Question

Reflect on some of the external financial forces in the environment that may impact on the success of your business. Include in your discussion, domestic and international factors ( i.e. recession, inflation rates, interest rates, unemployment rate, GNP, GDP, etc).

the Qoussion is:

how you plan to minimize the negative effects and maximize the positive effects of these financial forces on your business venture.

Answer 1

Both domestic and international forces may impact the business either positively or negativeley. For an example recession is an economic stagnat condition where nations couldnt drive more on sales as there will be minimal transactions happening because of less monetary value for the currency.Other indices like GRP where Gross domestic product comes into picture where a countrsy growth is determined by value of their export and import. Thse countirrers who create more export values can leverage the indices like GDP alot.The same goes for GNP.

Minimisation of negative effect can be done strategic planning and forecasting . Countris like BRIC nation who invest well in advance on human resource and technology have improved a lot in their financial or economical background in last two decades. Wisely utilising the globalisation effect, explore business in new areas and innovation and cost opitmisation programs etc can reduce the negative impact. Invest more on the opportunities which has susitainability features and develop own stratgies which other nations found diffiuclt to copy and replicate. Thus uniqueness, value based ofrecasting is essential at the stage of planning ande design. Proper controlling and monitoring of all trade and financial activites helps in curbing the cost and other leakgaes.