Please enable JavaScript.
Coggle requires JavaScript to display documents.
Economic Climate - Coggle Diagram
Economic Climate
-
-
-
-
they may postpone wages rises, make workers redundant, reduce the amount of stock they buy
There will be fewer employees to choose from when hiring for a job, so businesses may need to offer higher wages
There should be more employees to choose from, so businesses don’t have to offer such high wages to employees
-
The type of product the business sells – Necessary goods are unlikely to be affected, but luxury goods are likely to see falling/rising sales.
-
-
-
• Train employees to be more productive, producing more output for the same cost
• Motivate workers using monetary and non-monetary motivation methods to improve their productivity.
-
-
-
• Run a marketing campaign to make people want the product that’s fallen in sales again and combat that fall in demand.
A fall in GDP, or weakening of the economic climate, means that businesses are making fewer sales.
As a result, businesses may cease to trade or may have to either:
-
-
-
The overall impact of this is to reduce employment (increase unemployment) and reduce people’s incomes.
-
-
• Consumer Income levels: The level of income received by people in a country is important for businesses because it influences how much money people have to spend on goods and services
• Employment and unemployment levels: influence income. A person in work will earn a wage or salary and will receive welfare benefits