Microeconomics: Customer Confidence, Labor Market, Digital Shift

This microeconomics report examines the customer confidence index and the impact of the COVID-19 pandemic on the labor market and the rise of the digital economy. It discusses how the pandemic and financial crises have affected GDP growth, exports, imports, and currency values, leading to unemployment. The report also highlights the exploitation of labor, reduced labor rates, and the shift to digital platforms for business operations. It further analyzes the inequalities in the labor market, comparing the UK and the USA in terms of merger and acquisition activities. The report concludes that the pandemic has significantly boosted the digital economy, transforming how businesses operate and promoting digital payment practices and e-commerce.

MICROECONOMICS

Table of Contents
Section 1......................................................................................................................................................3
Section 2....................................................................................................................................................11
Section 3....................................................................................................................................................12
REFERENCES..........................................................................................................................................14

Section 1
( a )
Customer confidence index is defined as an economic indicator published by
organization. This is a record denote about the confidence level of customers own in products
available in economy. The index denote about the confidence level customer hold in the products
and devices offer in the country. The objective of this index is denote the fact that how satisfied
are the customers are in economy. The high the index is would denote the more the customer in
country are satisfied with products an services offer in the country. Increased customer
confidence index demonstrate about the high growth rate of economy. This is further reflected as
a rapid growth rate of economy. The role of the customer confidence index is always reflect the
fact that this entire factor project the pace at which economy is growing rapidly (Baker, Koebel
and Tedds, 2021). In the economic terminology this factor reflect with all the respective facts ad
aspect that would support the venture for enhancing growth and development in economy. This
index is always try to increase by the government as it would further empower to contribute
more in the economic growth of the country. The role of this index is significant for the
organization as it will support the venture for addressing the economic growth in the best way
possible. The more the index is the more the customer will be motivated to buy and procure the
products offer in market.
(b)

1.1 (c ) (I)
(c) (2)
The financial crisis occur in 2007 and 2008 which is further happened in covid has
changed the entire economic situation of countries. All these pandemic situation could result as a
major economic crisis in the region. The impact is in the form of reduce GDP growth rate, export
decline and also the increase in import. Further the crisis could also result into the low currency
value that will further influence the value of currency in the market. The currency exchange
value significantly affect over the pricing of the product in region. Due to the crisis in economies
there are a huge issue of unemployment arises in the economies. All the three economies has
been impacted rapidly that will further affect over the rapid growth and development of
economic activities. All these financial crisis involve covid is the latest crisis at economic lvel
which society has faced. All this result into the decline in economic growth at the global level.

(a)
The covid 19 pandemic has significantly affected the whole labor market. The pandemic
could raise the situation where the labor rate could go down, exploitation of labor has also started
and such like of negative impacts addressed in society. The covid 19 pandemic has created a
vital impact over the labor market. He reduced labor rate could be the possible impact that the
pandemic has created over the economy. The another impact is in the form of exploitation of the
labor. This is a significant level of impact this whole pandemic situation has created. Further, the
export of labor from country has also stopped (Eichhorst, Marx and Rinne, 2020). This could
result into the limited labor power in countries. The another impact is sch that this whole crisis
could result into the international relationship as due to the lack of labor production could not
sustain to its actual pace. All these are the result of the covid 19 pandemic. The crisis situation
has been significantly affected the whole labor situation in the country. All these are the key
impact ad influence the entire covid pandemic has created over the economy.
1.2 ( b)
The ILO's Global Wage Report depicted that in recent time inequalities has arises in the
sector. The pandemic has completely changed the whole situation. The crisis situation could
fundamentally affected the crisis situation that will further influence the entire labor market. Th
rising economic spectrum could raise the inequality ion the market. The rising completion and
improved the demand could lead to the labor exploitation and the result of it will influence
negatively the entire labor situation in the economy. Inequality is considered to be the most
recent development that has been arises in the ILO Global wage report submitted (Nagel, 2020).
This could completely change the entire situation that ha further affected the entire about
situation in country.
The recent time of development has supported the entire situation in a different manner.
The recent crisis situation of COVID 19 pandemic has changed the entire scenario. The whole
pandemic crisis could lead to exploitation of labor and also in the overall spectrum of the
economic activity of country. IN the economic situation this entire covid pandemic has resulted
into the increased level of inequalities in labor market. Further the result of this is such that it
could further lead to the huge level of labor crisis in economic activity.

1.2 ( c )
G7 Countries
G20
OECD

EUROPE Region
1.2 ( D )
The pandemic has transformed the entire labor market. The pandemic could lead the
digital economy as this was the only medium to operate the various functions. The digital

economy could further support and empower the economic spectrum to lead to the operations of
the organization. People are working at home like condition and operating the whole functional
activities associated with the organization. The whole situation of covid pandemic could not
allow the employee and labor to come at the premises of the organization and did not supported
to witness the office culture (Piroșcă And et.al., 2021). The whole situation imposed the
organization and companies to operate from home that is further resulted into the better growth
and development options for the entire economic activity. The result of this is such that the entire
economic activities has resulted into the work from home like a practice that is further result into
the emergence of the digital economy. This economy has rapidly grow in the market along with
the other traditional economic roues. All the operations such as hiring of employee, operation
management related task and such other are operating solely over these digital platforms. There
is a crucial impact ad influence digital economy has created over the entire economic spectrum.
The role of digital economy is significant in the overall economic development of the country.
Labor market has completely changed and diversify as a result of covud 19 pandemic.
1.3 (a)

