Finance

: - Economic IndicatorsThis im reveal select five (5 ) economic indicators of sustain choice which argon believed to be important in determine coronation st rangegies As explanation for the reasons of why these various indicators atomic number 18 chosen get out be made including a introduce of their movements over the past 18 months to 2 long time . In addition this will also provide a herald as to where they may be over the next 1-2 long time and provide an explanation for the reasoning therebyThe economic indicators chosen are gas prices , interest rate unemployment level , inflation rates and gross national productThe choice of investment strategies will view upon the patience chosen as not all indicators will have the same effects on all industries . For this the diligence chosen is the car industry and it is assumed that any play along in the industry will be runed by the following indicators explained below for which it will need a outline . Gas price is chosen because gas prices can regulate the acquisition of cars . The greater the price of the gasoline the less bend would by cars , if all other things are equal . use up rates is chosen because an outgrowth of the same will affect the financial capacity of consumers then it could also affect occupy for cars by dampening the same in case of increase and criminality versa . Unemployment level is also important to the automotive industry since the higher(prenominal) the unemployment level , it could mean that consumers are less fit to bur cars because they will have less income . Inflation rate is chosen because it has an effect on the purchasing power of consumers . The higher the inflation rate the lower is the purchasing power of consumers and vice versa .

The GNP or GDP level is also chosen for this since the higher the GNP or GDP , the higher should be the purchasing power of consumersThe choice of investment strategy is premised on whether the coming years are favorable to the industry or not . Hence a car manufacturer will invest additional funds for expansion if it is expected that aim would increase in the coming years and will hurl investment if the opposite happens . It could also resort to divesting from its present investment if the industry will genuinely look very low-spirited in the coming yearsGas prices showed a marked increase in the first quarter of 2007 and up to the last quarter the real price of gasoline is almost maintained (See Exhibit A . For the next 2 years the same gas prices are expected to increase as an increase in entreat will push the same while bring home the bacon for supply increase cannot match the same . Interest rate showed a continued decrease starting from which appeared to have started from the latter part of 2007 (See Exhibit B . In the next 2 years it could still go down the Federal Reserve is arduous to avert recession in the US . The number of trifling in appears to show continued increase over the...If you ask to get a full essay, order it on our website: Ordercustompaper.com

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