrangements, spearheading the creation of the International Monetary Fund and the World Bank -- institutions designed to ensure an open, capitalist international economy.