what did u guys put for the interest rates question, in particular for the part where u had to say that it wont affect them.
Affects them as rising interest rates could be start of a contractionary policy so will sell less items if people are saving/less aggregate demand. If they have a loan to expand will become more expensive to pay it back.
Won't be affected if they expand within their retained profits by interest rates. Depends on the elasticity of demand for the shoes whether they'd be affected in sales
Affects them as rising interest rates could be start of a contractionary policy so will sell less items if people are saving/less aggregate demand. If they have a loan to expand will become more expensive to pay it back.
Won't be affected if they expand within their retained profits by interest rates. Depends on the elasticity of demand for the shoes whether they'd be affected in sales
Affects them as rising interest rates could be start of a contractionary policy so will sell less items if people are saving/less aggregate demand. If they have a loan to expand will become more expensive to pay it back.
Won't be affected if they expand within their retained profits by interest rates. Depends on the elasticity of demand for the shoes whether they'd be affected in sales
That’s basically what I said as well. Also mentioned that it depends on what the proportion of their manufacturing is in the UK
I mentioned that they could be incentivised to save and deter capital/labour investment. Also that higher interest rates may lead to appreciation of sterling which could affect their export market ie. make it less competitive.
One question was explain if economies of scale are important to Nike. (12) but didn't really know how to say they weren't important. Think I said something about non-price competition as a counter to why they're not important.
I just mentioned dis-economies of scale
I also did non-price - the question said firms ''SUCH AS'' Nike, so I took it to mean I could talk about a different firm entirely that may not be looking to maximize sales volume as much. Hopefully, that's okay :/ Definitely one of if not the hardest question for me.
Affects them as rising interest rates could be start of a contractionary policy so will sell less items if people are saving/less aggregate demand. If they have a loan to expand will become more expensive to pay it back.
Won't be affected if they expand within their retained profits by interest rates. Depends on the elasticity of demand for the shoes whether they'd be affected in sales
I was tempted to write that last part, but does it !???? Less spending would affect all areas of the economy, no? Not just price elastic areas? I did, however, mention something similar in my conclusion, as the premium shoes likely meant the consumers found it to be a smaller proportion of their total income, etc and so still buy despite higher interest rates.
Ahh ok sorry to hear that. Think timing was the main issue with most people including myself but didn't think the questions were too bad. Nothing we can do now but wait for August .