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Economic Forces of the Business - Coggle Diagram
Economic Forces of the Business
Government Influence
Monetary Policy
Rise or low interest rates
controls economic growth
Fiscal Policy
Stabalize prices
raise or low taxes
controls unemployment
International transactions
effects country's economy
Strengthen or Weaken country's currency
Expectation and Speculation
welfare of the Economy
Add liquidity in market
Risk bearing
Supply and Demand
impacts the price of goods & services
determine equilibrium price
Effects on business
Microeconomic level
increase prices
effect profitability
decrease sales
Macroeconomic level
Decrease Growth
effect economic system
decrease production
unemployment
Problems
increase inflation rates
increase in interest rates
increase Unemployment
Recommendations
improve manufacturing process
Manage sustainablity