1.3 ( b)
The organization adopt the working form home practice. This has supported the business
houses to continuously sustain the business operations and efficiency of the functions operate in
the organization. The role of the digital economy played a significant role in the overall growth
and development of the business houses witnessed. The recent tie of development and growth
has guided the companies to sustain to the digital platform for delivering operations. The current
time and situation has motivated and empower the business houses to deliver the operations over
digital channel (Tubaro and Casilli, 2022). This has wisely supported the business houses for
delegating the digital operations. The world is witnessing the digital economic approved that has
wisely supported the businesses for operating all different functional activities in the
organization. This is a similarity between majority of company that they operated the functions
over digital platforms. Only the limited staff were asked to come and visit the office the rest of
the employees and were force were stood at home and delivered all different operations and
functional activities. Further the pandemic has motivated the business venture to support the
digital marketing ad promotional activities to sustain the economic growth and development of
the economies.
1.3 ( c )
The pandemic situation has significantly affected the financial market of the economy.
The entire situation of pandemic has challenged to the merger and acquisition market of the

country. The financial resource were limited in number that could support the business houses
for delegating the merger and acquisition situation of country. The role of the economic activity
is to support the businesses houses for delegating the entire merger and acquisition situation in
the country. The role of the financial structure is to support the entire practice related to the
merger and acquisition in the country. United Kingdom is growing rapidly but due ti the
pandemic the growth rate of GDP has been identify as -9% approximately (Žakelj, 2021). RTHis
could itself demonstrate the fact that the financial crisis is monitored in the economy of United
Kingdom. The pandemic situation could result into the reduced level of economic growth and
transportation in the economy. Merger and acquisition is solely the economic activity that has
supported the business houses for delegating the entire economic situation of country. As the
financial situation in the country could further affect and influence to the economic activity of
country. The merger and acquisition practices are solely influenced with the level of finances
available with the companies. This whole activity could further empower the business houses for
delegating the best suitable merger and acquisition practice in the country.
1.3 ( d )
ILFR Report has compared the UK and USA. The report and study shown that the merger and
acquisition has channelized in United Kingdom more effectively than in comparison to the
United States. This is because of the tee economic activity of the UK is rising rapidly. The
pandemic situation has completed affected the M&A practices of the country. The pandemic
could demolish the market situation.
Section 2
The covid pandemic has boosted the digital economy at a global level. The economic
activity has supported the digital literacy and the digital economy transformation. The pandemic
could imposed the organization and business houses to practice work form home that will fuehrer
empower the stakeholder to approach all operations in the best way possible. With the pandemic
situation arouse the world seem to be stopped. Knockdown practice could completely stop the
production and other respective service delivery. In such a time this was required for the
stakeholder and management at different organization to practice work from home practice fro
executing all different business objectives. In such a situation this is important for the
stakeholder for adopting this practice in process to approach the business operations in well

alamced manner (Bhattacharjee, Nguyen and Venables, 2020). In such a situation this is
significant for all the venture to deliver the economic activities. Online platform has allowed the
organization to cont5rol and implement all different operations such as management, human
resources and such other practices. In such a situation this is crucial for the stakeholder to
entertain the respective services to execute the best level of business growth and development.
The digital transformation is witnessed as the key progress the pandemic situation could arise in
the economic situation at a global level. Especially the digital payment become the vital success
in the pandemic situation as in United Kingdom and also at the global level the digital payment
could maximise ad expanded significantly. All this result into the legal transaction occur without
any corruption like of situation.
The digital payment could support the business houses to not only book the products and
service over the various digital platform but also to made easy and convenient payment to
complete the whole purchase. All this result into the rapid growth and boost in the overall
economic development of the country. Progresses of digital payment and the priority of the
people to make the digital payment has seen a huge success even in te time of cvoid pandemic.
Further the tenure could emerge to e-commerce sector of United Kingdom. Before the pandemic
situation people were usually prioritized the off line mode of trading but due to the pandemic
people starting focusing more on the e-commerce trading practice to complete the buying
activity (Banga and te Velde, 2020). This time has directed the stakeholder and government to
promote the digital payment practice more so that more economic development can be
supported. In the current situation of economic stability due to the covid pandemic the GDP of
country has faced a rapid decline. The rate of GDP growth is negative that clearly demonstrated
about the downfall in the economic situation of country. It can be stated as a fact that the digital
transformation is seen as a rapid level of growth in UK even in a situation wheer the overall;
GDP growth rate went into negative rate.
With the emergence of Covid – 19 pandemic, people across the world seems to have
restrict their physical interactions and this has caused a major impact over the way businesses are
conducted. People are now prefer to go for buying through various digital platforms instead of
going out for making the purchases of both luxurious and necessities. Before pandemic, the
growth rate of online shopping was just 4.5%, but currently the scenario has changed in a great
way due to the restrictions imposed on movement of people, lock downs and social distancing