Affect The Purchasing Power Of Potential Customers And The Firm's Cost Of Capital

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economic growth interest rates exchange rates inflation rate

Economic Factors
Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macroeconomy: economic growth interest rates exchange rates inflation rate
Technological Factors
Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:
R&D activity automation technology incentives rate of technological change 71

DELL computers expect a growth of approximately ten percent over the next five years. This growth is influenced by the economic situation in a specific country, having an impact on the purchasing power of potential customers.
Additionally, changing inflation rates and currency fluctuation also determine the profitability of a company. Another economic factor that can adversely affect the computer industry is the exchange rate of the home currency, all branded products are imported, and their prices vary with changes in the relative exchange rates. Also with an increase in income, consumers are likely to purchase higher quality products rather than to simply purchase more. Thus there is a growing market for higher quality and priced computers. One of the reason that Dell's economic growth is the best known and renowned computer brands. Dell reported net income in its fiscal