Economic Outlook of Lithuania Essay
abu dhabi, 2010
1. Monetary policy in Lithuania 4 2. Key reasons of monetary policy 4 3. Enacting the monetary policy 5 4. Impact of economic …show more content…
5. Impact on business cost structures
The cost structures in most of the high tech industries remain primarily fixed as they require heavy investments on R&D etc. Thus, the reduction of the demand from the Europe has resulted in a heavy blow on the Lithuanian industries. While the impact of maintained monetary policy was more stabilizing on these companies, due to lower demand for their products, the companies were suffering largely.
While some of the industrial manufacturers went bankrupt as they failed to maintain the demand for the products at a level which they can survive, other companies had to reduce costs in line with most of the other companies in Europe and North America. They were compelled to reduce less profitable operations, contain capital expenditure to only most necessary and reduce