Business Environment and Economic System of UK

Project

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
General economic concerns.........................................................................................................1
Monitory Policy...........................................................................................................................3
Fiscal Policy.................................................................................................................................5
Capital market..............................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is mentioned to entirety of entire intrinsic and extrinsic factors which
have huge potentials to influence a business. At same time, macroeconomic policy is defined as
economic branch which deals with structure, decision making, performance along with
behaviour of an economy (Fontana and Setterfield, 2016). General economic concerns engross
situations related to income distribution, government economic policies, employment as well as
labour markets. Monetary policy is the action that is implemented by nation’s central bank with
the objective of controlling money supply in order to attain macroeconomic objectives which
promote growth of sustainable economy. Similarly, fiscal policy is usage of revenue collection
addition to expenditures of political system for influencing economy. Capital market is defined
to financial market wherein equity backed securities together with long term debt are purchased
and sold. The present report is prepared on business environment and economic system of UK
which is one of extremely developed social market addition to market oriented economy. The
report includes information related to concepts including fiscal policy, general economic
concerns, capital markets and monetary policy.
MAIN BODY
General economic concerns
Introduction
General economic concerns are defined as the main factors in which government of a
nation emphasis the most. Economics is one of social science that is concerned to production,
distribution along with consumption of products and services. In context to economic system of
UK, it is seen that business concerns continued to solidify their expenditure plans and
manufacturers are buffeted through stockpiling efforts. The few of general economic concerns
that needs more emphasis of UK’s government includes employment challenges, uncertainty
from Brexit, relative inequality, cost push inflation and so forth (General economic concerns of
UK, 2019).
Government policies along with impacts on business environment
Government policy is defined as rule as well as principle which hopefully guides in better
decisions and results in positive results for influencing economy or community. Some of
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government policies that are implemented by UK’s political system and their impact of business
environment are as follows:
Investment in infrastructure: It is one of UK’s government economic policy in which
huge money are planned to invest for developing infrastructure facilities. Moreover, National
Infrastructure Plan is also developed with coherent vision for UK’s infrastructure. It impacts
positively on business environment of companies in the nation. For example, investment in
communication, road networks and scientific excellence has improved ways of Tesco to perform
operations effectively and build healthy relations with international companies.
Enhancing finance access for business: UK’s government has set an economic policy
that is Funding for Lending Scheme through which it provides businesses greater access of
finance. In this economic policy, government of the country is offering strong incentives for
businesses to boost their establishment. With this, business environment are impacted in positive
manner as strong incentives helps small entity like Captify Ltd with significant investment to
establish, manage and attain huge growth in the economic system (Government policies, 2015).
Labour markets as well as impacts on business environment
Labour market is the availability of labour as well as employment in context to demand
and supply. In UK, labour market is also termed as job market wherein employers of business
provide demand and employees provide supply. Labour market of UK has experienced certain
fundamental changes in terms of decline in full time manual labour manufacturing jobs, net
migration, increase in self employment, growth in female participation, decline in trade unions as
well as growth in flexibility of labour market. It impacts positively and negatively on business
environment of UK. Some of its positive impacts are analysed in form of increasing flexible
along with part time working hours that are required in service sector, enhancement in proportion
of women within labour force and less influences of Union. However negative impacts of labour
market are seen in context to overcrowd as rapid increase of labours because of migration results
in falling living standards and creates shortage of various amenities (Allen and Hamnett, 2018).
Income distribution and impacts on business environment
Income is a flow that measures money receipt for an individual per time period. As
compared with other developed nations, UK has huge unequal income distribution. it is seen that
majority of households have disposable income below than the mean income which is £34,200 as
of 2018. In UK, income is distributes as per categorises that are Bottom Fifth (8%) Second Fifth
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