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Analysing and Evaluating Economic Variables

 

Opportunities for Analysis

  • Demonstrating the causes of inflation.
  • Showing how inflation affects a particular organisationís policies.
  • Examining the reasons for change in interest rates.
  • Studying the implications of changes in interest rates on an organisation.
  • Analysing the implications of fixed and or flexible exchange rates.
  • Showing how exchange rate changes affect an organisation.

 

Opportunities for Evaluation

  • Recognising how price elasticity of demand will influence the effect of inflation.
  • Discussing how the cause of inflation can have different implications for a company.
  • Evaluate how interest rate changes will affect larger item that are bought on credit more than smaller non-durable items.
  • Evaluating the significance of exchange rate changes according to whether the firm is an importer or an exporter; the percentage of trading it does with foreign countries; and which countries it trades with.

 

E-mail Steve Margetts