Effect of structural economic changes on industries
The following factors can have a significant effect on the cash flows and risk prospects of different industries
1) Demographics
The study of demographics includes much more than population growth and age distributions. It also includes the geographical distribution of people, the changing ethnic mix in a society and changes in income distribution.
2) Life style.
Consumer behavior is affected by trends and fads.
3) Technology
Trends in technology can affect numerous industry factors including the product or service and how it is produced and delivered.
4) Politics and regulations
The industry analyst needs to project and assess political changes relevant to the industry under study.
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