Economic factors and how theses affect businesses

Businesses can be affected by several aspects of the environment they are situated within. Some examples of this could include the recession, tax rates and the location of the business. Here are some economic factors and why the affect a business:

• Import/Export - If the exchange rate goes up then a business may not be able to afford to import and export products.
• Exchange rates - when the exchange rates are high, customers and sales will decrease making the profit go down.
• Trends - Trends change within a society and businesses try to match their products to suit the trend
• Location - If it is a very populated location then it is likely to receive more customer attention than others.