Which would cause SA firms to think about cutting back production?

Question

Quizplus · Accepted Answer

If there is a build-up of stock levels, this indicates that demand for the firm's goods is not as high as expected. To avoid excess inventory and potential losses, the firm may consider cutting back production until demand picks up again. A fall in real wages or ease of credit controls would likely have the opposite effect, as they would increase consumer purchasing power and potentially boost demand for the firm's goods. An improvement in the South African economy could also increase demand for the firm's goods and make production cutbacks less necessary.

Which Would Cause SA Firms to Think About Cutting Back