How Does Inflation Affect Businesses?

Answer

The business will be affected as the value of all required raw materials like oil, steel and copper increases. This will also have impact on turnover as there will be a fall in business due to increased prices. Inflation in the UK affects the businesses that try and sell abroad. Inflation makes it harder for businesses to sell goods and services because they are less competitive due to their high prices.
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Inflation is the gradual increase in prices of goods and services. Due to price increases the consumers purchasing power goes go down if wages are not adjusted ...
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Some of the external factors that affect business include: competition, social changes, legal restrictions or policies, technology, taxation issues and political ...
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