Economic Condition :: Economics

Economic ConditionEconomy from anywhere it could be from the United States or even fromthe UK it self. Can fork up a broad impact on the hearty. The maineconomical influences on a firm are-1) Inflation2) Exchange rates3) Unemployment4) Interest rates1) splashinessIn some things the price of them could go up. Its because prices inthings when eon yesteryear generally goes up. For workout a time piececosting gravitational constant today taking into custody go up to 1050 in about a years time, Butthat is if they area no scratches and its in a consummate condition.2)Exchange RatesExchange Rates is the rate of exchange between currencies in disparatecountries for example. 1 is worth about $10 in Hong Kong.3)UnemploymentUnemployment is a amount of mess who are unemployed but are volitionto work and that are actually looking for work or that they git workbut they keistert find any. But it could be lots to a greater extent reasons too.4)Interest rateInterest rate is the way tha t bank makes notes. What they do is whenpeople needs money to buy a house or a car they volition need money sothey exit impart from a bank. The bank will lend them money but they wanta repayment in a certain amount of time and they too want anotheramount of money which is called pursual. So for example if a personborrows 1000 to buy a car they mite have to pay back 1100 back tothe bank. So that is 10% on the interest rate.But people can also befit from interest rates too. Because if some oneor company puts their saving in a bank they will get interest from it.If they keep the money in a certain amount of time. Could be somethinglike half a year to a year. And the to a greater extent you pay in the more you willget back from the bank.InflationInflation can have affects on businesses too and below I have listedsome of the variant types of inflation.1) Cost of raw material2) Sales will go cumulation3) Further consequences-* Reduce costs,* Lower wages,* Dismiss some staff,* Ev entually split upInterest rates (increase)Interest rates can have a affect on a company too. That shows anythingcan small can have a big effect on a business. That why it is hard tohave your own business. Below I have listed different types ofinterest rates-* Firms cost of borrowing will increase also that means less likely to invest in new equipment.* Consumers will spend less. A) because they are encouraged to save more so you get better interest rate.