It does so by managing the interest rate. Inflation is defined as a persistent increase in the average price level in the economy, usually measured through the calculation of a consumer price index (CPI). High interest rates will affect both investment and consumption, which will affect the aggregate
The oil price increase may affect the economy activity, especially in the increase in the cost of production of goods and services, which in turn may influence the inflation rate, consumer confidence, and financial markets. Inflation happen will be transposed to consumer which eventually reduce their purchasing power and investment. During oil crisis in 1973-1974, a decline of stock prices is interpreted by the increase in oil prices and it indicate that oil price change may lead to stock market returns volatility (Bina & Vo, 2007). Crude oil price is the primary fuel of industrial activities and plays a significant role in shaping the economic and political development of the countries, not only by directly influencing the aggregate indicator but also by affecting the companies’ operational costs and its revenue. When the stock market is efficient, positive crude oil price shocks would adversely impact the companies’ cash flows and market values, lead to immediate decline in the overall stock market returns (Hamilton, 1983).
Could you possibly imagine how this government action would impact the economy as a whole? To understand the ups and downs of the economy it is imperative to understand the connotation of inflation, its harms to the economy, and deflation in the Business Cycle. Inflation is defined as a prolonged increase in the general level of prices, and this has a direct impact on the purchasing power and the economy’s health. It is a result of an economic boom or peak (stimulated by various factors) when aggregate demand rises faster than supply can increase. In Econland, the monetary policy that increased money and credit supplying led to inflation.
Macroeconomic policy is a framework of a set of rules and regulations that the government implements to control the nation’s economy, unemployment rate, inflation, recessions, money supply, growth rate, interest rate, and many more. The two main monitoring macroeconomic policies are: • Fiscal policy • Monetary policy What is fiscal policy? The spending policy implemented by the government that would affect the macroeconomic factors of the nation is known as fiscal policy. These policies control the nation’s unemployment rate, inflation, people’s buying behaviour determining to control the economy. In order to implement the fiscal policy, the government might reduce the taxes, which would let people pay less money on taxes and invest it somewhere
Introduction Success of a company depends on many aspects like the industry selection, resource assessment, resource management, strategic direction etc. In this paper, case named as Male Grooming is given and the analysis of different areas will be taken on the basis of case. The paper includes an analysis of internal and external factors and SWOT analysis of the company to determine its present and future marketing planning. The whole analysis is conducted by marketing consultant who is working for Fragrance Direct, and assigned to make a report for marketing director. Internal and External Factors Fragrance Direct is an internet based retailer company that serves fragrance for male and female with discount offers.
Hypothesis Most studies of gender with respect to products have viewed it as an explanatory variable for consumer behaviour. When examine the gender in design, feminine also have masculine qualities and masculine also have feminine qualities. Because of that an opportunity when designing products concern end user satisfaction. Methods and methodology Case- study
The first one is cost of production- cause if the cost of any factor of production decreases, the quantity that producers are able to supply at a given price increases. Second is changes in government policy, as in government spending and taxation influence employment and household income, which dictates consumer spending and investment. Third one is changes in the numbers of producers increased demand to increased supply, decreased demand so it will decrease supply. There is also two terms you need to know about supply elasticity, one is if supply is elastic, a change in the price will cause a change in the number of items produced. The other is inelastic, a change in the price will not cause a change in the number of items produced.
Personality and self-identity play a central role in consumer behavior. Consumers use brands to communicate various aspects of themselves. We discussed about aspects of self, the extent to which these aspects are emphasized and primary function of self-concept in each approach (Szmigin, 2014)
Economic factors: This includes the determinants of an economy and its condition. Such as the inflation rates or interest rates. 3. Social Factors: The different mindsets within a country which casts an impact on a business and the sales of its products and services. These include the culture, age, race, and even social lifestyles.
The inflation rate is an important figure to measure an assumption of feature competitiveness and quality due to its effects on the prices of goods. Inflation rate affects company's investments on quality development, which will affect the competence level of the company. For instance, Germany had a low inflation rate after the world which helped the countries investments on quality and increased competitiveness. To add on, taxations is a major factor in determining competitiveness and quality. In a certain country for example, taxes are high, the cost of labor will increase in which competitiveness and quality might be affected.