A Case Study on Inflation, Interest Rates and Business Confidence


1.1 Case : 1 Inflation

Definition : The rate at which the general level of costs for products and administrations is climbing, and, hence, acquiring force is falling. National banks endeavour to stop extreme expansion, alongside serious flattening, trying to keep the exorbitant development of costs to a base.

Answer:. Negative impacts:

1. They will lose the costumers.

2. There was a sharp increase in producer price but decrease the consumer price. .

3. Burger king loses the money from customer.

4. Some people facing the problems like taste, charge more money and they choose another option.

Positive points

1. If the trend is become popular then the people satisfied with the one slice

2. Moreover it Depend on the person to person or the mentality of the Person.

3. They consume time and get more profit by selling burger.

1.2Case:2 Interest rate

DEFINATION: Interest rate: "lessened premium rates sway individuals to use cash on home enhancements".

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Answer : According to me they must consider on their business of sac strand bags they have to design new products in the business which is more successful from new one like here in the case study it mentioned that a sac strand bags 50 store is new Zealand and 22 international market. They get more profit in the same business that already set up by using new materia textile, latest design, art that may attract more people and earn more profit in the business .But if we think it is good that they introduce new product line such as footwear, belts and jewellery. On the other side ,if they introduce their new product line ,they need more money to set up their business like loan from ANZID bank they charge more interest rate of 10% per month. If they expand the business they need more money and facing the problems. If they sell their products costumer purchase more products they get more profit and will be some companies put their share in the company

1.3 .Case :3 Unemployement

Definition : Unemployment is defined as a situation where someone of working age is not able to get a job but would like to be in full time employment.

Answer : Here are some of the largest Burger restaurant operations, low unemployment rate and:

• More consumer demand for goods, income high income elasticity of demand

• Labour market wage "reinforced" upward pressure on wage increases-/

• Do not improve or better workers, son of Charles • Martel – enhancing the capacity of potential impact extends to

• Improve safety and power companies, the momentum from wells

In order to solve this problem new Zealand government should launch this chain of restaurants in the new Zealand by giving more trade concession.

It will increase the opportunity because on restaurant if people work over that will get income and help to minimise the unemployment’s.

In order to deal with un employement government should developed the south land (south island industries and more people go over there because south island has great pentonrate for business and people don’t like to go over there because at natural disaster government should motivate people to go over there.

1.4 Case 4:Investment spending

Defination : Money spent on capital goods,or goods used in the production of capital , goods ,or services .Investment spending may include purchases such as machinery , land , production inputs , or infrastructure . Investment spending should not be confused with investment , which refers to the purchase of financial instruments such as stocks , bonds and derivatives . Also called capital information

Answer :

1.5 Case :5: Business confidence

Defination : An economic indicator that measures the amount of optimism or pessimism that business managers feel about the prospects of their companies/ organisations. It also provides an overview of the state of the economy. Example these can provide useful signs about the current condition of the economy ,because companies often have information about consumer demand sooner than government statisticians do.

Answer : In business, it is important that your product is any product material using this product this product is used. Glittering pink and they are doing very well in his company's products; so as to enable people to gain confidence in their own company would invest. They have very good sales of the company and their company will invest in individuals, they are good.

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1.6 Case :6 Share Market Fluctuation

Defination: The market in which shares of publicly held companies are issued and traded either through exchanges or over-the- counter markets. Also known as the equity market, the stock market is one of the most vital components of a free- market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership in the company. The stock market makes it possible to grow small initial sums of money into large ones, and to become wealthy without taking the risk of starting a business or making the sacrifices that often accompany a high-paying career.

Answer : In business, it is important that your product is any product material using this product this product is used. Glittering pink and they are doing very well in his company's products; so as to enable people to gain confidence in their own company would invest. They have very good sales of the company and their company will invest in individuals, they are good.

1.7.1 Credit availability, reduced loan (credit card) or the credit crunch is generally can borrow money from banks suddenly strengthened the necessary conditions. Credit crunch are usually credit independent of official interest rates, reduce the supply. In this case, the relationship between interest rates and credit availability and implicitly change the rate of available credit at any given official interest rates and credit availability is clearly the relation between them (due to credit rationing). In most cases, be accompanied by a credit crisis on lenders and the quality of their flight, less risky investments in pursuit of investors.

1.7.2 Gross domestic product (GDP) of the country's main pointers is used to measure the sound development of the economy. The total value of all goods and services, said produce within a certain period--economies of scale can be regarded. New Zealand's configuration and there is also growing demand for pizza making.

1.7.3 National income is the smallest business in developed countries. Countries will build most of the pizza business income countries the increasing number of visitors they have the desired business impact. US Government sales tax.

1.7.4 The money supply, they have money, you can use Western Union money transfer, provision and provide them with safety and security expert, and at the lowest price. They know how to manage money operations. Business class will grow to belong.

1.7.5 McDonald's and Burger King (BK), and in international trade, they have international operations. They are the most perfect state, and our franchise. High-speed Internet connection business development and growth in social media network is the best in the business.

1.7.6 Fluctuations in the stock market, the international market, the international market in the wave's impact. They are small to medium sized impact.

1.7.7 In foreign currency exchange rate fluctuations and low volatility, is that small businesses would be the highest level.

1.7.8 Balance of payments accounts States and all payments between monetary transactions accounting records of the world. On the trade, the country's exports and imports of goods, services, financial capital, will include transfer payments