Background:

• The firm imports high quality wool to Britain from foreign suppliers located in Australiaand the New Zealand.
• The firm exports Jewellery to USA from Britain.
• The firm exports designer clothes from Britain to Australia, New Zealand and Singapore.
• The firm has a payment of 8,000,000 AUD due in 3 months to their supplier in Australia, a payment of 6,000,000 NZD due in 2 months to their supplier in New Zealand.
• The firm is due to receive 9,000,000 AUD from their customer in Australia in 2 months, 4,000,000NZD from their customer in New Zealand in 2 months, 700,000 SGD from their customer in Singapore in 1 months, and 9,000,000 USD from their customer in USA in 2 months
• The firm is concerned with the impacts of the potential high inflation rate due to the recent expansionary monetary policy globally in their exporting and importing business

Question: (Discussion of the impact of economic environment)

Discuss the impact of the current economic environment and explain the relationship to how this may affect the firm.