Analysing and Evaluating Economic Variables
Opportunities for Analysis
the causes of inflation.
how inflation affects a particular organisationís policies.
the reasons for change in interest rates.
the implications of changes in interest rates on an organisation.
the implications of fixed and or flexible exchange rates.
how exchange rate changes affect an organisation.
Opportunities for Evaluation
how price elasticity of demand will influence the effect of inflation.
how the cause of inflation can have different implications for a company.
how interest rate changes will affect larger item that are bought on
credit more than smaller non-durable items.
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.