The impact of the economic climate on businesses
The Activities in a country concerned with the making, distribution, and use of goods and services. includes all activities in a country concerned with the manufacturing, distribution, and use of goods and services. The The general level of wealth, consumption and activity within a particular area or region. has a big impact on businesses. The level of In business, a consumer is a person who uses a product and may also buy it. spending affects prices, investment decisions and the number of workers that businesses employ.
The economic climate affects businesses in six main ways:
- unemployment
- changing levels of consumer income
- changes in The price at which you can borrow money, or the return on how much money you can save.
- The rise in the price of goods and services.
- government taxation including national insurance contributions (NICs) and value added tax (VAT)
- changes in The value of one currency against another.