Global Market influences

Global Market influences

1. Economic outlook: (global & Australia)

   • Business going well= more profitable, higher demand for goods/ services= ^ output+ ^profits
   • Interest rates usually lower
   • Business obtains finance easily= better able to pay off debts

2. Availability of funds

   • Influenced by:
     • Risk
     • Demand and supply
     • domestic economic conditions
   • ease in which business' can access funds from international markets

3. Interest rates

   • Business at risk of exchange rate movements
   • Business have access to International Finance & generally borrow money from countries with low interest rates