Post by account_disabled on Mar 11, 2024 6:59:43 GMT
The final cause of the decline in the value of money is political influence. If there is political uncertainty, especially if it leads to identity politics within a country, foreign investors are usually reluctant to invest their capital in Indonesia. This means they are reluctant to exchange their dollars for rupiah. In fact, this is a condition for the value of the rupiah currency to increase. However, due to political unrest, this was not done. If progress does not improve, then of course the value of the rupiah will sink further. Also read: Get to know the types of economic systems for business sustainability.
The Relationship between the Decline in the Value of Money and Business The Relationship between the Decline in the Value of Money and Business illustration of the causes of the decline in the value of money. source envato If the value of the rupiah experiences an extraordinary decline, it will definitely have a negative impact on business. In fact, as explained above, the worst impact is Panama mobile number list that the company will go out of business. Here is a more complete impact from which an important connection can be drawn: . Business becomes sluggish If the currency experiences a decline of course business will be sluggish.
In fact, products that are usually produced in certain quantities will be reduced. This is caused by expensive production costs but not accompanied by high consumer purchasing power. Of course, increasing production costs and increasing product prices is not the right step. In fact, people are more selective in buying these products and in the end the company suffers losses. . Business finances become unhealthy The second is that business finances become unhealthy. Because there are no longer any injections of funds from foreign investors. Where they start to withdraw their capital because they no longer get satisfactory profits. For the business itself, this could be a setback. Because without funds from investors, of course business capital is very minimal.
The Relationship between the Decline in the Value of Money and Business The Relationship between the Decline in the Value of Money and Business illustration of the causes of the decline in the value of money. source envato If the value of the rupiah experiences an extraordinary decline, it will definitely have a negative impact on business. In fact, as explained above, the worst impact is Panama mobile number list that the company will go out of business. Here is a more complete impact from which an important connection can be drawn: . Business becomes sluggish If the currency experiences a decline of course business will be sluggish.
In fact, products that are usually produced in certain quantities will be reduced. This is caused by expensive production costs but not accompanied by high consumer purchasing power. Of course, increasing production costs and increasing product prices is not the right step. In fact, people are more selective in buying these products and in the end the company suffers losses. . Business finances become unhealthy The second is that business finances become unhealthy. Because there are no longer any injections of funds from foreign investors. Where they start to withdraw their capital because they no longer get satisfactory profits. For the business itself, this could be a setback. Because without funds from investors, of course business capital is very minimal.