Recession and loss of economy

The recession

Recession refers to that state of business. When the sale of the item decreases. It has many consequences and comes due to many reasons. Recession is also a part of the business cycle. As I mentioned in my first blog. There is both a slowdown and a boom in business. There is a slowdown in present condition. Businessmen believe that this slowdown is due to GST (goods and service tax). It is also true to some extent. But it would not be right to assume the cause of the entire market. There are many other reasons for the recession. We understand these.

Loss of economy

1 Government policies: - Sudden change in the policies of the government also leads to recession. Which is being said so in the present condition. Because making VAT (value added tax) GST is also government policy.

2 Emergency: - Due to flood, famine, extreme rain, storm etc. in the country, there is a slowdown in business. This condition prevents the sale of the business, or stops the production. This leads to reduced business transactions, and a recession.

3 Competition: - Increasing competition of business also reduces business transactions. Competition gives the customer a choice. The same hurts local businesses.

4 Excess production: - Increased production of a commodity by itself or by any other production unit also reduces the price of the commodity. Due to which there is an economic crisis in the business. The condition is not the same as some markets.

5 Bad management system: - Sometimes the reason for bad performance of the business is not the right management system. In which the situation created due to increase in wastage, decrease in production etc. is also similar to recession.

6 Competitive object: - Sometimes the item also competes. It happens when one object starts replacing another. Such as replacing the sanitary pad with Tempole and Matchal-Cup.

7 Reduction in quality: - Many times you start reducing the quality of goods for more profit. As a result, customers start losing interest in your goods. It is now slowly decreasing sales. And thus conditions are created.

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Thank for reading

I have another blog on the recession. Whose name is the adversity of business. You can click on this line to read it.