Solved Assignment 4 for Business and Management Studies

This assignment provides a comprehensive analysis of the capitalist economy of the United Kingdom, exploring its implications on various industries. It also delves into the effects of Brexit on British businesses, including small firms and construction companies. The report discusses climate change as a global issue created by human activities and concludes with a summary of key findings.

Understanding Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Explaining the reason United States of America is considered as a capitalist country...........1
2. Meaning of left and right wing...............................................................................................1
3. Identifying the advantages and disadvantages of competition................................................2
4. Explaining the term of ‘climate change’ from scientific point of views.................................2
5. Explaining the term ‘fracking’................................................................................................3
6. Political impact for UK business from Britain leaving the EU...............................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Establishing business in today's competitive era is a difficult process as it requires in-
depth knowledge and understanding of business concepts and theories. In competitive world, it is
essential for individuals to develop understanding about business son that the growth of the
business can be promoted in a systematic manner. It assists person in enhancing their knowledge
about various risk and factors that have great effect on business operations. Study or
understanding about business also allows individual to develop various skills that are required
for becoming a successful entrepreneur. It provides person an opportunity to increase risk
bearing capacity and develop various qualities that could be used for solving business problems.
TASK 1
1. Explaining the reason United States of America is considered as a capitalist country
The USA is considered as Capitalist country as it consists of all unique elements of
capitalism. It is a state which is totally different from others like Mexico, Canada, etc. People in
USA use dollar for facilitating transactions. The country has classic structure that consists of
capitalist Trump, Morgan, Koch s, Malone, etc. who have control over production as well
activities but does not produce anything. The majority of people who produce product for these
big authorities are able to earn only limited income that is required for fulfilling their basic
needs. It is the country where individuals have to search for work in order to earn income for
their survival. In simple words, USA is considered as a capitalist country as it is dependent on
other countries for its economic growth (Hudson,2017.) The constitution party of United States
is right-wing political party. However, green party holds the ideologies of left-wing in the
country.
2. Meaning of left and right wing
Left-right political compass is an instrument for classifying political positions, ideologies
and parties. Left wing indicates the social system and ideologies of force for instance socialism,
communism, as well as progressivism. The right-wing term indicates the social systems as well
as ideologies of freedom for instance capitalism, constitutional republicanism and classical
liberalism. Left as well as right wings politics are often represented as opposing parties. It is the
right of person to choose right or left wing. Political parties are classified on the basis of their
ideologies. The members in right wing political parties believes that there are certain orders' and
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hierarchies that are inevitable normal and natural typically supports the position on the ground of
law, economical sands cultural factors. Left wing political party’s supports tradition, hierarchy
etc. The parties that set on the right side of parliament supports the economic as well as social
factors. Such type of political parties encourage capitalism (Zostautiene, Zvireliene and
Susniene, 2017).
3. Identifying whether competition is good or Bad
Competition is good as it encourages firm to create innovate good and allow organisation
to maintain their business standards. It provides business entity an opportunity to present their
competencies and promote their brand in marker. Competition allows business unit to encourage
their employees to improve their performance at workplace and providing them with various
career opportunities. It provides an opportunity to learn from mistakes and allows them to gain
knowledge about managing various business activities. Competition provides firm a chance to
identify their strength and weaknesses. It also reminds company about its goals and objectives.
Competition allows manager in organisation to develop creative thinking. Competition support
business entity in its growth. It provides enterprise an idea that can be used by firm for
improving the quality of their products as well as services. Competition helps organisation in
improving their employee’s performance. It also assists business entity in its business
development and allow enterprise to expand their core business activities as well as encourage
firm to increase its uniqueness.
The competition can be bad as well since, has great effect on the quality of services as
well as product. It divers the firm focus. It also has great impact on volume of sales and
profitability. There more chance of misuse of brand. It also has great influence on relationship
between various companies. Competition has great impact on the growth, sustainability and
growth of organisation (Berman and Wang, 2017).
