EasyBiz > Finance > Influences on Financial Management > Global Market Influences – economic outlook, availability of funds, interest rates
Economic outlook
- The projected changes to the level of economic growth throughout the world
- Positive outlook means world growth is forecast to continue.
- In a growing economy, business’ will experience increasing demand for products and services and find it easier to borrow.
Availability of funds
- The ease with which a business can access (ie borrow) funds in the international financial markets.
- The ability of a business to borrow will depend upon risk, demand and supply and the domestic economic conditions.
Interest rates
- The cost of borrowing - rates reflect the risk of the loan and the economic outlook.
- Currency fluctuations need to be taken into account when borrowing overseas.
Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.