Microeconomic Concepts and the Impact of Brexit on Outdoor Toys Plc

This report discusses the impact of Brexit on Outdoor Toys Plc using microeconomic concepts such as demand and supply, economic profit, and business organization. It outlines the main arguments of the article and two factors applying to the main issue. The report concludes that the shipping prices and production prices of the trampoline will be affected by the happening of the Brexit.

BUSINESS ENVIRONMENT

TABLE OF CONTENT
 INTRODUCTION
 MAIN ARGUMENTS OF THE ARTICLE USING MICROECONOMIC
CONCEPTS
 TWO FACTORS APPLYING ON THE MAIN ISSUE
 CONCLUSION
 REFERENCES

INTRODUCTION
 Business environment refers to the environment which is encompasses the factors
that used to affect the operations of the company.
 This helps in identifying the business opportunities, identifying the useful
resources and helps in improving the overall performance of the organization and
helps to gain profitability.
 The current report is based on the Outdoor Toys Plc. and the owner of this
organization is James Owen.
 The current report will outline the main arguments of the article by using the
microeconomic concepts and terms.
 Further the report will outline the theory and applying to the main issues that will
focus on the Demand & Supply and Economic Profit & Business organizations.

MAIN ARGUMENTS OF THE ARTICLE
USING MICROECONOMIC CONCEPTS
 The main issue that was arisen in the article was that there was the increase in the shipping
prices.
 Outdoor Toys Plc. has checked that the transportation cost and port congestion will be
getting expensive.
 The cited organization owner used to produce some products in the United Kingdom.
 As the rise in the prices of the shipping cost will make the goods more costly and thus it
will affect the production and profitability of the company.

CONTD…
 With the increase in the prices of transportation, James Owen has already predicted that
increase in the shipping prices will affect the cost of the trampoline in the UK in summer.
 It has predicted that the prices of the prices of the trampoline by 405 to 50% in the
coming summer.
 As the main cause of increase in the prices and cost of the shipping of the trampoline was
the happening of the Brexit in the market which causes the changes in the trading prices.

TWO FACTORS APPLYING ON THE MAIN ISSUE
 Demand and supply
 Economic profit and Business organization

CONTD…
 Demand: The demand is the economic principle that used to refer the desires of the
consumers in order to purchase the goods and services and for which they are willing to
pay for the prices of the goods and services.
 Supply: Supply refers to the economic concept that used to describe about the total
amount of the goods and services that are available to the consumers in the market

CONTD…
 Economic profit : The economic profit is defined as the difference between the
revenue that is received by having the sales of the output.
 Business organization: It is refers to the entity that is formed or made for the specific
purpose of the carrying the commercial enterprise.
The organization is mainly affected by the happening of the demand and supply
in the market.

CONCLUSION
 From the above report it is concluded about the main argument that are related to the
microeconomic concepts and terms.
 Further this presentation has described the two main theory applying on the given issue
in the presentation.
 The two factors taken are demand and supply and economic profit and business
organization which was affected by the Brexit on the shipping industry.
 By focusing on these two factors it shows that the shipping prices and the production
prices of the trampoline will be affected by the happening of the Brexit.

REFERENCES
 Bisciari, P., 2019. A survey of the long-term impact of Brexit on the UK and the EU27 economies.
 De Ville, F. and Siles-Brügge, G., 2019. The impact of Brexit on EU policies. Politics and
Governance. 7(3). pp.1-6.
 Fernandes, A. P. and Winters, L. A., 2021. Exporters and shocks: The impact of the Brexit vote
shock on bilateral exports to the UK. Journal of International Economics. 131. p.103489.
 Kerridge, M., 2018. The Impact of Brexit on the Transport Industry. Logistics and Transport. 40.
 Levesque, S., Robertson, M. and Klimas, C., 2022. A Life Cycle Assessment of the Environmental
Impact of Children's Toys. Sustainable Production and Consumption.
 Secretariat, C., 2021. Impact of Post-Brexit Procedural Rules for African Exports into the UK.
 Tetlow, G. and Stojanovic, A., 2018. Understanding the economic impact of Brexit. Institute for
government. pp.2-76.
 Wang, Y., Meng, Q. and Kuang, H., 2018. Jointly optimizing ship sailing speed and bunker
purchase in liner shipping with distribution-free stochastic bunker prices. Transportation Research
Part C: Emerging Technologies. 89. pp.35-52.