External Influences - Financial

Financial influences refer to the movement of money and value in various markets (stock market, bond market, currency exchange markets, commodities markets) which impacts individual businesses.

Businesses require finance to grow. The cost and availability of this finance depends upon the current state of financial markets. Global financial markets are ‘contagious’; if market crashes in US, it is likely to flow into other global markets, affecting financial position of individual businesses in Australia.

Interest rates can change (the cost of borrowing money); global interest rates influence domestic rates of individual nations.

Movements in the Australian Dollar (AUD) impacts the costs and revenue levels of Australian firms that operate globally (buy supplies, sell output).