Hantula Case Analysis

697 Words 3 Pages
Register to read the introduction… From his analysis, a number of the economic variables are found to have a directly bearing on the ability of a firm to successful expand its activities. They include recession, rate of inflation, levels of consumer income, monetary policy stability, and the cost of capital. Regions experiencing high inflationary pressure get characterized by relatively low demand for goods and services. Moreover, high cost of capital and unstable monetary policies discourage direct foreign investments in the economy. On the other hand, Awe (2006) asserted that fall in consumer income gets a companied by a significant drop their purchasing powers. As a result, it is preferred for businesses to expand their operations into regions characterized by low rate of inflation, affordable cost of capital, stable monetary policies, and high levels of consumer

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