Firms, Markets and Business Management - Case Study Example

of Australia decision on the dollar will have a vast impact on the financial market and the overall trading in the country, including demand and supply of imports and exports. The appreciation in Australian Dollar will impact the consumer rates of trading accordingly creating a higher spending ability of the people; hence, higher demand for products. The expected decision thus, to appreciate the Australian dollar will in result give consumers spending power, creating demand for products including from the whiskey firm.

The whiskey firm will have to provide ore supplies hence earning more revenue and profits. The appreciation of the Australian dollar will target the inflation rate, as an expression to achieve over a period of years. Thus, in implementing the decision taken, the Australian Reserve Bank will seek to facilitate a flexibility for the policies that account for the short term impact on the consumer and producer as well as the overall economic growth (Australia , p 17, 2015). Thus, the trading course in the country with respect to the will Australian dollar changes will create a demand for supplies hence a steady curve for the trading engagements for the whiskey firm.

In recent developments within the U.S., the U.S. Dollar has gained remarkable ground in trade, sparking an upward growth of the dollar. The effect resulting is global investors stashing money into the economy giving the dollar more muscle for trading against the other currencies. Consequently, the U.S. Dollar as it gains grounds for stronger trading and higher rate, the impact is on the global investors that export their products into the country (Valentine, p 14, 2012). The established implications for the higher dollar include that, the company that generates revenue from within the country have better competitive advantage against the local companies trading in foreign markets.

Translating the profits back to the Australian Dollar will notably benefit this Australian whisky firm