Economic influences

Question 1

What are external influences?

Answer 1

The key external macroeconomic factors that can influence an organisation. This includes change in interest rates, exchange rates, government spending, taxation, the economic cycle and inflation.

Question 2

Define the business cycle

Answer 2

Fluctuations in economic activity over time

Question 3

How do you structure a question on the impact of interest rates ?

Answer 3

1. Definitions
2. Impact on firms revenue
3. Impact on firms costs
4. It depends on…
   Size and duration

Question 4

How do you structure a question on the impact of exchange rates ?

Answer 4

1. Definitions
2. Impact on firms revenue
3. Impact on firms costs
4. It depends on…
   Size and duration, PED

Question 5

How do you structure a question on the impact of a recession?

Answer 5

1. Definitions
2. Impact on firms revenue
3. Impact on firms costs
4. It depends on…
   Size and duration

Question 6

How do you structure a question on the impact of inflation?

Answer 6

1. Definitions
2. Impact on firms revenue
3. Impact on firms costs
4. It depends on…
   Size and duration, Cost push or demand pull?