Economic Growth and Development in the UK

This report discusses the economic problem of growth and development faced by the United Kingdom. It explores the background of the country, the theory of economic growth, and the role of the government in maintaining economic success. Find solutions and strategies for economic growth and development in the UK.

BUSINESS
ECONOMICS

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Background of the country and topic...........................................................................................1
Economic problem.......................................................................................................................2
Economy growth/ economic development..................................................................................2
Theory of economic growth.........................................................................................................3
How selected problem affect or could affect the success of the entities.....................................4
Government play major role in maintaining the problem for the country...................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The term economics means the applied money matters which give studies for the financial,
organizational and market related for the environment issues faced by the corporate. In this there
are certain factors are included are management, expansion and strategy by using the economic
methods and quantitative methods (Amoroso and Link, 2018). It is the concept which include
various factors scarcity, political factors and consumptions. It simple terms, it include various
components and functions of the market place for the economy such as supply and demand. It
focuses on the elements and the business operations for the economy. This report is based on the
country UK which is the popular country in field of all activities in terms of imports and exports.
Aim of this report is to evaluate economic problem related to growth and development which is
faced by United Kingdom. They have about 33 millions customers across the 16 countries. It is
the largest insurer for the leading life and pensions provider. In this report there is the
background of the financial markets and discussion of the major economic problem and relevant
facts and figures in from of the charts and tables and analysis of the topics that is affect for the
success if the business. The role of the government in advancing the success of country.
TASK 1
Background of the country and topic
UNITED KINGDOM, is the island country which is located in then north-west of
Europe and it comprises of the whole country in the island of Great Britain for getting the
world's largest commercial, in the financial and cultural cultures for Birmingham, Liverpool and
Manchester in England for the cardiff in walves. The origins of this country is to traced the time
of the Anglo which is require in the early 10 century for the significant contributions of the
economy, for the treaty of union and acts of the union thee is the political union in the history of
the Great Britian. They lost its 13 American colonies for rebuilt the second British Empire which
is based in the Asia and Africa. The UK took strong against the communist expansion after 1945
(Spieth, and Schneider, 2016). it has leading member of the United Nations for the international
organizations. There is the problem is occur in the country which is economic growth which
means increase or decrease in the production of the economic goods and services compared to
one period to another, there is the aggregate of the economic growth which is measured in the
terms of the Gross national product through their alternative metrics which is used sometime by
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the country. There is one more problem is economic development which is the process by which
the nation help in improvement of the economic, political and social well being of the people for
main focus on the innovation, skills and infrastructure for the overall economic growth.
Economic problem
One of economic problem is “Economic Growth or development” that us faced by
United Kingdom. Economic problem refers to the problem which is generally occur by make the
best use of the resources. This is exist when there is the needs and wants of the people are
endless, in this resources is available to satisfy the needs and wants which is limited. In simple
terms it describe the human behaviour relationship with ends and scarce that have alternative
uses. In United Kingdom, problem of the economic growth or development is faced, so they
apply the Neoclassical Growth Model for economic growth which is very important to apply the
economic forces. Problem of economic growth includes Fast growth that creates negative
externalities such as noise pollution and lower air quality arising from air pollution as well as
road congestion. More than this, the problem increases consumption of de-merit commodities
that damages social welfare. In UK, economic growth problem results in huge upsurge in
household together with industrial waste (Arnold, Kiel and Voigt, 2016).
Economy growth/ economic development
Economic growth or economic development is the problem which is related to the country
and society in which there is the rising incomes and there is increase in the consumptions,
savings and investment. In the economic development there is the distribution of the income is
highly use which is necessary for the progress of the goals that is associated with economic
development.
Economic Growth – This is the major problem which is happen in every economy for
their expansion, there is increase or decrease in economic growth which is based on the Gross
domestic product. In this they follow different paths to maintain sustainability in the economy,
there is the problem of resources which is very limited for all industry in the economy. In this
there is the problem is related to GDP and GNP, because through this economists calculate the
report annual data on incomes and expenditure for each sector in the economy. For the sustained
growth they have to lifts per capita incomes that help in raising the people from the extreme
poverty (Bernat, Lambardi and Palacios, 2017). By increase in the per capita GDP that helps the
households to increase the financial resources for saving the investment. They help in providing
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the new incomes for the people in work, they help in higher incomes to reduce the income for the
people to work. In this higher incomes help in reduce the income and wealth inequality. There is
the faster economic growth by the use of the higher profits which is reinvested for promoting the
productivity and capacity. In this growth can be accelerate for the changes happen in the pattern
of production. They can shift towards the dual economy in manufacturing and services for
example- service and tourism. Through the decrease in economic growth there is the high tax
revenue and also funds for finance the public and welfare spending.
Economic development- Economic development is the problem of the accounting for the
diversity levels which is depend on the growth per capita income across the countries and across
time (Nagy, 2016). It studies the conditions which study the income tax rates to generate the
diversity. There is the economic study of the economic and social development which include
the process for the economic well being and quality of the nation, region which is required for
achieve the targeted goals. In the economic development the main role which play a major role is
economic growth which is depend on the GDP. It focuses on the economy at large with the
socio-economic development. In context to UK, they have to focus on the economic
