How do problems in the Eurozone economy and a weak Euro affect the UK? A weaker Euro would help European goods and European travel appear more attractive. It would be good news for British holiday makers not wanting to risk transatlantic flight with the Icelandic volcano still smoldering. It would not be good news for …
If you are studying for exams, you will hopefully, be learning that the value of a currency is generally influenced by factors such as: Interest rates – low interest rates lead to hot money flows out of economy and a weaker exchange rate. Relative inflation rates – Higher inflation makes a countries exports uncompetitive and …
Your ability to borrow money or borrow money on good terms is influenced by your credit score. This is an amalgam of your history with financial institutions, credit cards, store cards banks and other lenders. If you never borrow, never get into debt, always repay your credit cards 100% first time then you will not …
In 1945, 500,000 people worked as coal miners in the UK. Today that figure is a fraction. Maybe 1% of the half million are still employed as coal miners. By contrast Tesco now employs 500,000 people across Europe – making it the biggest employer in the EU. In 1945, the first supermarkets were yet to …
Greece is facing a very difficult situation with it’s bond market reduced to ‘junk bond status’ Interest rate on two year Greek bonds have an interest rate of 18%. See: European Fiscal Crisis Countries have experienced higher levels of government debt as a % of GDP. However, in the case of Greece, there appears a …
For manufacturing investment, the real interest rate is important for determining the viability of investment. Lower interest rates make it cheaper to borrow. Therefore lower interest rates tend to encourage business investment. High real interest rates discourage investment. How interest rates affect the efficiency of investment At lower interest rates, the marginal efficiency of capital …
Like quite a few teachers I am currently stuck on the wrong side of the Atlantic – waiting for a chance to fly back to Britain. I’m not sure when I will return to England, but, after an Easter break the blog will resume from today. Apparantely, there is one volcano, the memorably named, Eyjafjallajoekull …
SWOT analysis is a method to analyse the existing position of a firm and how it is likely to perform in the future S- Strengths of firm W- Weakness of firms O – Opportunities T – Threats Example, Waterstones booksellers Strengths Established as premier book retailer in UK Good distribution network Prime retail location in …