Business Economics : Assignment
17 Pages4990 Words309 Views
Added on 2020-01-06
Business Economics : Assignment
Added on 2020-01-06
ShareRelated Documents
Business Economics
Table of ContentsINTRODUCTION ..........................................................................................................................3TASK 1............................................................................................................................................3A: Economic problem of scarcity, demand resource allocation and equilibrium in the market.3B: Evaluation of the importance of different marketing systems and economic decisions........5C: Explanation of elasticity of demand and assessment of its significance................................6Task 2...............................................................................................................................................7A: Implication of pricing and corporate objectives on operations of Celsa Steel Company......7B: Impact of different market structure of pricing decisions of business ..................................7C: Evaluation of impact of UK regulations on market power of Celsa Steel company informulation of pricing strategies.................................................................................................8Task 3...............................................................................................................................................9A: Analysis of change in UK economy in 21st Century and its impact on businessenvironment of Celsa steel company..........................................................................................9B: Evaluation of tools available to meet changes described by macroeconomic policies........10C: Evaluation of economic performance of the UK economy in global market on the basis ofkey indicators............................................................................................................................11Task 4.............................................................................................................................................12A: Description of theory of comparative advantage.................................................................12B: Analysis of impact of emerging economies such as BRICS on the developed economies..13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15
Illustration IndexIllustration 1: Supply and demand curve ........................................................................................5Illustration 2: Contribution of steel industry in UK economy.........................................................6Illustration 3: workers employed in steel industry (in '000)..........................................................11
INTRODUCTIONEconomic system consists of production, distribution and allocation of resources in acountry. It can be used to measure the productivity and capacity of a country. UK has been thefifth largest economy in terms of GDP and ninth largest in terms of Purchasing power parity(PPP) (UK economy at a glance, 2016). It has been among the fastest growing economies of theworld with a growth of 2.1 % annually. In the financial crisis of 2008, UK had to face recessionwhich continued for almost two decades. Since then, government has made many policieswhich have helped in economic recovery of the nation. The report is based on the nature andcharacteristics of UK economy as well as its impacts on the business organisations. Celsa SteelUK has been facing problems in their operations and it has affected their pricing decisions.Contribution of steel industry in the UK economy has declined in the last ten years. There hasbeen scarcity of demand and supply which has affected their business. TASK 1A: Economic problem of scarcity, demand resource allocation and equilibrium in the marketEconomic problem occurs because resources are limited and wants are endless.Government has to decide what to produce, how to produce and for whom to produce. It takesinto consideration production, consumptions and distribution of goods and services (Williams,2015). Demand and supply have to be equal to achieve the market equilibrium. Celsa steel hasbeen facing problem in their business because trading conditions are rapidly deteriorating in UK.Steel industry is very important for the growth of economy but it has been contributing less to it.Most of the steel is exported by Celsa steel but they are facing tough competition from China(UK steel industry crisis, 2016). It is expensive to produce steel in the country because electricityprices are higher than other EU nations. Business rates and strong pound have further made ittough for them to survive in the market. It has dragged down the economy with it in the last tenyears. Market equilibrium is not achieved in the steel industry of UK because quantity suppliedexceeds the quantity demanded in the market. Four major economic problems in UK are asfollows:Problem of allocation: The main problem with resource allocation is to decide whetherto produce consumer goods or capital goods (Strumickas and Valanciene, 2015). All theactivities have to be prioritized in order to efficiently allocate the resources.
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Impact on Economy and Its Business Environment - Reportlg...
|15
|4355
|46
Business Economics on Asda Store Ltd- Reportlg...
|16
|4599
|170
Business Economics INTRODUCTION 4 Overview of UK Economylg...
|17
|5199
|344
Introduction to the Business Economicslg...
|25
|6267
|52
Report on Business Economics - Scaricty and Demandlg...
|13
|4251
|49
Business Economics of Tesco : Reportlg...
|15
|5067
|100