Agricultural products have low price elasticities of supply

Output is affected by non-controllable factors such as climate

Supply decisions are based on the prices of the present time period

Markets have a low price elasticity of demand

Increased consumption

Increased investment

A higher exchange rate

An increase in aggregate demand

Overseas investment by a domestic multinational company

Expenditure in the country by an overseas visitor

A flow of company profits to the parent company based in another country

Payment by an overseas company for services provided in the country

Depend more and more on their domestic markets.

Have to raise more capital from internal sources.

Have less need to increase their international competitiveness.

Be more and more affected by changes in exchange rates.

Withdrawals exceeding injections

Aggregate demand exceeding aggregate supply

Injections exceeding withdrawals

A fiscal deficit

A fixed exchange rate relative to non union currencies.

Free movement of goods and services between member states.

A common external tariff.

Free movement of factors of production between member states.

Shareholders rate of time preference for money

The amount of earnings that will be lost as taxation

The amount of risk the investment is subject to

The rate of inflation