Financialisation is a process of traversing all the major money flows and precedence over to the financial institutions ,markets, and other concerns that dwell on the financial realms.This phenomenol change in the radical of the existing system proved to pave a way for better economical returns ,moreover in a shorter span.This eventuality of the shifting of power has lured a lot of countries to adapt it whereas some incredulous countries decided to spectate its economic ramifications. Financialisation in subtle way can be explained as a phase which leads to financial institutions and finance based markets to shape up as the monopoly in the economy of the state. Although, a lot of analysts claims that GDP and capital command of certain countries can only thrive if they adhere to such strategies but it still remains as a million dollar question as to what extent these can be achieved without putting the common tax payers earnings and livelihood at stake.
ITS IMPACTS ON WORKPLACE
It’s indeed that financialisation has taken a toll on the small and medium level organizations ,delving deeper into its implications in big scale manufacturing industries casts a shocking revelation. Industries which have endured a lot of economical curtailment imposed on them in the past failed to survive through this overhaul of the economical policy ,reason is industrial tycoons got inclined to absorbing such policies which yields them higher amount of profits in an expedited manner .Hence, this made them invest and be associated with such institutions and game changing policies rather than shelling out money for the development of palpable growths .In simple words, they commenced their businesses by investing in money rather than investing in producing products which can be traded off for money. Money was put out as a product that could be auctioned , acquired ,bought in same way as a product but in values higher than what it could replicate in actual. Banking is all we could muse off coming across such statements ,yes they truly are but in a much more humungous way, global way!
Having said that, fraternities that took a hard jolt are in the industries and companies that relied on manufacturing, process, logistics,engineering etc which comprises the predominant share in contributing to the countries GDP, but the minor sect that relied on the finance based sectors reaped higher incomes . A lot of industries faced detrimental effects on its core policies, some staggered ,some shattered . One such example is TIMKEN ,a renowned manufacturing organization which broke off into two significant pieces as per the directions and insistence of the board of directors on the pretext that it could make higher gains in shorter term ignoring the potentiality of the company to perform well in other crucial aspects if worked in unison. Owing to these reasons, manufacturing companies started to dwindle in size. And after a given point they diminished completely leaving no vestiges for to reclaim its lost status anytime in future. It’s none other than the united states which drove such a situation upon itself.
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