# Which factors affect a business?

## Economical
- Growth
- Availability and distribution of Ressources
- Preisentwicklung (Inflation/Deflation)
- Politics, Taxes and Currencies

## Sociocultural
- Cultural Guidelines
- Educational level
- Demographical Factors
- Distribution of income

## Legal
- Political System
- Regulations
- Goverment/Laws
- Subsidies

## Technological
- Maturity of technology
- Availability and access to technology
- Technological innovations

# Economical
- Ressources, Demand/Supply

# Microconomical
- Specific marketsectors, wheat, oil, steel
- Business Spending

# Macroeconomical
- GDP, Inflation, Unemployment rate

**IMF - International Monetary Fond**
- Worlds largest financial institution
- Decisions affect many countries
- Loans money
- Control of exchange policies

# GDP

Measure of the material well-being of a society.

Its the value of goods and services produced within a country during a certain time period, mostly annual.

*Final Goods* are goods that are not meant for further processing but for consumption.

GDP = Consumer + Investment + Public Spending + Export/Import

*Consumption*: Food, Housing, Leisure
*Investment:* Raw Materials, Machines, Facilities
*Public Spending:* Infastructure, Health, Education
*Export-Import*: Outside Sales, Outside Buying -> Balance of trade

## Nominal GDP
- Current Prices (yearly)

## Real GDP
- Constant Prices (compared to base year)

# GNP

Produced by citizens of a country
Products which enter the 

Gross National Product

# **CPI** - Consumer Price Index

Measures the evolution of prices of goods and services consumed by the population resident in family homes in Spain.

How much is the cost of shopping?
Purchasing Power Indicator

Helps answer questions like:
*How much should we raise salary?*
*How much are the pensions going up?*

## How it is calculated?
Weighted Average of the Prices of a “shopping basket”

Products are sorted into 12 groups:
1. Food and non-alcoholig beverages
2. Alcoholic beverages and tobacco
3. Dress and footwear
4. Housing
5. Household
6. Medicine
7. Transport
8. Communication
9. Leisure and culture
10. Teaching
11. Hotels, cafes and restaurants
12. Other goods and services

**[HCPI](https://en.wikipedia.org/wiki/Harmonised_Index_of_Consumer_Prices)**
The Harmonised Index of Consumer Prices is an indicator of inflation and price stability for the European Central Bank. It is a consumer price index which is compiled according to a methodology that has been harmonised across EU countries.

# Inflation

Rate of Inflation is calculated by the change of the CPI.

Rising/Falling of the prices

*Why do the prices fluctuate?*

Theory: Demand vs Availability

### Inflation
- Loss of purchasing power
- Loss of competetivness

### Deflation
- Reduce in demand

# Unemployment Rate

It is the percentage of the active population which is not working.

6% is about the normal level at which there is equilibrium in the market for
work, depends on the country.