Government Economic Policies and their Impact on Business Environment

PROJECT ASSESSMENT
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1: General economic concern......................................................................................................3
3: Monetary policy.......................................................................................................................5
4: Fiscal policy.............................................................................................................................6
4: About capital market..............................................................................................................8
CONCLUSION................................................................................................................................9
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INTRODUCTION
Government of country use economic principles and policies to run their country’s
economy in better way For this purpose they use various policies and instrument which help in
maintain sustainability in business environment as well as help in growth of country. This report
includes how government use labours policies, how they distributed income, use of monetary
policy which is a instrument of central bank for pertaining control of the availability cost and
money credit with the help of monetary measure to achieve specific goals. Government also use
fiscal policy which use their taxation, public debt, budget methods to control the cash outflow of
the economy. Fiscal policy is used for mobilization of resource and control supply of credits.
This report also define about use of capital market and its instruments for issuing primary and
secondary securities in market to raise funds of investors. All these policies and financial market
are developed for run successful money cycle and provides allocation of scares resource in
effective manner through which government able to attend their goals of economy development.
MAIN BODY
1: General economic concern
i. Introduction to general economic concern
Economic concerns simply refer to the issues which affect the actual growth of an
economy within United Kingdom. Existence of Brexit has led to the uncertainty as well as new
tax reforms are introduced for the different countries of European Union which let down the
profitability margin of the large company exist within United Kingdom. It lead to negative
implications like fall in the wages, living standard of people and lead to increase in burden
associated with government debt. Local residents have to suffer a lot as earlier they used to
experience the leverage associated with free trade agreement. Similarly, other uncertainty can
directly decline the foreign direct investment and affect the supply chain that exports the services
to Europe. Significant efforts need to be made by the authorities of UK in order to upgrade its
condition and work for the concerns that can decline overall economy (Capón‐García and et. al.,
2013).
ii. Government policies and their impact on the business environment
The policies of UK government cover all the aspects which are associated with
employment relation, environment and welfare of overall society. Implication of desirable
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