Economics and International Trade- Assignment

Economics and
International Trade

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Industry background ...............................................................................................................3
2. An analysis of market structure ..............................................................................................4
3. Determinants of demand and supply ......................................................................................6
4. Demand elasticity....................................................................................................................8
5. A recent event that has substantial impact on construction industry......................................9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Economics is a term that represents a study of social science which is related to how
people put scarce resources for production, distribution and consumption individually and
jointly. It has two branches; one deals with the aggregate behaviour of national economy,
regional economy while other deals with the behaviour of individuals. The present report will
highlight the scenario of construction industry in UK, the type of market in which the industry
exists, determinants of demand and supply for industry's product or services. Further, the report
will show the elasticity of product or service. VINCI construction is construction , civil
engineering and facilities management organisation. The entity is a subsidiary of VINCI group
based in France. In UK, the company has employed over 9000 employees.
MAIN BODY
1. Industry background
Construction is that sector of economy which is concerned with preparation land,
modifications, construction, repairs of structures and other property. This industry is a significant
reflection of nation's overall economy (Kuifengl, 2015). UK's construction industry accounts for
about 6 % that is around £113 billion of the country's total GDP. The construction output of the
country contains a quarter of construction output from public sector while remaining three
quarters from private sector. The construction industry mainly has three areas such as :
 social and commercial which is around 45 % of total construction activities,
 Residential which is 40%
 Infrastructure which is 15 %.