Please enable JavaScript.

Coggle requires JavaScript to display documents.

Economic Influences - Coggle Diagram

- - - - SPICED - Strong Pound Imports cheaper, Exports dearer
        firms that import will be able to buy cheaper raw materials firms that export will see less demand
        
        WPIDEC - Weak pound Imports dearer exports cheaper
        Great demand from abroad for UK goods
        Input prices will increase if raw materials imported
        If firm has price inelastic products - pass on increase in costs to consumer
        
        Prices will change regularly if firm trades with foreign business - impact competitiveness, cost, revenues, profitability
- - - - if interest rates are high - saving is more favorable and spending less attractive - affects customers willingness to spend on credit -
        Will have less disposable income - high mortgage payments and therefore a fall in demand for other products
        Higher interest rates mean that foreign investors will invest in UK banks for higher returns and therefore an increase in demand for the £ will see its value appreciate – making exports dearer
- - - - Budgets allocated to public sector organisation - affect demand for suppliers to these organisation
      - Spending on infrastructure will generate employment increasing incomes - general level of demand