BMP4003 Business Environment Exam Paper 2021/22

This is the exam paper for BMP4003 Business Environment for Semester 2, Examination 2021/22. It includes short answer questions and two essay questions related to fiscal policies, economic growth, and unemployment. The paper also discusses the impact of Covid-19 on the UK industry and sustainable economic growth.

BSC (Hons) BUSINESS MANAGEMENT
SEMESTER 2, EXAMINATION 2021/22
BUSINESS ENVIRONMENT
MODULE NO: BMP4003
Exam Paper Release Date & Time: Saturday 17 September 2022 at 10:00am
Submission Cut-off Date & Time: Monday 19 September 2022 at 10:00am
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ANSWER BOOKLET
All the pages of the answer booklet should be submitted including blank ones.
Please type your answers in the spaces provided.
Insert additional pages where required.
Student Name
ID Number
Section A
[There are 10 ‘short answer’ questions, you need to answer only 5 of them. You can
choose any 5 questions out of these 10 questions. All questions are worth equal marks
(10x5=50 marks). For each question, use separate heading such as “Answer to the
Question no. 1” or “Answer to the Question no. 2” etc.]
Answer to the Question no. 2

Fiscal policies are developed for improving the economic conditions of a country with the
help of different policies and procedures that are used in this process. Taxes and interest rates are
effectively managed for reducing the percentage of poverty which is increasing issues for the
country to achieve better success. Poor economic conditions are handled with the help of a sound
fiscal policy which is developed for stimulation of their growth opportunities (Hanushek and
Woessmann, 2020). Fiscal policies are effective frameworks which help in generating employment
for the population which is necessary for increasing their contribution in the development of the
nation. Employment opportunities are crucial for increasing the purchasing capacity of consumers
in the market which holds a strong value in increasing the demand and supply of the products and
services. Excess prices and wages are stabilized with the help of Fiscal policies that creates
solutions for businesses to manage their profits and create better opportunities in the industry to
sustain their business. Fiscal policies offer show effective results in reducing the risks and
challenges which may often arise for several businesses in the industry. The economic growth can
be increased with the help of such activities which are beneficial for companies to grow.
Answer to the Question no. 3
Different ways are practiced by governments to increase their economic growth which may
have a significant impact on their overall development of the nation. Tax rebates and cuts are
certain effective ways which are designed in order to increase the money with consumers for
enhancing their purchasing capabilities. Taxes are reduced by government to provide more
satisfaction and relaxation to the general population which motivate them to increase their
expenditure and flourish the overall cash flow in the country. Another effective way is deregulation
which is generally related on a specific business or industry by relaxing the rules and regulations
which are imposed on them creating several restrictions for them. It suggests that strict regulations
may have a negative impact on the overall development and enhancement of the business
success. It is required to reduce such aspects and increase the Rapid growth of the company.
Development in the infrastructure can be another effective way to boost economic growth in the
country as it may help the businesses at local and global level to generate better quality of output.
It is further beneficial to enhance the experience of people in the business environment while
conducting their organizational activities successfully.
Answer to the Question no. 4
Lower interest rates have a significant impact on the overall economic conditions of a
nation as it may increase the spending capability of the consumers. This increase in the spending
nature of the customers may positively affect the market and increase the opportunities available
with businesses to generate better cash flow. Reduction in the interest rates further reduces the
borrowing cost which encourages consumers and businesses to seek loans. This ability of
consumers and organizations to take loans helps in increasing the financial conditions of a
particular nation with the help of more spending and investment on assets. It is beneficial for
increasing the economic stability in a country and generating better quality of output which is
desirable for achieving economic growth and sustainability (Liang and Yang, 2019). Low interest
rates in the market may increase the demand for acids like housing, cars etc. Which is beneficial
for governments to generate wealth. These are certain effects which may have a serious increase
or decrease in the economic stability of a country. Major changes may be experienced in the
business environment of a nation due to the fluctuation in interest rates which directly impacts the
buying behavior of the consumers in the industry.
