THE IMPACT OF INFLATION ON BUSINESS

THE IMPACT OF INFLATION ON BUSINESS (ВЛИЯНИЕ ИНФЛЯЦИИ НА БИЗНЕС)

Inflation can adversely affect business in a number of ways:

1. Accounting and financial problems. Трудности бухгалтерского учета и финансирования

Significant rates of inflation can cause accounting and financial problems for businesses. They may experience difficulty in valuing assets and stocks, for example. Such problems can waste valuable management time and make forecasting, comparisons and financial control more onerous.

2. Falling sales. Снижение объема продаж

Many businesses may experience falling sales during inflationary periods for two broad reasons. Firstly, it may be that saving rises in a time of inflation. We would expect people to spend more of their money when prices are rising to avoid holding an asset (cash), which is falling in value. However, during the mid-1970s, when industrialized nations were experiencing high inflation rates, savings as a proportion of income rose! It is not easy to identify the reason for this, but some economists suggest that people like to hold a relatively high proportion of their assets in a form which can be quickly converted into cash when the future is uncertain. Whatever the reason, if people save more they spend less and businesses suffer falling sales. The economic model predicts that if savings rose the level of activity in the economy would fall. Clearly, if this happened we would expect businesses to experience difficulty in maintaining their levels of sales.

I Businesses may be hit by a reduction in sales during a time of inflation for a second reason. As inflation progresses, it is likely that workers' money wages (that is, wages unadjusted/or inflation) will be increased broadly in line with inflation. This may well take a worker into a higher tax bracket and result in a higher percentage of his or her wages being taken as tax. This process, known as fiscal drag, will cause workers to have less money available to spend on firms' goods and services. The poverty trap has a similar impact. As money wages rise, the poor may find that they no longer qualify for state benefits to supplement their incomes and at the same time they begin to pay income tax on their earnings. Again, this leaves less disposable income to spend on the output of firms. Finally, it may be that the wages of many groups are not index-linked and so they rise less quickly than the rate of inflation, causing a reduction in spending power and demand for goods and services.

Once again, the economic model can be used to predict that increases in the level of taxation will increase withdrawals, lowering the level of economic activity and depressing firms' sales

Not all businesses will suffer equally from declining demand in an inflationary period. Those selling essential items, such as food, may be little affected whilst others supplying less essential goods and services, such as foreign holidays, may be hard hit.

3. High interest rates. Высокие процентные ставки

Inflation is often accompanied by high interest rates. High interest rates tend to discourage investment by businesses as they increase the cost of borrowing funds. Thus, investment may fall. Businesses may also be dissuaded from undertaking investment programmes because of a lack of confidence in the future stability and prosperity of the economy. This fall in investment may be worsened by foreign investment being reduced as they also lose some confidence in the economy's future.

Such a decline in the level of investment can lead to businesses having to retain obsolete, inefficient and expensive means of production and cause a loss of international competitiveness. Finally, a fall in investment can lower the level of economic activity, causing lower sales, output and so on. Thus, to some extent, businesses can influence the economic environment in which they operate.

4. Higher costs. Рост издержек производства

During a bout of inflation firms will face higher costs for the resources they need to carry on their business. They will have to pay higher wages to their employees to compensate them for rising prices. Supplies of raw materials and fuel will become more expensive as will rents and rates. The inevitable reaction to this is that the firm has to raise its own prices. This will lead to further demands for higher wages as is called the wage-price spiral. Such cost-push inflation may make the goods and services produced by that enterprise internationally less competitive in terms of price. An economy whose relative or comparative rate of inflation is high may find that it is unable to compete in home or foreign markets because its products are expensive. The economic model tells us that a situation of declining exports and increasing imports will lower the level of activity in the economy with all the consequent side-effects.

Результаты (русский) 1:

