Free

The Most Important Economic Factors - Essay Example

Summary

The paper "The Most Important Economic Factors" asserts that economic activities are largely influenced by economic factors such as the economy and economic growth, government policies, and consumers. These factors interact to determine business prospects for investment decisions…

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER95.2% of users find it useful

Read Text Preview

Subject: Macro & Microeconomics
Type: Essay
Level: Undergraduate
Pages: 1 (250 words)
Downloads: 2
Author: johnssantiago

Extract of sample "The Most Important Economic Factors"

The mean and standard deviation for percentage change in market indices and interest rates are summarized below,

Market indices

Interest rates

Mean

30.48

97.19

Standard deviation

14.56

251.75

The means indicate average values while standard deviation measures dispersion.

A test of hypothesis indicates that the percentage changes in market indices and interest rates were significant.

A scatter plot suggests the existence of a negative linear relationship between changes in the market index and interest rates with the existence of an outlier. Regression analysis however indicates a poor relationship between the variable with a low R squared value of 0.268, which means that the model only explains only 26.8 percent of the data. The regression coefficient is -0.0299 with a p value of 0.0277. The low p-value shows that the regression coefficient is significant.

Conclusion and recommendation
An increase in interest rates in a foreign country would therefore lead to a decrease in the value of foreign profits due to a low market index. The report recommends that national interest rates be considered when making global investment decisions. This is because a significant relationship exists between interest rates and market indices.

Cite this document

APA
MLA
CHICAGO

(“Question Essay Example | Topics and Well Written Essays - 250 words - 5”, n.d.)
Question Essay Example | Topics and Well Written Essays - 250 words - 5. Retrieved from https://studentshare.org/macro-microeconomics/1592193-question

(Question Essay Example | Topics and Well Written Essays - 250 Words - 5)
Question Essay Example | Topics and Well Written Essays - 250 Words - 5. https://studentshare.org/macro-microeconomics/1592193-question.

“Question Essay Example | Topics and Well Written Essays - 250 Words - 5”, n.d. https://studentshare.org/macro-microeconomics/1592193-question.

Cited: 0 times

CHECK THESE SAMPLES OF The Most Important Economic Factors

Marketing plan for Kenwood group

0C (Environmental report, 2010) In addition to this, agricultural sector of UK is progressing by leaps and bounds and is contributing a lot towards economic growth and development.... It is important to determine how businesses can communicate their purpose, intended goals and their products' specifications to their customers....

17 Pages (4250 words) Essay

Most Important Economic Indicators

The paper " most important economic Indicators" explores indicators supposed to modify ahead of alterations in the economy, providing a look at what is going to take place earlier than the actual change.... nother important economic indicator is inflation.... Economic indicators are the most closely observed parts of news within the investment world.... Steady inflation not just offers a nurturing setting for economic development, but also supports the underprivileged and fixed-income residents who are the most helpless within society....

4 Pages (1000 words) Essay

Russia's Most Important Economic Sectors

Russia's most important economic Sectors Introduction: Russia is the ninth biggest economy in the globe according to the nominal value.... Shortly after liberty, the new Russian government announced a much more determined program of political and economic reformation.... As result “The economic decline bottomed out in mid-2009 and the economy began to grow in the third quarter of 2009” (Economy – Overview n.... Since the rein of Vladimir Putin and his associates to power in 2000, activities to important positions in the Russian establishment, as well as the energy industry, have been made according to certain criterion: individual loyalty and the capability to manage cash flows Natural Resources Including Coal, Gas, Oil, Timber and Metals Sectors: Russia may contain as much as 35% of the world's supply of natural gas....

5 Pages (1250 words) Essay

Adam Smiths economic theories

According to some classical economists The Most Important Economic Factors are capital accumulation and growth, and this concept has originated from Adam Smith's Nature and Causes of the Wealth of Nations.... Adam Smith's economic theories According to some classical economists The Most Important Economic Factors are capital accumulation and growth, and this concept has originated from Adam Smith's Nature and Causes of the Wealth of Nations.... Smith has argued that this proportion is determined by two factors – 1) skill and dexterity of labour and proper application of the skills, 2) proportion of labour employed to that of labour not employed in useful work....

5 Pages (1250 words) Research Paper

The Importance of Transaction Cost Economics

Thus Evolutionary Theories also center on the basic concepts of organizational changes due to these three factors.... As it is the fact that the existence of the 'ideal set up' requires a perfectly efficient market and the prerequisites of such a market are the factors like availability of full information to all the parties and perfect competition among other requirements.... On a similar footing, "TCE studies organization from a comparative point of view in which different institutional arrangements are considered alternative ways to organize economic activity" - Roland F....

14 Pages (3500 words) Literature review

The Property Market at World Level

This topic is the key reason behind the decline in the economic growth of the world as well as the collapse of the world's financial system.... The paper "The Property Market at World Level" studies as to how this credit crunch will affect the world markets in general as well as the Hong Kong Market in particular....

6 Pages (1500 words) Report

Economic Growth Factors

The assignment "Economic Growth factors" focuses on the basic determinants of the economic growth of a country.... economic thinkers, since times immemorial, have been interested in problems and implications of economic growth.... In fact, economic growth was the central theme of classical economics.... The classical economists like Adam Smith, David Ricardo, Malthus, and others had greatly interested themselves in the problems of economic growth....

6 Pages (1500 words) Assignment

The Factors in Economic Boundaries

One of the most important and central questions people ask about companies is what exactly determines their economic scope.... This review "The factors in Economic Boundaries" discusses the effects of economic boundaries and how their recent changes are re-defining trade and political alignments.... The external environmental factors include; competitors, resources, inflation rates, transaction costs, and market trade.... Depending on market environments, they consider factors that can cause barriers to their entry or even affect how they establish their prices....

1 Pages (250 words) Literature review