2.9 KiB
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:
- Food and non-alcoholig beverages
- Alcoholic beverages and tobacco
- Dress and footwear
- Housing
- Household
- Medicine
- Transport
- Communication
- Leisure and culture
- Teaching
- Hotels, cafes and restaurants
- Other goods and services
HCPI 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.