I asked this question in a lecture today and didn't completely understand the answer. I asked;
"what macroeconomic variables affect a firms vulnerability?"
The lecturer then said that macroeconomic variables, like GDP, affect a firms Revenue and do not affect its costs. Was he saying that it does not make a difference to the vulnerability of the firm as the cost curve is the same?
Also I was thinking more about Interest rates and Government spending and inflation and could someone give me a more through answer as to how these factors affect vulnerability?
Thanks in advance.
... and the ones that won't