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Global recession has hit hard not only the American economy but most of the Western economies. Paul Krugman (2008) blamed the lack of control and regulation on the financial markets that led to the financial recession of the late 00’s. The crisis has affected many global firms, including Starbucks. Despite the fact that Starbucks has managed to become a global cultural phenomenon during the 90’s and early 00’s, it did not managed to respond with success on the economic recession of the late 00’s. Mercer (2008) refers on the case of Starbuck’s operations in Australia. In 2008 Starbucks had to fold up 61 of its 85 shops in Australia. However the reason for its failure in this country was not the economic recession; Australia was not hit from the economic crisis.