4. Explaining the term of ‘climate change’ from scientific point of views
Climate change typically refers to the change in weather or it could also be defined as
environmental change. The climate of particular region is considered as its weather averaged.
According to the scientist climate change means the extent to which global warming occurs.
Scientist believes that Earth climatic change process is unambiguously warming it is extremely
higher that is caused by human beings. Global warning evolves from rise in proposition of
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greenhouse gases that are present in environment. This is generated from burning The equal
causes of it are humans as well as volcanic aerosols. Moreover, natural change also have little
impact.
5. Explaining the term ‘fracking’
Fracking or Hydraulic fracking is a technique that is used to extract oil and gas from
sedimentary rock rocks. This process includes drilling down into earth before water, chemicals
and sands that are injected into rock with high pressure. It allows the gas to flow freely.
Fracking can be defined as the method of rock fracture which is separated by high pressure
mixture.
The people are more concerned about this as this process has great negative effect on
environment due to chemical and pressure used. The company that is producing oil and gas
through fracking process has much chances to get suspended from the market. A large amount of
water is required to carry out fracking process there are various environmental issues. The
enterprise has much impact of various laws related to environment on their business activities.
These firms have high chances of legal obligations. Several; Environmentalist believe that
harmful chemicals such as cacinoghenic chemicals that are used during the process may have
negative effect on the ground. It has great impact on the value of the houses located at the site
where fracking procedure has been implemented by oil and gas companies. This processes
increase the chances of natural disaster such as earthquake, Fracking is considered as lifeline for
oil and gas business entity as it is the source of earning for them. As this procedure require lots
of water, People are more concerned about the quality of water and scarcity (Wheelen and
Hunger, 2017).
6. Political impact for UK business from Britain leaving the EU
Brexit of UK from Britain leaving EU has both positive as well as negative impact on
various industries. When Britain voted to leave EU there is the decrease in value of currency
especially Pound. The United Kingdom has to face loss of approx. 4.5 billion pounds which the
various industries in UK earned from exports. It has great impact on the growth and competitive
strength of various industries. The companies got relief from stiff and fierce competition .It has
great effect on the profitability as well as sustainability of such organisation that was totally
dependent on the global market. This activity of UK has great impact on small firm that was
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financial supported by international firms. The organisation has to comply with lesser rules and
regulation. These factors have major impact on bank and other financial institution as they
receive major investment from global companies. There was decline in growth of small
enterprises. It has great effect on construction industry as well (Pitelis and Runde, 2017).
CONCLUSION
It has concluded from the report that the United Kingdom is considered as capitalist
economy as the country is dependent on the other countries for their economic development. The
project has successfully defined the meaning of right as well as left wings. It has been concluded
from the project that competition is good as well as is bad for business. It is good as it provides
firm an opportunity to demonstrate their skills and develop various competencies. Competition is
bad because it divers the attention of organisation from its objectives and goals.
It has been concluded from the study that there has been great impact of Brexit on various
industries in UK. According to scientist climate change means global warming which is created
by human (Galati and Moessner, 2017).
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REFERENCES
Books and Journals
Berman. E. and Wang. X. 2017. Essential statistics for public managers and policy analysts. Cq
Press.
Galati. G. and Moessner. R. 2017. What do we know about the effects of macroprudential
policy?.
Hudson. M. 2017. Managing without profit. Directory of social chang.
Wheelen. T.L. and Hunger.J.D.2017. Strategic management and business policy. Pearson.
Capabilities, resources, learning and innovation: a blueprint for a post-classical
economics and public policy. Cambridge Journal of Economics. 41(3). pp.679-691.
Zostautiene.D. Zvireliene. R. and Susniene D. 2017. Changes of marketing culture expression:
comparison analysis in times of economic recession and recovery. Economic research
Ekonomska istraživanja .30(1). pp.302-317.
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