Explain effects of changes in global economic environment

Reference no: EM131355718

1) Explain the effects of changes in the global economic environment can have on a selected business.

2) What is the business cycle? Explain all five stages of the business cycle? (Growth, Recession, Boom, Downturn and Recovery)

3) On the diagram below, label the stages of the business cycle.

Explain all 3 stages of the business cycle, and state what effect this would have on Davis PLC:

1. Recession

2. Boom

3. Recovery

4) What are the indicators of recovery?

Complete the table below:

Economic Environment - Scenario's	Explanation - Link to a business.
An increase in GDP - Explain what GDP is, and what effect an increase in GDP would have on your selected business.
A decrease in GDP - What effect would a decrease in GDP have on your selected business?
Trade Surplus - Explain what is meant by balance of payments. Explain what Trade Surplus is, and what effect a decrease in this would have on your selected business.
Trade Deficit - Explain what Trade Deficit is, and what effect an increase/decrease in this would have on your selected business.
Ripple Effect - Growth - Explain what a Ripple Effect is, and what effect growth would have on your selected business.
Ripple Effect - Recession - What effect recession would have on your selected business?

Reference no: EM131355718

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