Exchange rate
Expressing the value of one currency in terms of another.The business which are involved in international trade will be affected by exchange rate.
Expressing the value of one currency in terms of another.The business which are involved in international trade will be affected by exchange rate.
Inflation
A continues increasement at the general price level of an economy is called as inflation.
Inflation will be measured by different indexes.Inflation will affect the business in different ways.
Advantages
*With the price increasement the business will be able to increase the prices therefore business can get profitsby selling different products.
Disadvantages
*Demand for luxury products will falls.
*Cost of production will increase as they have to provide highier prices for factors of productions.
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