Business Environment in Fiji

Fiji business environment is a combination of several factors that govern the business and trades of this island nation. Fiji business environment is generally good and promising for taking initiative of new ventures apart from some occasional disturbing factors. Fiji is one of the most progressive island nations in the central southwesterly of Pacific Ocean. It has many industries and other natural resources that help together to make a good business environment in this country. But Fiji faces a arrive of troubles also in the business sector.There are some political strife in the country that has originated from the clash between the cultural communities belonging to dissimilar ethnicity. Moreover, Fiji has some other problems also which are not favourable for creating a sound business environment in Fiji. Some of these problems are, natural disasters, deficiencies of sound stinting plans and some others. But overall, Fiji business environment is good and promising enough for fu rther developments. Business is affected by the external environment as it is by the competitors.It is important that firms are aware of the changes in the external environment to be successful. Understanding the influence of Macroeconomic factors helps the firms to determine the current market conditions and how beneficial go forth they be for the success of their business. Various macroeconomic factors that influence the business are Macroeconomic factor a. Economic Growth. Economic activities refer to the level of buying and merchandising activities happening in an deliverance over a time period.Economic activity changes could happen due to the following reasons Changes in income levels Future prospects of individuals. Future of the economy The level of economic activity in the world as a whole Political activities around the world Natural disasters like hurricanes, earthquakes, or run etc Changes in prices of raw materials oil, metals, fuel, energy and so on Changes in worl d stock markets b. Inflation With the increase in Inflation there will be an increase in the level of prices of products and services over a specific period of time.As a result the firms will have to incur high costs of operations. This will be also due to the increase in wages of the employees. c. Interest Rates Interest commits are the charges levied by the banks for add a bestow. Increase in Interest rates will directly influence the business as businesses borrow money from the banks from time to time. Increase in interest rates will lead to higher interest expense Businesses will have to incur higher costs to re liquidate the loan. Interest rate changes also affect customers who in turn will affect the business.In case of increase in interest rates the amount that individuals need to pay to borrow the money will increase thereby, reducing the demand for large products in the market. Further, if the interest rates decrease then the charges on a loan to buy larger items like c ars, electrical equipments are likely to fall. As a result, a large number of people might be will to buy such items. There will be a sudden increase in the demand for the products offered by such businesses.