P5 BTEC Level 3 unit 38
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 supported loans which have come with strict conditions attached. By Greece defaulting this could spell the end of the euro, which can have a great affect on all economies around the world, this could result into an extension to the current recession because countries could be seen as an uncertainty to pay back, this will increase the borrowing cost and they may even increase to unafthe businessable rates beyond 5%, a consequence loan may dry up leading to countries not importing goods because they can not afthe business this. This would affect The business because consumers would only look to purchase essentials and buying a car would be seen as a luxury.
A major fault in the Eurozone is that all countries will have to have the same interest rates, which is not good because they all have different very different economies. A prime example is that countries like, Germany and France have lot stronger economies than the PIIGS, which stands for Portugal, Italy, Ireland, Greece and Spain. The current EU base rate is 0.250%, which wills suite countries like the PIIGS, but it will also halt the progress of France and Germany. However the UK can change their base rate, which is controlled by the Bank OF England, the current base rate in the
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 supported loans which have come with strict conditions attached. By Greece defaulting this could spell the end of the euro, which can have a great affect on all economies around the world, this could result into an extension to the current recession because countries could be seen as an uncertainty to pay back, this will increase the borrowing cost and they may even increase to unafthe businessable rates beyond 5%, a consequence loan may dry up leading to countries not importing goods because they can not afthe business this. This would affect The business because consumers would only look to purchase essentials and buying a car would be seen as a luxury.
A major fault in the Eurozone is that all countries will have to have the same interest rates, which is not good because they all have different very different economies. A prime example is that countries like, Germany and France have lot stronger economies than the PIIGS, which stands for Portugal, Italy, Ireland, Greece and Spain. The current EU base rate is 0.250%, which wills suite countries like the PIIGS, but it will also halt the progress of France and Germany. However the UK can change their base rate, which is controlled by the Bank OF England, the current base rate in the