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economic influences - Coggle Diagram

- - - - workers demand higher wages = compensates for increase in cost of living
      - suppliers increase costs of raw materials and components
      - utilities more penny eg electricity
    - - interest rates rise as Bank of England uses base rate as a tool to control inflation = new and variable rate borrowing more expesnive
    - - deters consumers making significant purchases = reduced demand for usual lower price wants like cinema tickets
    - - cannot predict prices
      - survival needs to be key business objective until stability returns
- - - - high unemployment = easy to recruit but less disable spending means less customers
      - low confidence for firms = delay spending designs and reduce level of risk
      - low inflation = postpone significant spending designs to lower revenue
    - - descreasing unemployment = disposable incomes increase so higher sales revenue and staff retention more challenging so pay higher wages
      - high confidence = look to expand and maximise profit and production levels increased
      - increasing rate of inflation = interest rates rise and higher costs of borrowing increase risk of capital investment