The Economy Essay -- Economics

The EconomyEconomic Factors involvement RatesAn interest rank is the rate of increase over succession of a bank depositInflationInflation is persistent increase in the level of consumer prices orpersistent come down in the purchasing power of money.Exchange RatesThe exchange rate is the price of one currency when traded withanother. For Example, 1 allow for approximately buy the followers at agiven point in time1.50 Euros2.70 Australian Dollars1.60 US DollarsImpact of changes on WFPRising interest rates Rising Interest Rates will work to thedisadvantage of West bring Printers. They will have to pay more amountof money on loans and, as a result, their expenditures will increase.Falling interest rates Falling Interest Rates will benefit West FerryPrinters. It can adopt an aggressive foodstuff strategy by reducing theprices of its products and enhance its market shareIn a situation involving a high rate of inflation, West Ferry Printerswill not be able to plan its finances accura tely. If the company isleft with less money it will not be able to pay its mental faculty decentremuneration for their services. Disputes may occur if workers areunable to secure wage increases to sustain their standard of living.Like any other business, West Ferry printers will be better off ifrate of inflation stays within the normal range. West Ferry Printerswill have ample time to devise their costing and other planscarefully. Low in...