Political and Economic System of United Kingdom

INDIVIDUAL REPORT

Table of Contents
POLITICAL AND ECONOMIC SYSTEM OF UNITED KINGDOM..........................................3
CURRENT MEASURES AND IT'S IMPACT...............................................................................4
REFERENCES................................................................................................................................1

POLITICAL AND ECONOMIC SYSTEM OF UNITED KINGDOM
In UK there is a combination of political scenarios which consist of the monarchy,
parliamentary system and unitary system. The country has a combination of authorities which
comes together and decides. There is a political instability in the UK currently as prime minister
Boris Johnson has stepped down (Lampadarios and Kyriakidou, 2020). For a country like UK
such moves affect the trade feasibility in the country. Such instability makes the foreign
investors really reconsider the decision of investing in the country. The decision-making of
foreign investment is highly influenced by the political situation of the country as the new
government may enforce certain laws and regulations whi9ch may not be in the favour of the
business. Hence, the investors uphold the investment decision for the time being.
Also, UK government's recent move 'Brexit' has affected the global business
environment. As various trade barriers, taxation, other policies has levied the cost which has
impacted the business cost for the people. According to the political theory of Marxist, there is
a constant focuses on the struggle among working class and capitalists. It creates class conflict
and exploitative relationship in the country. The country has constantly faced the strong political
measure which have supported the foreign investment. Yet to save the domestic businesses
county is also taking the measures which can ensure that business remains afloat. Consumerism
in the country is at all time high which gives space to the foreign investors to have business in
the country (Montezuma and McGarrigle, 2019).
The economic system in the country is totally derived by the demand and supply forces.
And some bodies have been created which constantly regulate the demand and supply forces in
the county. According to the Keynesian economic theory the government is the most vital
driving force in the economy and the aggregated demand is measure as a sum of the spendings
by the households and businesses. In united kingdom there is free entry to the foreign
investments and businesses as government has established the same set of rules for both
domestic as well the foreign investor. In the eyes of the UK law foreign investors are treated no
different from the domestic ones. This system makes foreign investor feel welcomed in the
country.
Yet there are some limited areas where foreign investments are allowed only some
percentages like real estate. There are few government owned and controlled industries which
are essential to the county such as gambling, betting, atomic energy, railways etc. therefore this