This article review discusses the main arguments of the Outdoor Toys company based on microeconomic concepts and the impact of Brexit on the shipping industry. It applies the theories of demand and supply, and cost and production on the given issue.
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TABLEOF CONTENT INTRODUCTION EXPLAINING THE MAIN ARGUMENTS USING MICROECONOMIC TERMS/ CONCEPTS APPLYING THE ISSUES ON THE TWO FACTORS CONCLUSION REFERENCES
INTRODUCTION Economics is defined as the social science that used to have study about the production, distribution and the consumption of the products and services. The economics concepts sued to explain that how the person should purchase in the market. There key concepts of the economics are supply, scarcity, demand, costs, etc. The current presentation is based on the Outdoor Toys which is the toy producing company.
EXPLAINING THE MAIN ARGUMENTS USING MICROECONOMIC TERMS/ CONCEPTS Microeconomics refers to the study of what is going to happen when the single person is making the choices in order to have changes in the incentives, prices, various method of production and resources. By having the positive microeconomics it makes to know about the economic behaviour of the people and what they expect from the changing condition. The individual in the economy are often grouped in the buyers, sellers and the owners of the business.
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CONTINUED.... As the business of the James Owen, is used to produce some products in the United Kingdom and by rising in the shipping cost will be more expensive and this will affect the production of the company. The main argument was in the articles was increasing in the Trampoline prices by 50% onshippingcost. Asthecompanywasthetoymanufacturingcompanysothe production of the company will be affected by the rise in the prices of shipping.
CONTINUED By increase in the shipping prices the owner of the Outdoor toys, James Owen has predicted that by increase in the shipping prices will affect the cost of the trampoline in the UK in this summer. The prices of the trampoline may be increased by the 40% to 50 % in the coming summer in the Untied Kingdom. The owner of the company also predicted that the port congestion will be getting increased by the happening of the Brexit. The Brexit was happened and in this the United Kingdom has withdrawal its process from the European Unions.
APPLYING THE ISSUES ON THE TWO FACTORS Demand and supply Cost and production
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Demand and supply Demand: Demand is defined as the economic principles which refers the customers to purchase the goods and services and in return they must pay prices for the goods taken and services availed. By having the other factors constant, if there is increase in the prices of the products and services than there will be decrease in the supply of the products and services in the market. As there is the inverse relation between the demand and supply in the market.
CONTINUED.... Costs and production-it refers to all the costs that are included when a firm offers a service a good. Cost and production of trampoline also get affected because of Brexit. It has impacted employee salary, wages, cost of material, labour, factory maintenance and shipping costs. Nowadays, people are more concerned about cost of product, they are more attracted towards low cost. If customer feel that they are not getting enough benefit of product price they will go for other option and switch to other company to satisfy their purchasing needs says owner of the outdoor toys. It has been said that there is an inverse relationship between costs and production.
CONTINUED.... If the production cost is lower than the company can achieve high profitability. However, low production cost do not necessarily guarantee a high profit margins. Basicallyitdependsonsituationofmarketand business economy. If the production costs are expenses such as labour, raw materials then company has to make large amount of investment to sell it to customers. It has been noted that Brexit has impact the variable cost of the firm which include utility cost, direct labour.
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CONCLUSION From the above presentation it is concluded about the issue caused by the Brexit which has affected the shipping industry. The presentation has evaluated about the main arguments that is based on the articles on the microeconomic concepts. Further this presentation has described the two main theory applying on the given issue in the presentation.
REFERENCES Corsetti, G., Crowley, M. and Han, L., 2022. Invoicing and the Dynamics of Pricing-to- marketEvidencefromUKExportPricesaroundtheBrexitReferendum.Journalof International Economics.p.103570. Crowley, M .A., Corsetti, G. and Han, L., 2020. Invoicing and the Dynamics of Pricing-to- Market: Evidence from UK Export Prices around the Brexit Referendum. Guerrina, R. and Masselot, A., 2018. Walking into the footprint of EU Law: unpacking the gendered consequences of Brexit.Social Policy and Society.17(2). pp.319-330. Saville, C. W., 2020. Mental health consequences of minority political positions: The case of brexit. Social Science & Medicine. 258. p.113016.