ACCA · Question 05 · Syllabus A: Business organisation and its external environment
GlobalTrade is a cross-border multinational logistics firm. The central bank of their primary operating country has recently announced a significant increase in base interest rates to combat inflation.
What is the most likely direct macroeconomic impact of this policy on GlobalTrade?
Answer options:
The cost of borrowing for future expansion projects will increase.
Consumer disposable income will increase, boosting demand for logistics.
The country's currency will likely depreciate in the short term.
Corporate tax rates will automatically decrease to offset the interest hike.
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