Analyzing Business: Government Impact, Cuba's Socialism & UK Economy

This essay provides a comprehensive analysis of the factors influencing the business environment, focusing on Cuba's socialist model and the impact of government regulations and political factors on businesses. It examines the effects of government policies on interest rates and political stability, and explores how political environments can affect economic performance, regulatory changes, and risk mitigation strategies. The essay also discusses the impact of cheap energy availability, population changes in the UK over the next 20 years, and the effects of decarbonising the economy on UK businesses in the next decade. The analysis concludes by highlighting the importance of understanding these factors for effective business strategy and sustainability. Desklib provides access to similar essays and study resources for students.

Understanding Business
1

Contents
Introduction.................................................................................................................................................3
1. Explain why Cuba is considered a Socialist Country?.........................................................................4
2. Explain the impact of Government regulations on 3 specific areas of business functions?..................5
3. Explain three areas of a business’s functioning that are affected by politics and government in 2017?
6
4. Explain the impact of the availability of cheap energy on businesses?................................................7
5. Explain how expected population change will impact on UK business over the next 20 years............8
6. Explain how decarbonising the economy will affect UK business in the next 10 years.......................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
2

Introduction
The assignment is about the understanding the business which includes the business functioning
which are affected by the government and the politics and the impacts which of the cheap energy
on the business.
3

1. Explain why Cuba is considered a Socialist Country?
Cuba is known as the socialist country because of the Community party of the Cuban which
maintains the monopoly on the power of the politics. The leadership of Fidel Castro under the
socialist revolutionaries in the year 1959 over the government of the Fulgencio Batista and has
established their dictatorship under the control of the monopoly of the Communist party of
Cuban. The government of US owned the agricultural land and business and with the Union of
Socialist Soviet. The government of US provided the support by half-hearted for the invasion of
Cuba by the people of Cuba who fled out from the US.
When the Bay of Pigs invasion has been failed, the Union of the Soviet kept the economy of the
Cuba float with the abundant aid till the Union Soviet collapsed in 1991 (Ramsay, 2017). Till
that time, the economy of Cuba has been limped and propped by exports of the products of
agriculture and the revenue from the sector of tourism and the payments from the other countries
services of the medical workers and the teachers of the Cuban. As the party of the Cuban
Communist maintains the monopoly on the power of politics and they are able to enforce the
dominance of the planned economy of the socialist especially by the suppressing but the effort of
smallest scale in establishing the private business by the Cubans. Cuba is the socialist country as
it takes the efforts on its level of government for the betterment of economy for the society.
4

2. Explain the impact of Government regulations on 3 specific areas of business functions?
The government establishes many policies and the rules to guide the business, some of the rules
are minimum wage and other policies can indirectly influence the business.
 Rate of interest
The policies of the government can influence the rate of the interest, as the rise in the rate of
interest will increase the cost of borrowing in the community of business (Lubik, and Matthes,
2015). Higher rates of interest can decrease the spending of the customers and the lower rates of
the interest attract the investments as the production of the business increases. The government
can impact the rate of the interest by printing more money in the short run which can lead to
inflation.
 Stability of Politics
The policies of the government depend on the culture of the politics in the current time. The
design of the policy will be different from the stable country from the unstable country. The
political system which is stable will allow the business in taking the decision in a friendlier
manner which promotes the local business and attracts the foreign investors. On the other hand,
the unstable system of politics will bring the challenges the ability of the government for
maintaining the laws and orders.
 Market Catalyst
The policies of the government change the social behavior of the business environment. The
development of the new technology can be underwritten by the government which brings up the
necessary changes (Reed, et. al., 2017). The duties and the taxes can be exemptions for the
particular sector which trigger the investment and can generate the growth.
5

