Large Firms' Impact on UK Economy

This assignment examines the significant contributions of large organizations such as Tesco and TUI to the UK economy. It discusses their impact on employment generation, economic growth through exports and taxes, and trade independence enabled by advanced technologies. The analysis is based on insights from academic sources like Dunning (2013) and Teece (2014).

INNOVATION

Table of Contents
P3 Contribution of large
organisations to the UK economy..............................................................................................1
REFERENCES................................................................................................................................2

P3 Contribution of large organisations to the UK economy
Large corporations contribute well in the development of UK economy. There are many
big firms such as Tesco, Marriott hotel etc. those which are operating their business at large scale
and their profit is too high as compare to small entities (Dunning, 2013). Contribution of large
organizations in UK economy are discussed as below: Contribution through employment: These big firms provide employment opportunities to
the population. They recruit skilled people those who can work better for them. By this
way GDP of the nation get improved soon. That supports in reducing income problem of
persons and improve their living status (Teece, 2014).
 Economic contribution: Large corporations units earn high profit and they pay high tax to
the government. Exports and import businesses increases value of currency and due to
this foreign currency get increased in the United Kingdom, that makes its economy
stronger. TUI is the large business unit which operates in travel and tourism sector. It
arranges travel packages for international clients that increasing inflow of traveller in the
country. By this way foreign reserves of the UK get enhanced. That is why it has
contributed well in the economic development of nation (Dunning, 2013).
 Independence of trade and innovation: It is another contribution of large organizations in
the UK economy. UK has sufficient raw material and it has highly advanced technologies
that support the nation in working its operation independently. By this way trade cost get
reduced (Teece, 2014).
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REFERENCES
Dunning, J. H., 2013. Multinationals, Technology & Competitiveness (RLE International
Business) (Vol. 13). Routledge.
Teece, D. J., 2014. The foundations of enterprise performance: Dynamic and ordinary
capabilities in an (economic) theory of firms. The Academy of Management
Perspectives. 28(4). pp.328-352.
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