Different factors affecting a business.

Different factors that affect a business.

Wages:

Minimum wage, the lowest legal amount a person can be paid per hour. Businesses would pay people very little without it. what a business pays its workers is both an ethical and economic decision.  If it were to rise businesses would complain due to their costs rising. If this were to happen businesses would put their prices up and then the cost of living would go up. So if it were to rise then firms would sack workers as to avoid mounting costs. 

Exchange rates:

Exchange rates change according to currency. In china exchange is very low this is because they export lots of products. The bank of England prints money so that the exchange rate is lower, this means exporting is cheaper and importing is more expensive. Manufactures do well bus business that rely on imports suffer. 

Customer demand:

This can easily change and can cause problems for a business. Discount shops such as Poundland are doing well at the moment because customers don’t have much money to spend. this means that they want to buy the same things but at a cheaper price. This is also why Primark and Aldi are doing well.  When a country is in boom people like to treat themselves and spend more. There are still…