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economic influence

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Introduction

Economic influence report Mr Elkon Vishal Kumar 10x5 24th July 2007 Economic influence report In this report I will be writing about the inflation rate and also describing it by what it actually is and also I will be writing about the current rate and how this will affect British Airways and what there response is to this. Inflation is when the price rises within a short period of time. The current rate of Inflation is 3.1% and the government wants it to be downgraded to 2.1% which is not quite a lot. This is affecting British Airways as they will need to pay more money for their fuels and other materials they will need in future for there business to commence on forward. This is also affecting British Airways as their customers will need to pay more money to them for their tickets and because of this reason ...read more.

Middle

And if on the other hand the Inflation rate goes down then British Airways will hire more staff because they will have the money to give to them and also they will be inviting more customers in which will result into more profits to the company and also this will mean that the tickets fares will also drop indeed for the customers to fly with British Airways. Exchange rate is the rate at which a bank or other financial intermediary will exchange one country's currency for another. The current rate at the moment is $2.05 at the moment for every one pound so that means that it Is okay and that more customers will go on board with British Airways because of the exchange rate is quite reasonable and that people will get more money for the amount of pounds they put in so if the put in �2 they will get double $2.05 in America so that will mean that they will get more money there compared to here. ...read more.

Conclusion

The current rate on the interest rate is 5.75% and this is quite a lot because if British Airways borrow money from the bank and they get a delay in returning the money then they will be charged interest on to their loan and then they will have to pay more money to them and not the same amount that they first asked for from the bank and if the interest rate is too high then they will be charged more money and on the other hand if it is low then it will be quite good because not so much money will be added on to the loan as interest rate. They should be responding back to this as they should be giving the money back quickly and also they should be looking out for a bank that has a cheaper interest rate then other banks. ?? ?? ?? ?? Vishal Kumar 10x5 Vishal Kumar 10x5 ...read more.

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