Microeconomic Concepts and Brexit: An Article Review

This presentation discusses the main arguments of an article on Brexit and its impact on shipping costs using microeconomic concepts such as demand and supply, market structures, and elasticity. It also highlights the importance of understanding the business environment for making future decisions and planning.

BMP4003 Business Environment
Assessment 1 - Individual Presentation

Article Review - Economic Concepts And Models
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Contents
• Introduction
• Explaining the main arguments of the article using microeconomic concepts
• The microeconomics theories and their application to the main issues
• Conclusion
• References

Introduction
• The collection of all micro and macro
factors that have the power to affect
operations of an organisation is refer as
business environment. It helps in
determining opportunities for business in
future by optimally utilising all the
resources available and improving the
performances of employees.

Explaining the main arguments of the
article using microeconomic concepts
• The given article highlights the problems created
by the decision of Brexit. The first argument
described in the article is the rising shipping costs
which will lead to increase the cost of trampolines
in UK. High transportation cost and port crowding
has result in heavy duty fees on large toys like
swings, trampolines, climbing games making these
toys more expensive.

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• The next argument is the high demand of
Chinese items all around the world which
puts a burden on current shipping
capacity of the country. As the result of
roaring demand, the cost of shipping a
large container on leading trade routes has
doubled from before.

The microeconomics theories and their
application to the main issues
• Several microeconomic terms have played a major role in the deciding the current
situations of rising shipping cost, declining in supply, market conditions, etc. The
theories of demand & supply, market structures, economic profit, cost &
production are discussed below:
• Market structures- The theory of market structure represents the differentiation
basis of companies and their categorisation according to kinds of products they sell
as well as the impact of macro factors on their operations.

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• Elasticity- The theory of elasticity
describes the reactivity of supply and
demand when price changes. It
determines the changes in demand of
products and its supply with context to
alteration in income level of consumer or
cost for producer.

Conclusion/Summary
• As per the above information it is concluded that business
environment is highly fluctuating and unstable that no one has control
over. It provides lot of opportunities for business both internally and
globally but it also creates many problems in trading world wide.
Comprehensive understanding of business environment helps in
making future decision and planning.

References
• Gogokhia, T. and Berulava, G., 2021. Business environment reforms, innovation and firm
productivity in transition economies. Eurasian Business Review. 11(2). pp.221-245.
• Halbert, T. and Ingulli, E., 2020. Law and ethics in the business environment. Cengage
Learning.
• Kir, H. and Erdogan, N., 2021. A knowledge-intensive adaptive business process management
framework. Information Systems. 95. p.101639.
• Nikitina, T. and Lapiņa, I., 2019. Creating and managing knowledge towards managerial
competence development in contemporary business environment. Knowledge Management
Research & Practice. 17(1). pp.96-107.

Thank you