• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Report on interest rate, exchange rate and inflation report on Safeway Plc.

Extracts from this document...

Introduction

To: Mr Elkon From: Karan Varma Date: 20th June 2004 Report on interest rate, exchange rate and inflation report on Safeway Plc To Mr Elkon 1.1 In this report I will talk to you about three different rates, can effect Safeway and if the effect will be good or bad. I will be talking about > Interest rate > Exchange rate > Inflation Interest Rate 2.1 The government decide by how much the interest rate moves either up or down. The government have two way of affecting the economy they are the fiscal policy and monetary policy. 2.2 I will be talking about the monetary policy it involves changing rate. ...read more.

Middle

Higher interest rate in the UK results in savers from abroad putting their money in UK banks. To this they will need to buy pounds, and this make pounds more expensive. This will be good for farmers across the world that export groceries product from the Asia and South America continents, country that are normally hot because it will be cheaper for Safeway to buy from others continents or to buy imports. It wont be good for Safeway if theys is low interest rate as they will suffer. Exchange Rate 3.1 An exchange rate is simply the price at which one currency can be traded for another currency. ...read more.

Conclusion

This is the reverse of everything I had said about if they were strong pond. Inflation 4.1 The unemployed suffer most from unemployment, Safeway does suffer the most from inflation. If a business do well like Tesco, Asda then they will be more people employed. The government believes that the best way to solve unemployment is to try to have low inflation rate for companies like Safeway. 4.2 Inflation does make it difficult for Safeway because they have to constantly changing they prices this mean reprinting the cost and explaining to the customer why the prices have gone up. 4.3 In the 1980's the inflation was at it highest ever over 15% the highest it's been over the past 24 years. Today the inflation rate is about 2.5% and it's very difficult for the government to decrease the inflation rate. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. What might cause an appreciation of a floating exchange rate? Discuss whether an appreciation ...

    Growth of exports is likely to slowdown. A loss of market share may occur and this loss of export market share may be difficult to recover. When the prices of exports rise from P1 to P2 quantity demanded will fall less than proportionately because of price elasticity from Q1 to Q2.

  2. Retailing In India - A Government Policy Perspective

    differs fundamentally from India. Its official attitude to FDI, reflected from the highest level of government (PM, President) to the lowest level of government bureaucracy (provinces) is one of consciously enticing FDI with a warm welcome. They recognise the multifaceted and mutual benefits arising from FDI.

  1. Morrison's and Safeway Acquisition

    Pre-takeover, Safeway and Morrisons were two completely different supermarkets in terms of regional location and product range. Customers who are used to Safeway's range and products and the image it had due to higher prices are going to be left with Morrisons, a northern supermarket who believes in lower prices.

  2. When Morrison took over Safeway who benefited?

    But, for example if Tesco's bought Safeways the supermarket market would basically be a monopoly, with one company controlling way over a quarter of the shares, whereby leaving no room for competition and giving one company all the power. Firms seek to grow larger for many different reasons, some of

  1. Debt Sustainability and the Exchange Rate: The Case of Turkey

    or other means (4%); 9% of the debt is owed to international institutions and the remaining 13% ($19.9 billion) is owed to the IMF. Considering domestic debt stock alone, we see that 52.8% represents the Treasury's indebtedness toward other public institutions and 47.2% represents the Treasury's indebtedness toward the market.

  2. Review of Strong Interest Inventory.

    Scores on these scales represent a global view of an individual's vocational and life-style interests. You may have one, two or three letter code. Although some people do not indicate interests in any of the Themes, or in only one of them, most show an average or a high degree of interest in two or three of them.

  1. Marketing Plan: Handywares Plc.

    Full Product Line Handywares currently operates a full and varied product range that it will be able to transfer to its desired overseas market. Handywares believes that if it can fulfil all of a consumer's homeware needs then they will be less likely to notice an alternative.

  2. Exchange Rates and their Effect on Morocco Report.

    This can be a specific target as was the case before euro notes came into circulation when a punt would buy you 1.27 euro. Or countries might set up and lower limits which they will not let the currency go.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work