Impact of Fiscal and Monetary Policy on UK Business Activities

INTRODUCTION
TO BUSINESS
ENVIRONMENT

TABLE OF CONTENT
■ INTRODUCTION
■ TASK
■ CONCLUSION
■ REFERENCES

INTRODUCTION
■ Business environment can be defined as sum total of all that external and internal factors that
affect business. Macro and Micro both types of factors can impact running of business. Micro
factors that can affect business are suppliers, competitors, employees and market
intermediaries.
■ Macro environmental factors which can affect and influence business activities are social,
economic, technological, environmental and many more. These factors can lay positive as
well as negative impact on working of business.
■ To adjust in business environment organization needs to follow a flexible approach, so that it
can help them in growing. Present report will lay emphasis on impact of monetary and Fiscal
policy on activities of United Kingdom business organization. It will also analyze how the
develop development in global and regional aspects shape business activities. Report will
also lay emphasis on global and regional factors affecting the running of business in United
Kingdom.

Meaning of economy
■ A country’s economy can be defined as the huge
combination of all tasks which are being related to
production and consumption of goods and services
and also the supply of money is being included in it.
■ The economy is defined as a social domain that
emphasize the practices, discourses, and material
expressions associated with the production, use, and
management of resources. Economic agents which
perform all economic activities consists of individual,
business, organization or governments.

Explain how the economy is formed
■ It has been analyzed that economy of United
Kingdom is being considered as sixth largest and
measurement of this has been done by Gross domestic
product.
■ Also it has been considered as ninth largest when
measured by purchasing power and economy of
United Kingdom is taken as twenty second largest
when measured in terms of Gross domestic product
per capita. Economy of United Kingdom is 3.3% of
GDP of world.
■ Various changes have been taken place in structure
which is economic of United Kingdom. It has been
analyzed that changes were really necessary for
development of economy of country.

Explain what is meant by Fiscal Policy
■ Fiscal Policy can be defined as that policy in which
government is engaged in adjusting levels of
spending and tax rates so that they can monitor and
lay impact on influencing economy of nation.
■ This policy is also known as sister strategy to
monetary policy, which is maintained by central
bank and affect money supply of nation.
■ This policy can help country in achieving and
reaching out their economic goals and objectives.
Economic phenomena can be controlled by
government by making use of Fiscal policy.