Inflation affects low income earners more than high income earners. This is because low income earners' income tends not to rise as quickly as prices, therefore, their purchasing power decreases. Also, low income earners do not have the skills to demand higher wages. It should be noted that high inflation generally leads to interest rate increases. This affects low income earners' cost of living and compounds the other affects of inflation. So, inflation decreases purchasing power of low income earners relative to high income earners, whose income increase as quick as inflation. Ultimately, income distribution becomes less equal.
a. it will cause inflation b. It will lead to domination of foreign companies in the domestic market
how does inflation affect hospitality in nigeria industry
Yes, as the balance of trade is only one part of the balance of payments
can cause fluctuations in the exchange rate between its currency and foreign currencies.
Yeah Sure If it is a slight rate of inflation. it also depends on what kind of growth, if the country grows in one factor it decreases on the other. For example A Decrease is Unemployment rate Might effect the BOP(Balance of payments) or the Price levels or the demand.
foreign inflation rates
a. it will cause inflation b. It will lead to domination of foreign companies in the domestic market
A balance of payments deficit means there is an imbalance in the balance of payments of a country where the payments the country makes are more than the payments they received. It means the balance of payments is negative. A balance of payments deficit is,when government expenditure is more than government revenue
If your country has higher level of inflation than major trading countries, the exports will be expensive and imports will be cheaper. Country's balance of trade will be affected and ultimate effect will be on the rate of exchange.
It has a balance of payments deficit.
how does inflation affect hospitality in nigeria industry
Yes, as the balance of trade is only one part of the balance of payments
Change prices is the most important factor a multinational company can do.
can cause fluctuations in the exchange rate between its currency and foreign currencies.
International Balance of Payments
Yeah Sure If it is a slight rate of inflation. it also depends on what kind of growth, if the country grows in one factor it decreases on the other. For example A Decrease is Unemployment rate Might effect the BOP(Balance of payments) or the Price levels or the demand.
Not as long as you don't default in the payments.