India as a developing country has a high inflation rate and a high interest rate. The inflation has been taking place due to an increase in demand of products without an increase in the supply- as India imports much of their produce, the limitations put up upon the amount of produce they purchase and the limitation of the produce they can afford to purchase from their weak currency has made the inflation increase and decrease drastically over the years.
The decreased amount of supply that India’s receives is due to their economy, as their employment rates are slowly rising – the demand and the resources to fulfil the demand are deemed ineffective as there is not enough employees/labour to manufacture the needed goods. And in the time of the …show more content…
The high interest rate is affecting India because the more disadvantaged and low income people are finding it hard to cope with paying the prices for food and water, which are basic necessities. On the other hand United Kingdom has a lower interest rate than India’s due to their economy, as the British have a strong pound – their currency is able to buy more products for their country and doesn’t need the economy to pay much for a profit. Also as the economy is improving due to many firms employing more applicants for jobs they are maintaining their inflation rates.
And as the Interest rate is low for the citizens who are storing their money in banks; they are receiving less for their money- so they are getting less amount of interest for their money. However as the interest rates are low- taxpayers are buying more properties as they are cheaper mortgages on …show more content…
Contrasting Economic Environments
From all the information collected above about the 2 different countries and their relating economical factors, now I am going to compare Zan Fish- fish bar shops and a whole seller that is only based In Derby to a huge renowned business in India: Tata motor.
Zan fish is a small business which operates from Derby and currently owns 5 small shops which are situated in different parts of this town. The owner of the profitable Zan Fish: by Nickos Zannetou is sole trader, he is personally liable for his firms debt, and he will have to pay them out of his own pocket- this may include his assets if he is unable to cover any of his business debts. The degree to which owners are liable for their business debts plays a big role in the size of the business. Unlimited liability tends to keep the ownership of the business relatively
The decreased amount of supply that India’s receives is due to their economy, as their employment rates are slowly rising – the demand and the resources to fulfil the demand are deemed ineffective as there is not enough employees/labour to manufacture the needed goods. And in the time of the …show more content…
The high interest rate is affecting India because the more disadvantaged and low income people are finding it hard to cope with paying the prices for food and water, which are basic necessities. On the other hand United Kingdom has a lower interest rate than India’s due to their economy, as the British have a strong pound – their currency is able to buy more products for their country and doesn’t need the economy to pay much for a profit. Also as the economy is improving due to many firms employing more applicants for jobs they are maintaining their inflation rates.
And as the Interest rate is low for the citizens who are storing their money in banks; they are receiving less for their money- so they are getting less amount of interest for their money. However as the interest rates are low- taxpayers are buying more properties as they are cheaper mortgages on …show more content…
Contrasting Economic Environments
From all the information collected above about the 2 different countries and their relating economical factors, now I am going to compare Zan Fish- fish bar shops and a whole seller that is only based In Derby to a huge renowned business in India: Tata motor.
Zan fish is a small business which operates from Derby and currently owns 5 small shops which are situated in different parts of this town. The owner of the profitable Zan Fish: by Nickos Zannetou is sole trader, he is personally liable for his firms debt, and he will have to pay them out of his own pocket- this may include his assets if he is unable to cover any of his business debts. The degree to which owners are liable for their business debts plays a big role in the size of the business. Unlimited liability tends to keep the ownership of the business relatively