Global Market Influences

Global Market Influences

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.