BUSINESS ECONOMICS TABLE OF CONTENTS INTRODUCTION

BUSINESS ECONOMICS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Summary of UK economy, its economic system and characteristics.....................................1
TASK 1............................................................................................................................................2
1.1 Explaining scarcity problem and allocation of resources.................................................2
1.2 Explanation of importance of supply and demand as well as equilibrium.......................2
1.3 Different kinds of market systems and opportunity costs................................................3
1.4 Evaluating role of opportunity cost in order to determine that in which way economies tale
decisions.................................................................................................................................4
1.5 Explanation of demand elasticity and significance of it...................................................4
TASK 2............................................................................................................................................4
2.1 Explaining implications of pricing as well as corporate objectives.................................4
2.2 & 2.3 Comparing market structures in terms of determining price and how these affect to
the firm's behaviour................................................................................................................5
2.4 Evaluating impact of UK regulations on market power...................................................5
TASK 3............................................................................................................................................6
3.1 Analysis of change in economic structure of UK and its impact on Co-op Food............6
3.2 Evaluation of economic tools...........................................................................................6
3.3 Evaluating government's policies success in order to meet macroeconomics objectives 7
3.4 Evaluating economic performance of UK .......................................................................7
TASK 4............................................................................................................................................9
4.1 Competitive advantage theory..........................................................................................9
4.2 Merits and demerits of the free trade..............................................................................10
4.2 Analysing impact of developing economies...................................................................11
4.4 Influences of recent domestic and global economic shocks on the economy................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

ILLUSTRATION INDEX
Illustration 1: Equilibrium chart.......................................................................................................3
Illustration 2: UK GDP rate.............................................................................................................8
Illustration 3: UK inflation rate........................................................................................................8
Illustration 4: UK unemployment rate.............................................................................................9
Illustration 5: Estimated impact of world shocks on UK’s GDP...................................................12

INTRODUCTION
The study under which financial problems, challenges and issues faced by corporate
world are involved is considered as business economics. It deals with basically monetary policies
and various issues like management, strategies, business expansion, price determination, etc. The
present study is based on "Co-op Food” company which is UK based and operating in grocery.
In the grocery items, it majorly deals with vegetable products in the overall UK market. The
study provides explanation of law of supply and demand along with the description of market
equilibrium. Further, it shows about different kinds of market structures and the way these lead
to put their impact on Co-op Food business organisation. In the third part of study, explanation
about economic structure of UK is given along with its impact on selected firm. At the end of
project, it focuses on emerging or developing economies along with their impact on company.
Summary of UK economy, its economic system and characteristics
Economy of the United Kingdom comes at fifth largest national economy across the
world in terms of growth rate. While looking at the changes in GDP growth rate of UK economy,
it has been observed that from 2015 to 2017, GDP has declined from 0.5 to 0.3. In the current
era, in UK, situation of recession arises which lead to reduce the growth rate of economy. When
talking about the system of economy of UK then it has mixed economy which is mixture of
socialist and capitalist both. Being a developed economy in the world, mixed economy is the best
which helps to the firms in order to takebusiness decisions at their own up to some extent.
Moreover, characteristics of mixed economy system are as follows:
 Mixed economy is co-existence of two kinds of companies available in the corporate
world like private and public.
 In this, private business entities have fullfreedom to consume resources and property of
their.
 At the time of making adjustments of flow of money within economy, government of UK
takes corrective actions.
 Here, customers have authority to purchase and sell all the commodities.
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