Firms
in sentence
3712 examples of Firms in a sentence
Firms
in advanced economies are now cutting jobs, owing to inadequate final demand, which has led to excess capacity, and to uncertainty about future demand.
With credit exhausted, the effects on aggregate demand of decades of redistribution of income and wealth – from labor to capital, from wages to profits, from poor to rich, and from households to corporate
firms
– have become severe, owing to the lower marginal propensity of firms/capital owners/rich households to spend.
By this narrow logic, when it comes to the pharmaceutical industry, we should be unconcerned if drug firms’ share prices are boosted not by new discoveries, but by financial maneuvers, such as share buybacks or tax inversion.
Most manufacturing is now dominated by multinational
firms
that operate production facilities in many countries.
Foreign-owned enterprises account for about half of China’s exports; and US
firms
are the biggest investors in the country.
Another major difference today is that many
firms
are a part of global value chains, whereby goods are assembled in countries like Mexico or China from imported components, the most sophisticated of which often come from the US.
Extending investment tax credits to German
firms
might be more effective in boosting spending, but doing so would be politically problematic in a country where labor’s share of national income is already declining.
But if the government, in a fully employed economy, redirects resources toward the production of nontraded goods, households and
firms
will have to find other ways of satisfying their demand for tradables.
But official measures of GDP may grossly overstate growth in the economy as they don't capture the fact that business sentiment among small
firms
is abysmal and their output is still falling sharply.
And, while data from
firms
suggest that job losses in the last three months were about 600,000, household surveys, which include self-employed workers and small entrepreneurs, suggest that those losses were above two million.
Moreover, the total effect on labor income – the product of jobs times hours worked times average hourly wages – has been more severe than that implied by the job losses alone, because many
firms
are cutting their workers’ hours, placing them on furlough, or lowering their wages as a way to share the pain.
Prime borrowers with good credit scores and investment-grade
firms
are not experiencing a credit crunch at this point, as the former have access to mortgages and consumer credit while the latter have access to bond and equity markets.
And the credit crunch for non-investment-grade
firms
and smaller firms, which rely mostly on access to bank loans rather than capital markets, is still severe.
Or consider bankruptcies and defaults by households and
firms.
Larger
firms
– even those with large debt problems – can refinance their excessive liabilities in court or out of court; but an unprecedented number of small businesses are going bankrupt.
The riskiest institutions were not the largest:
firms
like J. P. Morgan and HSBC proved safer than others, and neither sought nor needed state funding.
When
firms
hit by reduced demand contract operations, the space they give up becomes available for use by entrepreneurs with better ways of running the business – or with better businesses.
Some of the employees they let go will start
firms
(and hire employees) of their own.
When
firms
hit by reduced demand stop hiring for a time, some people who would have joined established
firms
use their situation to dream up new products or methods and organize startups to develop them.
Small
firms
and startups must always struggle for credit, and the Great Recession that followed the 2008 financial crisis made it harder for them.
Yet the recession did not prevent droves of such
firms
from finding financing in Silicon Valley, London, and Berlin.
The demand-siders say that innovation only makes recovery harder, because it enables
firms
to meet existing demand with fewer employees.
Surely, the technical challenges of exploiting such shale-gas reserves are huge, and only a handful of
firms
in the world have the necessary knowhow.
Those who can borrow have ample cash and are cautious about spending, while those who want to borrow – highly indebted households and
firms
(especially small and medium-size enterprises) – face a credit crunch.
In the Middle East, Chinese
firms
are building a subway in Iran’s capital and a high-speed railway in Saudi Arabia.
Latin America sharply reduced its trade barriers and privatized its state-owned
firms.
But the present-day pencil story would be incomplete without citing China’s state-owned firms, which made the initial investments in technology and labor training; lax forest management policies, which kept wood artificially cheap; generous export subsidies; and government intervention in currency markets, which gives Chinese producers a significant cost advantage.
China’s government has subsidized, protected, and goaded its
firms
to ensure rapid industrialization, thereby altering the global division of labor in its favor.
And Spain’s export growth has been powered by price-sensitive low-value-added sectors like fuels, foods, and raw materials, not Spanish firms’ movement up the value chain.
Spain’s overall level of debt (government, households, financial firms, and non-financial corporates) is barely below its 2012 peak and still far higher than in 2008.
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