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Essay / Research Paper Abstract
This 6 page paper is written in two parts. The first part looks at the changes in the US economy in 2005/6 and into 2007 with the weak dollar and considers what impact this has and what opportunities it can create as well as the link between change and entrepreneurship. The second part of the paper considers the choice of setting up a new venture or buying an existing business looking at the disadvantage of each option and then considering how a business might be vlaued. The bibliography cites 2 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEchangecon.rtf
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Unformatted sample text from the term paper:
weakness of the dollar. At the beginning of December 2006 the dollar reached its weakest point for 14 years against other major currencies including the Euro, Sterling and the Yen
(FT, 2006). There are many reasons for this change. The value of the dollar had been sliding for some years on a gradual decline, the trade balance deficit is
one major influence and as the interest rate rises appear to have halted for a while in the US and further rate rises are occurring in Europe are all bad
new for the dollar. Internal there are also some worrying leading indicators., for many years housing demand and prices have been a general leading indicator, this market is also slowing
down and this is thought to indicate that the internal economy may also be weakening with a lower level of demand (Platt, 2006). With the dollar weakening this has
an impact on the internal economy, the cost of imports will rise as it will take more dollars to pay the sae cost in terms of the foreign currency. This
is likely to rescue in reduced demand for many goods. There is one major exception, this is China, were the currency is fixed against the dollar, this accounts for 15%
of imports and as such will not see any change (CIA, 2006). There are also some countries which have a policy of dollarization, where they se the dollar as their
currency, these countries will have little impact on the US economy. This appears to be bad new for the US economy, but the weak dollar also gives rise to
some potential benefits for the business that is looking for opportunities. Where imported goods increase in price there may be a greater demand for goods that are not imported, the
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