Economics for Sa

ECONOMICS ASSIGNMENT: THE BUSINESS ENVIRONMENT

ECONOMICS ASSIGNMENT: THE BUSINESS ENVIRONMENT
Compiled by SYNDICATE 8 [ALPHAS]
Denishree Naidoo Marcus Gericke Adrian Pillay Tumi Mdudli Tina Sefotlhelo • Ontiretse Modise • • • • •

ECONOMICS ASSIGNMENT : THE BUSINESS ENVIRONMENT

TABLE OF CONTENTS
1. INTRODUCTION:......................................................................................................................................................1

2. FACTORS INFLUENCING THE SUPPLY AND DEMAND OF CURRENCIES .......................................................................1 2.1 Currency Appreciation and Depreciation .................................................................................................................2 2.1.1 The DEMAND for South African ZARs in the United States ...........................................................................2 2.1.2 The SUPPLY of USD in South Africa ................................................................................................................ 2 2.2 The Balance of Payments ......................................................................................................................................2 2.2.1 Net Capital Flows ...........................................................................................................................................3 2.2.2 South Africa’s Current Account Deficit ..........................................................................................................3 3. DEVELOPMENTS OBSERVED IN THE FOREIGN EXCHANGE MARKETS.........................................................................3 3.1 Impact on South Africa’s Balance of Payments ....................................................................................................5 3.2 Impact of the Exchange Rate on different Spheres of the SA economy...............................................................5 3.2.1 Business

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