development of their country because if they don’t develop their economic development they
have to focus on the GDP which directly lead to increase their sales and revenue of the company.
It is the wider concept for the qualitative dimensions for the progressive changes in the health
and education. They take various actions to overcome the causes by intervening the factors from
the outside.
THEORY OF ECONOMIC GROWTH
Neoclassical growth theory is the economic theory that describes the outline of the
economic growth rate form the driving forces labour, capital and technology. From the credit of
having the credit for developing the introducing the model of long run economic growth. There
is the incorporated technology change into the model for the long run economic growth for sloe
incorporated technology for the change into model. The theory states that short term equilibrium
from the labour and capital in the production function. They play a major role in the influence on
the economy for continue with the technological advances. This theory depends on the outline on
the three factors labour, capital and technology. It helps in increase the development of the
productivity for increase in the output of the capabilities of labour. They explain the production
function for the function,Y= AF(K,L) in which Y is the gross domestic product, k is the stock of
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capital, l is the amount of the skilled labour in which A is the determination of technology which
cause shift in production function. There are two ways for incorporating the technology
parameter which implies increase in the productivity of labour. There is increase in the GDP for
maintaining equilibrium of the economy. In UK, they focus on the growth model for the
expansion of the company in increase the Gross domestic product of the economy in increase the
revenue of the company. It also helps in increase the profits for there to increase the economic
growth (Antony, Klarl and Lehmann, 2017).
How selected problem affect or could affect the success of the entities
Economic growth is very important for the grow and prosper in the output of the growth
by change in the gross domestic product for the success of the inflation for the resulting value
which is real growth. There is increase in the real economic growth for the indicator of the
opportunity. Economic growth reflects on increment in real GDP that is increase in value of
national income, expenditure and income. It results in improving living standards as it enables
consumers to consume various products as well as enjoying better living standards due to which
people of United Kingdom expects rise on living expectancy. Moreover, economic growth
creates higher output as well as promotes positive growth that generates higher employment
leading to reducing unemployment situations in a country, say United Kingdom (Kufenko and
Geiger, 2016). They affect the country’s growth by decrease in the productivity and investment
by increase the efficient for fuel demand and encourage the future economic growth. They
increase the resources from the demand and encourage economic growth for the used resources
in the investment cutbacks. They selling the luxuries change in the economic growth for increase
the upmarket brands in the economic conditions. It is the biggest impact on the national income
and level of the employment as well as standard of living for increasing in the GDP for increase
in the wealth of the country. Furthermore, it is analysed that economic growth encourages firms
to invest, in order to meet future demand. Higher investment increases the scope for future
economic growth that creates a virtuous cycle of economic growth/investment.
Government play major role in maintaining the problem for the country
 Expansionary fiscal policy- government play major role in maintaining the fiscal policy by
increase the dispensable income and encourage spending. Lower taxes means increase in the
budget deficit which lead to higher borrowing and in the recession there is the fall in
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consumer spending. In UK, they have to focus on the fiscal policy for maintaining the tax
collection by do tax planning.
 Expansionary monetary policy- By cutting the interest rates cutting the domestic demand
by normally independent of the central bank. They play a major role in providing the
economic and political stability which enables them to encourage the economic activity for
discourage the investment and economic growth. In UK, they focus on the monetary policy
for maintain the monetary transactions.
 Tax planning- By apply the Tax planning they have to focus on the tax cutting for take the
advantage of the tax rate by apply the tax cutting in the organization for increase the
economic growth and economic development (Bauer and Latzer,eds., 2016). In Context to
UK, they have to focus on tax cutting which is very necessary to save the tax for the
organizations.
 Stability- Government helps them to maintain their stability of the economy in the country
for increase the expansion of the industry in maintaining the stability of the industry in the
economy. In Context to UK, they have to maintain their stability in the economy, for
maintaining the position in the economy.
CONCLUSION
From the above reports it has been concluded that economics refer to the money matters
which is used for maintaining the relations of the financial requirements for maintaining the
financial positions in the environment. In this there are certain factors are included are
management, expansion and strategy by using the economic methods and quantitative methods.
In these reports they have to maintain the background of the financial markets in the United
Kingdom, in this they have to overcome the Economic problem and Economic development.
They have to use Neoclassical theory for the growth model and some steps by the government
for encourage success.
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REFERENCES
Books and Journals:
Amoroso, S. and Link, A. N., 2018. Under the AEGIS of knowledge-intensive entrepreneurship:
employment growth and gender of founders among European firms. Small Business
Economics. 50(4). pp. 899-915.
Churchill, S. A., 2017. Fractionalization, entrepreneurship, and the institutional environment for
entrepreneurship. Small Business Economics. 48(3). pp. 577-597.
Meoli, M. and Vismara, S., 2016. University support and the creation of technology and non-
technology academic spin-offs. Small Business Economics. 47(2). pp. 345-362.
Spieth, P. and Schneider, S., 2016. Business model innovativeness: designing a formative
measure for business model innovation. Journal of business Economics. 86(6). pp. 671-
696.
Arnold, C., Kiel, D. and Voigt, K. I., 2016. How the industrial internet of things changes
business models in different manufacturing industries. International Journal of
Innovation Management. 20(08). p. 1640015.
Bernat, L. F., Lambardi, G. and Palacios, P., 2017. Determinants of the entrepreneurial gender
gap in Latin America. Small Business Economics. 48(3). pp. 727-752.
Nagy, J. T., 2016. Using learning management systems in business and economics studies in
Hungarian higher education. Education and Information Technologies. 21(4). pp. 897-
917.
Antony, J., Klarl, T. and Lehmann, E. E., 2017. Productive and harmful entrepreneurship in a
knowledge economy. Small Business Economics. 49(1). pp. 189-202.
Kufenko, V. and Geiger, N., 2016. Business cycles in the economy and in economics: An
econometric analysis. Scientometrics. 107(1). pp. 43-69.
Bauer, J. M. and Latzer, M. eds., 2016. Handbook on the Economics of the Internet. Edward
Elgar Publishing.
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