External environment - Economic indicators
Introduction
Businesses cannot be isolated from the outside world. Indeed they need to watch it carefully because it is the external environment that determines the demand for their product and therefore their profitability. Businesses therefore need to watch the various economic indicators constantly, but what do they all mean? In this section we look in more detail at each of the key indicators and what they mean. There is a basic overview explanation of each indicator, theories relating to them and a worksheet to see how well you have understood the issues.
- Explanation - what is meant by inflation, unemployment, economic growth and the balance of payments? What effect do they each have on business and why does business need to watch them carefully?
- Theories - a more detailed look at theories relating to unemployment, inflation, the balance of payments and economic growth. What determines the level of each of them?
- Worksheets - some worksheets looking at economic indicators to see how well you have understood them.
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