How Does the External Environment Affect Business

question 83

Essay

How does the external environment affect business?

Identify the relationships between different accounts in the balance of payments.

Understand the supply and demand dynamics in the foreign exchange market.

Assess how changes in exchange rates affect global trade dynamics.

Analyze the causes and effects of changes in exchange rates over time.

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Definitions:

Selling And Administrative

Expenses related to the selling of products and the management of business operations, not directly tied to production.

Supervisor Salaries

The compensation paid to employees who oversee and manage other workers or operations within a company.

Maintenance

The work done to keep machinery, equipment, or a structure in a condition of efficiency or safety through routine checks, repairs, and cleaning.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used by businesses to manage liquidity.