• Research Paper on:
    Business and Economic Impacts

    Number of Pages: 5

     

    Summary of the research paper:

    In five pages business is examined in terms of the economic impacts of interest rate increase fears and growth uncertainty. Four sources are listed in the bibliography.

    Name of Research Paper File: TS14_TEecchng.rtf

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    Unformatted Sample Text from the Research Paper:
    are several concerns in regarding the economy. In considering two of these a better understanding may be gained for any business. There are concerns regarding the performance of the economy.  The pre-budget speech made by Gordon Brown has proven that the governments estimates were over optimistic meaning that the tax levels expected were not realised and to meet spending plans  borrowing will have to be increased. This may indicate rises in indirect, or even direct taxes in the future, the problem becomes on of uncertainty.  This increases the concerns for the economy where the biggest problem may be seen as that of uncertainty and fears that interest rates may have to rise  at the same time as seeing slower growth. The result is the need to reduce costs. One example of the current climate is overstaffing, and many companies such as AMP  may have to announce redundancies., This single large company made 1,5000 employees redundant in June 2002 and in December 2002 have announced another 1,900 redundancies (Bolger, 2002).  Planning in this environment becomes hard. The commitment required for investment may be limited if there are fears of decreased income. This creates a negative effect  in the economy as fewer companies and individuals want to make investments. The potentially lower levels of income mean that the investment may reduce profits to shareholders, the primary stakeholders  of the group. The result is a need to reduce costs and possibly cut capacity is sales fall. When sales fall there will  also be difficult decision regarding how to deal with the fall. The relationship between supply and demand shows that as demand drops the price should also fall in order to 

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