Economic factors comprise the information that influences the value of an investment or business. When you are calculating the present and anticipated future value of an investment portfolio or a business, the economic factors are what you bear in mind. The primary economic factors are management, taxes, government policy, interest rates and labor costs.Continue Reading
Labor costs are an economic factor that has led many companies to outsource many of their basic functions to sites outside the United States. In many countries, especially in South and Southeast Asia, American companies have established factories, call centers and other facilities to handle many of their operational functions because workers there are much cheaper to hire.
Interest rates are more a factor for investment portfolios than businesses. When interest rates are higher, many investors turn to more secure vehicles, such as certificates of deposit, but when rates go down, some investors are willing to take on more risk through investments that lack government protection.
Government policy and taxes make up another reason why businesses choose particular states and countries for incorporation. The corporate tax structure in Delaware, for example, causes many firms to set up headquarters in that state, even though the primary business may be far across the country.
Management is a factor specific to each company. Businesses with effective management are much more likely to prosper and, therefore, are a stronger investment idea.Learn more about Economics
To write an investment proposal, create a written pitch that clearly states the value that investors can receive from the proposal, how resources are to be used and any other important relevant information. It should also include a detailed account of the business or project, an estimation of the returns on investment and a schedule.Full Answer >
The advantages of niche marketing are focusing on more profitable market segments, ability to establish solid relationships with members of a market segment and increased return on investment for marketing dollars. Disadvantages of niche marketing include increased difficulty in exposing a product to a broad spectrum of consumers, inability to create mass market appeal and limited sales potential. The effectiveness of niche marketing depends on the product.Full Answer >
In the investment community, the primary market refers to the market where securities are created, while the secondary market is the stock market where investors trade securities that they already own. While these terms sound similar, they refer to two very different things.Full Answer >
Urban decline is the deterioration of a city as a result of poor maintenance and lack of investment. The characteristics of urban decline include increased unemployment rates, decreased economic performance, and poor housing and health facilities.Full Answer >