Answer to the Question no. 7
Supply side policies are developed by governments to find solutions for reducing the issues
which are faced by Nations due to unemployment. Unemployment increases the percentage of
people who are not contributing to the economic growth and development of the country. Providing
the people with better education and training opportunities is one such strategy which is effective in
increasing the skill sets of the people who are looking for a job. This may have a positive impact on
their personal and professional development which is necessary for them to get a desirable
employment for their career development (Mewes and Broekel, 2020). This may help in reducing
the structural unemployment which has a negative impact on the overall success of the country.
Another such supply side policy is providing better job information for reducing the frictional
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unemployment in the nation. This can improve the situation for people who are actively searching
for jobs and not able to find appropriate Employment opportunity. Lastly giving employment
subsidiaries two businesses for considering the issue of long-term unemployment is a beneficial
supply side policy to eradicate this problem of unemployment. It may provide better opportunities
to the unemployed to gain better access to opportunities in the industry.
Answer to the Question no. 8
Unemployment is a critical situation where the population is unable to seek job
opportunities and fulfill their needs which creates a negative impact on the economic growth of the
nation. There are different types of unemployment of which clinical unemployment is explained as
the lack of Jobs available with people in the times of less demand for goods and services in the
industry. Businessmen go through losses in this time period which creates a difficult situation for
them to hold back with their work force and they have to release many of their employees
increasing the unemployment in the business Environment. Another type is structural
unemployment where there is a mismatch between the job opportunities available and candidates
which are looking for work. This may happen due to the lack of skills and abilities in people which
is a major issue in increasing the unemployment rates in the nation. Unemployment is measured
with the help of an effective tool which is called the unemployment rate which acts as an indicator
for understanding the actual situation in the labor market. This provides a detailed analysis of the
people who are unable to find unemployment in the industry due to several reasons.
Section B
[Answer any two questions from section B, all questions are worth equal marks (25x2=50
marks). For each question, use separate heading such as “Answer to the Question no. 1”
or “Answer to the Question no. 2” etc.]
Answer to the Question no. 1
The covid-19 lockdown has had a serious impact on the overall economic development of
the UK industry due to the restrictions which were created on the business environment. There
was a hazardous disease in the environment of the UK which stopped the work and increased
issues and challenges for the businesses to carry out their organizational activities successfully
(Muringani, Fitjar and Rodríguez-Pose, 2021). Due to lock down the production and supply was
stopped or reduced in the market which created the lakh of opportunities available with the
producers and the consumers to carry out business activities and increased economic growth of
the country. This led to a financial crisis in the country which had a negative impact on the overall
management of different tasks and duties.
Businesses have to release their employees due to the shutdown of their companies in the
covid-19 pandemic which increased the unemployment rate in the country. This had a negative
impact on the financial stability of many people and caused them a specific inconvenience due to
such Activities. People were unable to find jobs and stabilize their income due to the covid-19
pandemic and several cases of inconvenience were found with the people that were facing the
issues of this calamity. It affected the financial well-being of people as they had less money for
spending on the essential resources and fully fulfilling their need. This had an overall negative
impact on the UK industry which reduced the GDP of the nation significantly and had a negative
influence on its sustainability at the Global stage. Management of personal finances was a tedious
task in the pending at times due to lack of resources appropriate capital and support from the
government which was not suitable for UK population. There were restrictions that were imposed
on the international trade of goods and services which created much issues on the organizations
which conducted imports and exports of their goods significantly. The travel restrictions were
increasing day by day in the covid-19 lockdown situation which led towards the downfall of the
tourism and travel industry of the UK. The overall economic impact of covid-19 was severe which
created a negative influence on the economic stability of the nation.
