1) High interest rates also deter companies from investing in new capital and expansion . On the other hand falling interest rates can stimulate industries to grow , take bolder and risky decisions .
2) The it industry will change its focus based on the growth . if the growth and economy is growing at a slower pace then the any new ideas wont be use . decisions taken would be based on stabilizing of company during such tough times and not on bringing in new ideas .
3) Loss of innovation occurs if economy is weak as it is sacrificed for the sake of sustainability whereas if economy is growing innovation is given top priority .
4) If economy experiences slowdown then project cancellations may take place which in turn over a long term ( say in a year if the situation remains same ) may cause layoffs as the company has to take decision and make ready a future strategy . But if the economy is looking great there will be more hiring and higher salaries and management will be bullish about the opportunities and will take calculated risks .
Aug 22nd, 2014
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