ВЛИЯНИЕ ИНФЛЯЦИИ НА БИЗНЕС (ВЛИЯНИЕ ИНФЛЯЦИИ НА БИЗНЕС)Инфляция может отрицательно повлиять на бизнес в несколько способов:1. бухгалтерские и финансовые проблемы. ТРУДНОСТИ БУХГАЛТЕРСКОГО УЧЕТА И ФИНАНСИРОВАНИЯЗначительные темпы инфляции может вызвать бухгалтерские и финансовые проблемы для бизнеса. Они могут испытывать трудности в оценке активов и запасов, например. Такие проблемы можно тратить ценные управления время и сделать прогнозирования, сравнений и финансового контроля более обременительными.2. падение продаж. СНИЖЕНИЕ ОБЪЕМА ПРОДАЖMany businesses may experience falling sales during inflationary periods for two broad reasons. Firstly, it may be that saving rises in a time of inflation. We would expect people to spend more of their money when prices are rising to avoid holding an asset (cash), which is falling in value. However, during the mid-1970s, when industrialized nations were experiencing high inflation rates, savings as a proportion of income rose! It is not easy to identify the reason for this, but some economists suggest that people like to hold a relatively high proportion of their assets in a form which can be quickly converted into cash when the future is uncertain. Whatever the reason, if people save more they spend less and businesses suffer falling sales. The economic model predicts that if savings rose the level of activity in the economy would fall. Clearly, if this happened we would expect businesses to experience difficulty in maintaining their levels of sales.Я бизнеса возможно попадание снижение продаж во время инфляции по второй причине. По мере инфляции это, вероятно, что рабочие деньги заработной платы (то есть заработная плата нескорректированные / или инфляции) будет увеличена в целом с учетом инфляции. Это может занять работник в выше налоговые кронштейн и результат в более высокий процент его или ее зарплата, принимаются как налог. Этот процесс, известный как налогово-бюджетного торможения, приведет к работникам иметь меньше денег тратить на товары и услуги фирм. Ловушки нищеты имеет аналогичные последствия. Как повышение зарплаты деньги, бедных может оказаться, что они больше не претендовать на государственные пособия в дополнение к их доходов и в то же время они начинают платить подоходный налог на их доходы. Опять же это оставляет меньше располагаемый доход тратить на выходе фирм. Наконец может быть, что заработная плата многих групп не индексируется, и поэтому они повышаются медленнее, чем темпы инфляции, вызывая сокращение расходов энергии и спроса на товары и услуги. Опять же экономическая модель может использоваться для предсказать, что увеличивает уровень налогообложения будет увеличиваться снятий, снижение уровня экономической активности и угнетающие фирм продажНе все предприятия будут одинаково страдают от снижения спроса инфляционного периода. Те, продажи предметов первой необходимости, таких как продукты питания, могут быть мало затронуты в то время как другие поставки менее основных товаров и услуг, таких как иностранные праздники, могут сильно пострадали.3. High interest rates. Высокие процентные ставкиInflation is often accompanied by high interest rates. High interest rates tend to discourage investment by businesses as they increase the cost of borrowing funds. Thus, investment may fall. Businesses may also be dissuaded from undertaking investment programmes because of a lack of confidence in the future stability and prosperity of the economy. This fall in investment may be worsened by foreign investment being reduced as they also lose some confidence in the economy's future. Such a decline in the level of investment can lead to businesses having to retain obsolete, inefficient and expensive means of production and cause a loss of international competitiveness. Finally, a fall in investment can lower the level of economic activity, causing lower sales, output and so on. Thus, to some extent, businesses can influence the economic environment in which they operate.4. Higher costs. Рост издержек производстваDuring a bout of inflation firms will face higher costs for the resources they need to carry on their business. They will have to pay higher wages to their employees to compensate them for rising prices. Supplies of raw materials and fuel will become more expensive as will rents and rates. The inevitable reaction to this is that the firm has to raise its own prices. This will lead to further demands for higher wages as is called the wage-price spiral. Such cost-push inflation may make the goods and services produced by that enterprise internationally less competitive in terms of price. An economy whose relative or comparative rate of inflation is high may find that it is unable to compete in home or foreign markets because its products are expensive. The economic model tells us that a situation of declining exports and increasing imports will lower the level of activity in the economy with all the consequent side-effects.

Результаты (русский) 3:

Влияние инфляции на бизнес (влияние инфляции сервис бизнес)ветровому инфляции может негативно повлиять на бизнес-по-разному:ветровому 1. бухгалтерского учета и финансовых проблем. Трудности бухгалтерского учета и финансирования

значительные темпы роста инфляции может привести к бухгалтерского учета и финансовых проблем для предприятий малого бизнеса.Они могут столкнуться с трудностями в стоимостной оценке активов и рыб, например. Такие проблемы могут терять драгоценное время и сделать прогноз, сравнения и финансового контроля более обременительной.ветровому 2. Падение продаж. Снижение объема продаж

многие предприятия могут столкнуться падение продаж в течение инфляционного периода для двух широких причин. Во-первых,Возможно, что сохранение поднимается в период инфляции. Мы хотели бы получить людей тратить больше денег при цены для того, чтобы избежать проведения актива (наличными), который является снижение стоимости. Вместе с тем, в период с середины 1970-х годов, когда промышленно развитые страны испытывают высокие темпы инфляции, экономия средств в качестве доли дохода закрывается! Это не просто определить причины этого,