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This lack of appropriate capital and resources in the business environment of the UK
increase the chances for the downfall of its economy at the global level. People were facing issues
to manage their household needs, employment opportunities, growth, positive living environment
etc. Which is necessary for them to sustain in the environment of the UK (Otero and et.al.,
2020). The UK Government was unable to manage such negative factors easily as a complex
situation was created due to the death of many people who suffered from this ailment.Covid-19
lockdown reduced the chances for people to maintain Healthy lifestyle and live a peaceful life. This
had a major influence on the economic stability and sustainability of the nation which suffered due
to the negligence of the government to fulfill the needs of their population.
Answer to the Question no. 3
There are different ways which are found by economists through which economic growth
can be achieved sustainably. Sustainability is important for increasing the quality of results and
durability for businesses in the UK Industry. The government can invest in different approaches
which are effective in increasing the opportunities for businesses to generate sustainable results
for the business environment. Changes in the policies and procedures towards the business
practices can lead to the formation of Sustainable economic growth in the business environment.
these changes are considered as effective for the development and enhancement of the business
processes that are considerate towards the achievement of better results which are necessary for
the success And development of the country Providing better opportunities for the consumers to
increase their spending capacities in the market is a sustainable practice which can be adopted by
the government to generate better success (Urbano, Aparicio and Audretsch, 2019).
This can be an effective measure which is dedicated towards increasing the expenditure of
the consumers towards the businesses which is helpful in generating excessive cash flow for the
country. Giving emphasis on the green development of the nation is a successful measure which
can provide better services to the businesses to reduce their inappropriate practices which are
causing harm to the environment. These activities lead towards creation of opportunities which are
helpful in generating better quality of output and increasing the overall success of the country to
enhance their performance. Sustainable changes in the business methods are required to assist
businesses to achieve their organizational goals by making sure they reduce their negative impact
on the environment. With the help of such activities better productivity has been achieved by the
governments which has a positive influence on the overall enhancement of the productivity which
is essential for the economic growth and sustainability of the country.
There are different methods which are effective in analyzing the actual economic growth of
a country that is essential to evaluate what is the development which has been made by a
particular Nation. Gross Domestic Product is one such important tool that is helpful in
understanding the economic development which has been achieved by a nation with the help of
different activities and investments in their production sector (Zafar and et.al., 2019). The
monetary expenditures of businesses and governments towards the creation of products and
services in a particular year is thoroughly calculated for generating better conclusions on the
difference between the previous year related to these aspects. Reduction in the unemployment
rate is another such effective measure which can be helpful in understanding the economic growth
which has been achieved by a country. This aspect provides better assistance to the governments
to understand the number of people which are unemployed due to less opportunities which are
available to them for stabilizing their economic situation. This tells the less capability which is
provided to the population due to decrease in the opportunities which are available with them
regarding these aspects.
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Reference List (if Any)
Write your answer here
Hanushek, E.A. and Woessmann, L., 2020. Education, knowledge capital, and economic
growth. The economics of education, pp.171-182.
Liang, W. and Yang, M., 2019. Urbanization, economic growth and environmental pollution:
Evidence from China. Sustainable Computing: Informatics and Systems, 21, pp.1-9.
Mewes, L. and Broekel, T., 2020. Technological complexity and economic growth of
regions. Research Policy, p.104156.
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Muringani, J., Fitjar, R.D. and Rodríguez-Pose, A., 2021. Social capital and economic growth in the
regions of Europe. Environment and Planning A: Economy and Space, 53(6), pp.1412-1434.
Otero, I. and et.al., 2020. Biodiversity policy beyond economic growth. Conservation letters, 13(4),
p.e12713.
Urbano, D., Aparicio, S. and Audretsch, D., 2019. Twenty-five years of research on institutions,
entrepreneurship, and economic growth: what has been learned?. Small Business
Economics, 53(1), pp.21-49.
Zafar, M.W. and et.al., 2019. From nonrenewable to renewable energy and its impact on economic
growth: the role of research & development expenditures in Asia-Pacific Economic Cooperation
countries. Journal of cleaner production, 212, pp.1166-1178.
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