The Interest rates, are added onto an

The economic decisions which are decided can either grow a business into a new section, where it’s achieving higher demands, or it will make a business not receive the figures it wanted, and force a business to shut down. Interest rates, are added onto an amount of money which is borrowed. The interest rates is the percentage rate charged on a loan. An increase in interest rates can affect a business in two ways; it can affect the customers who have debts, as they are paying more interest onto the money borrowed, then they originally borrowed. Overdrafts also have higher cost because, they now have to pay a higher interest. When Interest rates begin to change, this can impact the way a business runs. If a business produces a product which is high-earning, this can have a problem when interest rates rise. This is due to many customers wanted to drawback on non-essentials, when the income they receive will fall, and the cost of products will rise.
The exchange rate will affect business who trade and import materials. If the value of the pound gets depreciated, this will make the UK exports cheaper, and imports into the the UK will become more expensive. The rise in tax, will also affect the way a business works, this can have a positive and negative impact. If there’s a rise in corporation tax, which is the business profits this has the same effect if a business decides to increase the costs. The effect of this on the business, can lead them on passing some of the tax on to their consumers at a higher price but it will still have a result on the business on the long run. The Monetary Policy Committee, set the interest rates which also has an effect on the way the business runs. If there’s a rise in interest rates, the cost of a business borrowing money can significantly increase which can result in a business cutting off their partners if they cannot afford to pay the higher interest rates.
Ford announced preliminary full year 2017 adjusted earnings per share of $1.78, slightly up on 2016’s $1.76. But the Detroit-based automaker said it expects adjusted earnings for this year to fall to a range of $1.45-$1.70 per share. The economic side of Ford, produces figures which for other car companies are extremely hard to beat. This is a positive thing for Ford because, it shows that they have have a strong economical side to their business.
Referring to the table in the appendices, Ford have had an interesting decrease in the number of sales. From 1997,had around 3,877,458 sales, and in the market share they had around 25.02% in contrast, to this in 2016 they had 2,614,697 sales, which compared to 1997 is around a decrease of 1,262,761. However; many people still believe that Ford is still as popular as it was 20 years ago but,the figures above show that there is a decrease in the sales produced. As well, as a decrease in the sales their is a loss in the US market share, producing 14.20% in 2016, which is around 10.82% difference between 1997 to 2016.


I'm Gerard!

Would you like to get a custom essay? How about receiving a customized one?

Check it out