Wednesday, October 28, 2009
Iceland says bye to Big Mac
This article talks about how Iceland is also targeted by the world financial crisis. Symbol of globalization Big Mac is shutting down in captial Reykjavik. It is too expensive to keep them because of the economic situation and most of the imports come from Germany. There has been increase in costs due to fall of Krona currency and high tariffs on imported goods.
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2 comments:
It is pretty remarkable that the global recession is not only effecting smaller economies such as Iceland, but the fact that even the fast-food giant McDonald's itself is being forced to exit the market in Iceland due to the collapse of the Icelandic krona is pretty crazy in itself. I never would have imagined that at one point during this recession we would see an article about McDonald's having to close down in certain parts of the world. This just goes to show the seriousness of the current recession and how it is effecting almost everything.
I believe that we may see more firms begin to pull out of foreign localities because of the current global recession we are in. I must say that I am quite astonished to see a global icon as big as McDonald's being forced to leave a foreign nation. However, with McDonald's requirements of importing all the goods required for its restaurants, it was no longer feasible for them to continue operations with costs doubling. If we start to see a trend of mass exiting by companies from foreign nations many jobs will be lost and this global recession may worsen.
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