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MS50054E : Business Economics Assignment
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Business Economics (MS50054E)
Added on 2020-05-04
MS50054E : Business Economics Assignment
Business Economics (MS50054E)
Added on 2020-05-04
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Running head: BUSINESS ECONOMICSBusiness Economics Name of Student:Name of University:Author’s Note:
BUSINESS ECONOMICS1Executive SummaryThe report aims to analyse the different types of the aspects which has been taken intoconsideration with the overall economy of U.K. The report has been further able to consider thedifferent types of the aspects for the global economy. The various considerations for the reporthave been also able to depict the industry analysis of automobile sector. Some of the varioustypes of the other consideration of the report have been seen with the use of technological basedindustry in U.K. The investment portfolio has been further seen to be based on the various typesof the consideration taken with the rationale of demand and supply being elastic or inelastic. Thelatter section of the report has been further included a recommendation precisely stating thatwhether it is worth to invest a £3-8 million on the selected company. The global opportunitieshave been evident with increasing trade prices and larger amount of FDI in 2010 in internationalforeign direct investment and international trade has been seen to be associated to the varioustypes of the depiction which has been further considered with the strengthening of financialcontrol and risk management strategies. The various types of the global threats have been furtherseen to be discerned in terms of global macroeconomic policy caught in dilemma and increasedform of the requirement of the proportion of the capital. The opportunities in the UK economyhave been further discerned in terms of emerging in nature of non-EU markets and significantlyfaster growth for the foreseeable future. UK markets will be further able to set its own tariff forbetter protection in global economy. As per the application of CAPM it can be discerned that theinvestment of £3-8 million on Rolls-Royce Holdings is not recommended due to significantlylower rate of return as per the market depiction of last five years. If the same amount of money isinvested in government bond of U.K. or UK Gilt for a total period of 10 year then an investorwill be able to earn returns as per the risk free rate of 1.34% as against the stock of Rolls-RoyceHoldings which is only 1.224%.
BUSINESS ECONOMICS2Table of ContentsIntroduction......................................................................................................................................3Analysis of the global economy and UK Economy.........................................................................4Global economy...........................................................................................................................4UK Economy...............................................................................................................................5Large vertical market.......................................................................................................................5Industry analysis..............................................................................................................................6Investment portfolio.........................................................................................................................7Asserting the nature of Demand and Supply...............................................................................7Effect of Brexit in the Business.......................................................................................................8Strategy will be impacted by Brexit................................................................................................8Importing from EU countries...........................................................................................................9Conclusion.......................................................................................................................................9Recommendation...........................................................................................................................10References......................................................................................................................................12List of Appendix............................................................................................................................14
BUSINESS ECONOMICS3Introduction Rolls-Royce Holdings plc is identified as a British multinational public limited companywhich has been incorporated in the year 2011. The main business was seen to be initiated in theyear 1904. The primary operations of the company have been further seen to be related tomanufacturing power distribution systems for aviation and second largest in terms of the aircraftengines in the energy sectors and marine propulsion. As per the main depictions of the companyit has been further identified that the company has been 16th largest in terms of the defencecontractor in 2011 and 2012. The main listing of the company has been further seen to be basedin terms of London Stock Exchange listing.The study has been seen to analysis the different types of the aspects which has beentaken into consideration with the overall economy of U.K. The report has been further able toconsider the different types of the aspects for the global economy. The various considerations forthe report have been also able to depict the industry analsysis of automobile sector. Some of thevarious types of the other consideration of the report have been seen with the use oftechnological based industry in U.K. The investment portfolio has been further seen to be basedon the various types of the consideration taken with the rationale of demand and supply beingelastic or inelastic. The latter section of the report has been further included a recommendationprecisely stating that whether it is worth to invest a £3-8 million on the selected company (Alstonand Pardey, 2014).
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