Page 14 - eBook: EXIM for Beginner

b) Economic factors

When we talk about economic considerations, we
are referring to the aspects of a country's economic

performance that have an impact on business. It is usual
for businesses to benefit from outstanding economic

performance, whereas economic recessions can be
disadvantageous to a corporation.

Economic growth rates, exchange rates, interest
rates, inflation rates, unemployment rates, and the
economic profile of the population, including disposable

incomes, are all factors to consider. For example,
consumer purchasing power will almost certainly have an

impact on a company's profitability.

The economic environment can have a significant

impact on businesses by influencing demand and supply
patterns. Companies must keep track of and monitor
relevant economic indicators over time.