Enterprises can survive under the shadow of inflation technique.docVIP

 PAGE \* MERGEFORMAT 5 Enterprises can survive under the shadow of inflation technique This is a relatively large and more difficult to answer the topic, different inflation situation, different enterprises to survive is different, it is difficult to generalize. In fact, inflation in the general conditions (price growth in 20%), the competition among the enterprises and the means of survival and a normal state, there is no qualitative difference. Inflation for enterprises to create a number of speculative opportunities for some businesses to seize these opportunities may change the status of enterprises in the competition. And, when prices increased by more than 20% of the inflation conditions, enterprises in all business purpose may be to survive, but this time the business must be more conservative. To tide over the inflation period, enterprises should do the following pieces of work: 1, reducing the construction of long-term investment projects. Occupied by long-term capital investment projects, large and long construction period as short as a few months or as long as several decades. In times of inflation will increase investment costs of the currency in nominal terms, a direct impact on the project financing. A high inflation rate is not the case, generally estimates an increase in investment costs can not be foreseen. However, in the case of a higher inflation rate, in addition to a general increase in unforeseen costs (basic reserve fund), but also to increase a reserve fund to consider the effects of inflation spreads. The higher the inflation rate, construction, longer life, then the construction costs rise more, the project construction costs also increasing. This in turn may make the original project is funded by the budget out of control, spending a lot of money companies may even tow the death of the enterprise edge. 2, regular advance purchase and hoarding of production of essential raw materials. Inflation period, the product raw material