Credit Crunch :: Financial Crisis, Increased Interest Rates

Credit crunch, the sudden reduction in the availability of liquidity (loan or credit) in the financial market that lead to higher judge of borrowing, has occurred at 9 August 2007 ((National Council for Voluntary Organisations, 2010 Investopedia ULC, 2010 Anon., 2009). This mainly due to the hold bubble in between 2000 to 2007 (Xu, 2009) that dampen the confidence of financial institutions to sum up which olibanum increased the interest rate by 20%, put whizz across it nearly impossible for companies to borrow (Xu, 2009 Buzzle.com, 2010 Investopedia ULC, 2010). This has therefore impact every flesh of business, as well as, the multinational enterprise - that based in one country, but has operate various business activities through a entanglement of subsidiaries in one or more foreign countries (Hodgetts, R.M & Rugman, A.M., 2003) One of the multinational enterprises that being affected is ford Motor union, an automotive manufacturer, based in Dearborn, America which found ed and incorporated by Henry Ford on sixteenth June, 1903 (Iloveindia.com, 2010 Anon., 2010).Prior to this credit crunch issues, Ford is aggressively on commit in foreign countries and acquisition of other companies. It has begun its foreign investment later on the first manufacturing plant build in the small t hold of Walkerville, Canada on August 17, 1904. (Novelguide.com, 2010), and has started to take over other companies, such as Mercury, Volvo (Sweden), Aston Martin (UK) and a 33% of Mazda (Japan), later the first acquisition of Lincoln Motor Company in 1925 (Answer.com, 2010 The Super Cars, 2010). Furthermore, in the mid-1980, Ford has diversified into financial services, to wit Ford Motor Credit Company (FundingUniverse, 2004 Anon., 2010), and has soon become the countrys indorsement largest provider of diversified financial services, ranking only behind Citicorp after take over The Associates, a Dallas-based finance company in 1989 (FundingUniverse, 2004).It has thus e xpanded the manufacturing, assembly and sales facilities in 34 countries (Freeonlineresearchpaper.com, 2009) which group in four principal regions North America (parent country), South America, Europe and Asia peaceable (Ford Motor Company, 2008). In order to manage the huge organization smoothly, Ford seeks a balance between centralized leadership and decentralized effectuation in its parent and host country (Bazak, et al., 1998.). Hence, the management in apiece region company has maintain a corporate jurisdiction, where, each had its own manufacturing processes , product development systems, suppliers, and other duplicative structures the regions along but still on a lower floor the general supervision of the main office. (Ford Motor Company, 2008).