Vulnerability to crises

The effects of a ten percent decline in demand on production and employment in – a company, – a branch, a region. a national economy, or an economic territory (the effects of a ten percent decline in demand on production and employment in a company, a branch, a region. a national economy, or an economic territory). The level of the decline in demand is not uniformly defined as ten percent. – The susceptibility of manufacturing companies to crises differs according to sector, legal form, equity capitalization and size class. Companies with a high unit value ratio are hardly susceptible to crisis. In general, the shock absorption capacity of German industry has improved significantly in recent years, according to calculations by the Deutsche Bundesbank. This has also reduced the risk of any contagion to the financial sector. – See gearing, pricing power, sector concentration. – Cf. Deutsche Bundesbank Monthly Report of March 2014, pp. 62 et seq. (determinants of companies’ vulnerability to crises; individual risk factors; overviews).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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