Evaluate economic conditions that influence company performance.

1. Interest Rates: Low interest rates create an economic environment that is conducive to business growth, as companies can borrow cheaply to invest in new equipment and personnel, while high interest rates make borrowing more expensive, reducing profitability.

2. Inflation: High inflation erodes the purchasing power of a company’s income and reduces profits. Conversely, low inflation provides more stability and increases overall confidence in the economy, allowing businesses to plan for future investments with greater certainty.

3. Consumer Spending: A large portion of most companies’ revenues come from consumer spending on their goods or services; therefore, any change in consumer demand can greatly influence a company’s performance.

4. Tax Policies: Different tax policies levied by governments impact how much profit a company makes after taxes are paid; so any changes or alterations in these policies can affect corporate performance accordingly.

5. Exchange Rates: Changes in exchange rates between currencies can have a significant effect on international business operations since it impacts the cost of imported materials and affects pricing of exported products sold abroad.