Microeconomic Concepts and Models - Article Review

This presentation discusses the main arguments of an article on economic concepts and models, and their relevance to the current business environment. It also explores the application of microeconomic theories such as demand and supply, and market structures to resolve the issues highlighted in the article.

BMP4003 Business Environment
Assessment 1 - Individual Presentation

Article Review - Economic Concepts And
Models
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Table of Content
• Introduction
• Explaining the main arguments of the article using microeconomic concepts
• The two microeconomic theory and its application in relevance to the main issues
• Conclusion
• References

Introduction
• Business environment refers to the sum of
all micro and macro factors which
influence overall productivity or
performance of the company. It has direct
or indirect impact on the operations, sales
and working of any organisation which
leads to hider or foster the success of
company.

Explaining the main arguments of the
article using microeconomic concepts
• In the article, there are various problems that
are generated due to the decision of Brexit.
The first challenge after this decision is
highlighted in the article of case study is
increasing shipping costs of various
transportation which also enhance the cost of
trampolines in UK.

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• The another issue highlighting in case study is
huge demand of the Chinese products in all
over the world which leads to increase the
burden on existing shipping capacity of the
nation. More than half of the population in
world prefers Chinese items because it is more
affordable or durable as compare to other
expensive items.

The two microeconomic theory and its
application in relevance to the main issues
• There are various microeconomics theories
such as demand & supply, economic profit,
market structures and cost & production which
played the major role in evaluating the exiting
problems of increasing shipping and
transportation cost.

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• The application of these theories to resolve
the main issues are as follows-
• Demand and supply- The main
cause of rise in the price of shipment or
transportation is increase in demand and
decrease in supply.

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• Market structure- The concept of market
structure shows the differentiation in the
operation of business and it categorised their
growth according the goods and services
they offer in the market. It also represents
the impact of micro and macro factors on
their activities, working, productivity and
profitability.

Conclusion/Summary
• As per above presented information, it is concluded that there are various issues such as
increased in demand of items, barriers, restriction of various political parties which leads
to increase in the cost of shipment and transportation. As well as there are also, many
microeconomic concepts such as market structure and demand or supply in any country.

References
• Arnold, D. G. and Bowie, N. E., 2019. Ethical theory and business. Cambridge University
Press.
• Franklin, D. and Marshall, R., 2019. Adding co-creation as an antecedent condition leading
to trust in business-to-business relationships. Industrial Marketing Management. 77.
pp.170-181.
• Isakova, N., 2019. Sector-related opportunities and threats for small business starters in the
Ukraine. In Entrepreneurship and SME research: On its way to the next millennium (pp.
81-91). Routledge.

Thank you