does the inflation rate of a country affect the investment environment of the country?
in what way does the inflation rate affect the investment environment directly? is it in a large scale?
Investment best answer:
Answer by Makarand M
According to me 'Investment environment' may be divided into retail investors environment & corporate investors environment. out of these two groups retail investors may be affected largely due to increase in inflation rate because of various factors. but corporate investing environment may have different reactions because their investments is affected due to some other factors like dollar-rupee exchange rate, change in crude prices, draining power of their customers, forein economy etc etc.
the cumulative effect may be small if there is huge growth in commodity products or if there is deflation after inflation.
Investment
EU Foreign Direct Investment [SEMINAR]
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