Article Review - Economic Concepts And Models

This presentation discusses the main arguments of an article on economic concepts and models, with a focus on microeconomics theories and their application to main issues. The article highlights major challenges firms have to deal with when government takes decision of Brexit. The primary argument demonstrates rise in shipping prices of things across countries which will likely to rise the cost of trampolines in UK. As the summer season has started to arrive in UK, public demand for big outdoor toys like started to increase.

BMP4003 Business Environment
Assessment 1 - Individual Presentation

Article Review - Economic Concepts And
Models
Name:
ID:

Contents
• Introduction
• Explanation of main arguments of article with microeconomic terms
• The microeconomics theories and their application to main issues
• Conclusion
• References

Introduction
• Comprehensive understanding of business
environment assists firms to utilise their
resources effectively and in a way that helps
them to achieve target goals. Study of the
environment helps organisations to avoid
risks that they might face in future to ensure
smooth working of business operations.

Explanation of main arguments of article with
microeconomic terms
• The provided article highlights major challenges
firms have to deal with when government takes
decision of Brexit. The primary argument
demonstrates rise in shipping prices of things
across countries which will likely to rise the cost
of trampolines in UK. As the summer season has
started to arrive in UK, public demand for big
outdoor toys like started to increase.

Continue
• The second argument in the given article is the
difficulty of transporting items from regular
routes because of the Brexit bureaucracy.
Decision of Brexit has resulted in closing many
routes and ports from where hauliers used to
transport items before. Transporters now have
to bypass Welsh ports which leads to delay in
delivering items by almost one day.

The microeconomics theories and their
application to main issues
• Microeconomics is the behaviour of
individuals with references to modification in
prices, resources, revenues, ways of
production, etc. It is the process of allocating
available resources of a nation wisely so that it
meets all the demands arise.

Continue
• The microeconomic terms of demand & supply and
cost & production with references to main issues are
explained below:
• Demand and supply- This microeconomic
theory describes the interconnection of buyers and
sellers of particular items. Law of demand describes
measures by which the amount of product demanded
by consumers in market can impact its price.

Continue
• Cost and production- The microeconomic theory
of cost and production describes that cost of an
item is ascertained by sum total of all costs
involved in its production. Cost theory depicts that
costs of an enterprise highly determine its supply
and expenditures. It outlines the fact that deciding
the costs of products is a difficult process as many
factors need to be considered while doing it.

Conclusion/Summary
• From the information presented above, it has been concluded that deep understanding of
business environment provides stability and various opportunities to companies.
Production, distribution, controlling, consumption, etc. are some factors associated with
economics. It has two aspects macroeconomics and microeconomics.

References
• Alsaad, A. and Taamneh, A., 2019. The effect of international pressures on the cross-national
diffusion of business-to-business e-commerce. Technology in Society. 59. p.101158.
• Biloslavo, R., Bagnoli, C. and Edgar, D., 2018. An eco-critical perspective on business
models: The value triangle as an approach to closing the sustainability gap. Journal of
Cleaner Production. 174. pp.746-762.
• Kafetzopoulos, D., Psomas, E. and Skalkos, D., 2019. Innovation dimensions and business
performance under environmental uncertainty. European Journal of Innovation Management.

Thank you