Investments And Exchange Rates On The Stock Market

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| |Interest rates |Stock market |Exchange rates |
|Productions and trade levels |Increased rates cost Whitbread | |Exchange rates effect how much |
| |money because it’s borrowed on | |the company pays for their raw |
| |its loans so, it may need to sell| |materials and this effects the |
| |more. | |profits |
|Investments |Interest rates give a |If the stock market is on a high |If people want to invest from |
| |choice/incentive to individuals |percentage increase, then it is |abroad then it might affect the |
| |to either to pick buying share or|more prone to receiving |amount of investment coming into |
| |go into bank savings. Comparing |investment from individuals. |the business, this is only if |
| |interest rates from bank with | |they can convert their money into|
| |profits expected from buying | |pounds at a good rate. So if |
| |shares. | |Whitbread is doing well its |
| | | |profits go up because of the |
| | | |increase in holidaymakers then |
| | | |people will want to buy its |
| | | |shares. |
|Prices |If interest rates are high and |The stock market does have some |Exchange rate affects the amount |
| |people don’t have enough money to|kind of an effect on the prices |of tourist that comes to the U.K.|
| |go out, then Whitbread are more |of what Whitbread sell as, if the| |
| |likely to lower prices in its |stock market average is on a high|Whitbread would want the exchange|
| |products and services order to |then more people are likely to go|rate of the pound to be low so |
| |attract customers. |and spend money on things like |that people can come and stay in |
| | |booking holidays in hotels and |their hotels. |
| | |going for coffee and going for a |The prices of products like |
| | |drink down the pub, all things |‘coffee’, will affect the prices |
| | |which some are owned by Whitbread|fo imports |
| | |‘costa, holiday inn, premier | |
| | |inn.’ | |
|Wages and salaries |Employees may demand higher wages|Increase in demand and increasing|If

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