Essay on P5 BTEC Level 3 unit 38

1402 WordsApr 14, 20146 Pages
P5- In this task I am going to look at how The business are impacted by European and international factors, I will also look at what impact these factors cause The business The first implication that will impact The business is the European Union, which has been in a deep recession this is because consumer demand has fallen, whilst unemployment rates are increasing across the European union. This has caused great concern to global markets as the possibility that Greece may not be able to pay of their outstanding debts, this could result into the them defaulting the Eurozone, however there is some stability but this situation is very delicate because the European Central Bank and also the International monetary fund, have…show more content…
Interest rates in the EU and UK will affect The business because if the base rate are low this is good because it will allow consumer to get cheaper loans allowing them to purchase the business luxuries like items, also it allows people to finance cars cheaper because the base interest rate is low. The exchange rate will could work as a benefit to the business this is because if other countries currency is weaker than the US this will mean they will look to sell there for more profit because they will have to pay foreign currency for the product. So if the Euro exchange rate falls this could be seen good because it will mean that countries in the Euro will have to pay more for The business cars, however this can cause more problems for The business because it will mean that some consumers may not be able to afford the companies products. However another advantage is that this would mean that they could have cheaper parts from the suppliers because the exchange rate has fallen. In the European union there are many different rules that you have to comply with to get one of them is the Common Agricultural Policy (CAP), which attempts to rationalise farming and the production of food and other farmed produce, this is done by allowing subsides to be paid to farmers to grow certain crops, however money spent in the EU can not be spent on reliving unemployment, which is a major concern in all EU states. I am going to look at how

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