BU111 Lecture 4: BU111 - Lecture 4 - External Analysis Models
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Bu111 - lecture 4 - external analysis models (continued) When studying, think about not just the elements, but an example that would create each element in the real world. Employment rates- high unemployment rate means less jobs, less income. Exchange rates- any canadian business that imports from a foreign country would be happy if the canadian dollar is strong. If it were weak, exporters are able to buy canadian products for cheaper, more competitive. Balance of trade- whether we import more as a country than we export. Importing more than exporting, you have a negative balance, and vice versa. Highly productive economy is able to generate more value out of less. A growing economy is a good economy for businesses. Shrinking generally means people aren"t making as much money, and therefore have less to spend. From a business standpoint, efs affect interest and inflation (eg. price of goods increasing affects costs), causes financial uncertainty.
