Monday, November 22, 2010

How do global events affect business such as airlines and supermarkets?

How do global events affect business such as airlines and supermarkets? This could be:



?Stock market fluctuations

?Currency exchange rate changes

?Major business bankruptcies e.g. of US banks

?War %26amp; terrorism

?Disease

?Climate change and natural disasters

?Environmental issues and agreements to deal with themHow do global events affect business such as airlines and supermarkets?
it depends on the direct correlation of the events to the industry. for example, a global recession will affect the profits of these industries. however, an oil spill in the gulf like we have currently will not likely affect the airline business. it just depends. however, if an event is truly global, chances are there will be collateral benefits or damage that will trickle to other industries. lets take the example of oil. a war in the mid east might push oil prices high. when that happens, aviation fuel becomes expensive, and so does water and milk because they are transported on trucks which require fuel. therefore, a trickle effect will be reflected in higher prices for airline tickets and supermarket bills for consumers

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