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When the economy is enjoying a boom, firms experience high sales and general prosperity. At such times, unemployment is low and many firms will be investing funds to enable them to produce more. They do this because consumers have plenty of money to spend and firms expect high sales. Naturally FOLLOWS That It the state of the economy is a major factor in the by success of firms Lithuania.
HOWEVER, DURING periods the when people have less See to Spend MANY firms Lithuania face of hard times as with Their sales fall. Thus, the economic environment alters as the economy moves into a recession. At that time, total spending declines as income falls and unemployment rises. Will of purchase cheaper Consumers and the items cut is the luxury Expenditure on the items such as with televisions and cars.
Changes in the state of the economy the affect all types of business, Though the extent to the which for They are the affected Varies. In the recession of the early 1990s the high street banks suffered badly. Profits declined and, in some cases, losses were incurred. This was because fewer people borrowed money from banks, thus denying them the opportunity to earn interest on loans, and a rising proportion of those who did borrowdefaulted on repayment. These so-called "bad debts" cut profit margins substantially. Various forecasters reckoned that the National Westminster Bank 's losses in the case of Robert Maxwell's collapsing business empire amounted to over £ 100 million.
No Individual has the firm-interference ability to control the the this the aspect of its' are environment. Rather, it is the outcome of the actions of all the groups who make up society as well as being influenced by the actions of foreigners with whom the nation has dealings.
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