Chapter 6

Summary:

http://www.cbc.ca/canada/nova-scotia/story/2009/05/12/nb-lobster-industry-337.html

The Global Economic Crisis from last year had brought a huge change and difficulties of various industries all over the world. The Lobster Industry in New Brunswick is also being greatly affected on. Between 300 and 400 jobs have been lost in northern New Brunswick, mainly in the fish processing sector, said the executive secretary of the Maritime Fishermen's Union. The price of fish also dropped dramatically to 2.75 dollars a pound. This is exactly the lowest price in decades. The industry called an urgent meeting with the government to tell them that they need a short term investment of the government in order to lift industry up and avoid bankruptcies. However, the government has no plans for immediate financial assistance of the industry.

Connections:

The cash, short-term investments and receivables could affect greatly on the financing and operating activities of industries. This is because they are the most liquidity assets and companies could use them when ever they want to. It helps the company to expand and keep its operation. The concept is obviously being shown in this news. The Lobster Industry in NB is experiencing a possibility of bankruptcy because of the presence Economic Crisis not long ago. Many workers in the fish processing sector have lost their jobs. The company also is experiencing the lowest price of the fish they are selling ever. The executive secretary of the Maritime Fishermen's Union was hoping that the government could make a short – term investment in the company in order to pull it out of the difficulty, or at least help it out of bankruptcy.

Reflection:

The Economic Crisis has a long – term affect all over the world. Even though the crisis was being caused by America, it is not the only victim of the crisis. Canada has a very close bond with America in economics before, and after the Great Depression toke place after WWII, Canada had been carefully grows independent from America. Even though the Economic Crisis in America has not affected Canada as deeply as the Great Depression, it still has an effect on Canada’s industries. The Canadian government would surely want to help the industries. But the question is, do they have the money to help? Are they, themselves being involved in the Economic Crisis? Can they save themselves? If they do have the money, why would they refuse to make a assistance for the Lobster Industry?