Environmental Forces And International Business

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indictors to predict trends in their industry. Companies must borrow money occasionally and the inflation rate determines the real cost of borrowing. Inflation and interest rates are important in economic dynamics but not bottom line measures. Two important general measures of economic welfare are unemployment and the rate of growth in real per capita national income. When growth is slow, unemployment increases. The unemployment rate has a great impact. The level of imports is driven by the combination of the protection rate and the level of unemployment. When unemployment falls people seek more goods which are likely to be imported. Australia's real GDP is 4 per cent with an inflation rate of 2.2 per cent and unemployment rate of 7.5 per cent. Italy's GDP growth is 0.7 per cent, unemployment is 12.4 per cent and inflation is 4 per cent. Australia would be a better market at this time. Italy's employment rate and inflation rate being higher mean more people are not ...

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has been reduced to an internationally competitive flat 33 cents on the dollar. When goods are imported in the knowledge that they will be further processed in Australia and then exported, there is an export concession scheme which allows importation without the payment of import duty or sales tax. Inflation and interest rates have had a steady decline in Italy since 1992 which largely benefits the real economy of the country. The soundness of the Italian economic system has been proven by the success of external trade. Barriers still remaining in banking and insurance should be eliminated in the next two years. Italy is very attractive to foreign investors willing to establish ...

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