3. Explain three areas of a business’s functioning that are affected by politics and government
in 2017?
The environment of politics in the country affects the business and brings the risk factors which
lead the organization suffers from the loss. The political environment in the country affects the
environment of the economy as it affects the performance of the business.
1. Impact on the Economy:
The environment of the politics into the country can affect the environment of the economy, and
this economic environment affects the performance of the companies (Carriero, et. al., 2016). In
the country the US there are differences in the policies of Republican and Democratic and this
has been implicated the factors such as spending of the government and the taxes which affects
the economy of the country.
2. Changes to the Regulation:
The changes in the regulations and the rules affect the business. In the twenty-first century, after
the scandal of the accounting, the US Securities, and Exchange Commission had become more
focused on the compliance of the corporate and the government has introduced the compliance of
the Sarbanes-Oxley regulation of 2002. As it was the response to the social environment for
making the change more accountable in the public companies.
3. Mitigation of Risk:
There is the only way to manage the political risk is to buy the risk insurance of the politics as
many organisations which have the international operation use this type of the insurance for
mitigating the exposure of the risk which results in the instability of the politics. There are some
of the indications which display the idea of the exposure of risk which the organisations have in
most of the countries.
6

4. Explain the impact of the availability of cheap energy on businesses?
In the current time, the world is much dependent on the oil, coal and the natural resources for
meeting its energy needs. The more utilization of the energy sources has the major impact on the
environment as these sources of the energy are the non-renewable which are not last forever. The
supply of this is decreased and they have become too expensive which are very difficult to
retrieve and the increasing price of the resources are affecting the budget of the organisations and
has the damaging impact on the environment (Twidell, and Weir, 2015). The eco-friendly energy
is also known as Green energy and the sources of the renewable resources have been acquired
the attention of the government, people, and the companies in last some years in the world are
embracing the responsibilities of the environment.
The conventional energy has spreading jobs as the business owners are worried about the cost of
nuclear which has been phase out and has been moved to the renewable which can hurt the
manufacturers of the machinery, the car industries and other industries which are the pillar of the
countries economy. The researchers and the Statisticians having the problem in keeping the track
of the change which makes the full assessment very difficult. According to the commissioned
study by the Ministry of the Federal of Energy and Industry, approx 371,400 jobs have been
stemmed from the production and the supply of the renewable resources, the manufacturing of
the power generation hardware, servicing the facilities of the renewable resources and the
operations related to the Research and Development.
7

5. Explain how expected population change will impact on UK business over the next 20 years
The population of the UK has been analysed to increase by the 9.7 million in next 20 years and
has been estimated to 74.3 million in the mid of 2039 and 50 percent of the population increases
has expected because of the net migration. The increasing population brings many issues which
are negative and the positives. From the perspective, the growth of the population is the good
news as the growing population increases the capacity of the production of the economy and
helps the UK in avoiding the demographic time bomb from improving the revenues on the taxes.
The growing population will magnify the old problems such as housing crisis and supply
shortage and this can also put the pressure on the existing infrastructure and the network of the
transport. For dealing with the increasing population, the government is needed to increase the
building the land of greenbelt and the changes in the landscape of UK.
The other thing is that the growth in the population will help the economy of UK will become the
largest in the EU but there are the consequences for dealing with the increased demand and the
increased congestions on the local infrastructure.
Growth from the net migration
Benefits Costs
Increased in the force of labour and the
capacity of the production.
Increasing the problems of the housing
expenses.
Increasing the tax revenues Putting the pressure on the public services in
the areas which have the high population
growth.
Filling the shortage of building and the
agriculture
Possible Pressuring downwards on the
unskilled wages
8

9

6. Explain how decarbonising the economy will affect UK business in the next 10 years.
In the sector of the finance plays the important role in reducing the emission of global of the
gases from the greenhouse which are required by the scale and the pace for many reasons. The
huge amount of the capital is needed for investing the development of the infrastructure of the
low carbon energy especially in emerging and developing the economies (Clarke, et. al., 2017).
Most of the work of the analytics and the debate of politics on the sector financial roles in the
mitigation on the climate which focuses on how to increase the institutional investment by the
drama in the infrastructure of low carbon energy which is the big issue. The role which the
investors of the institutions play in addressing the change in the climate has been gone far away
from the issues of the infrastructure of the finance. The investors of the institutions are more than
the financier’s infrastructures as they are the creditors and the investors for the large segment of
the global economy.
The organisation for the Economic of Co-operations and the development and the institutional
investors which includes the insurance companies, pension funds, and investments funds. The
largest portion of the institution is not the infrastructure class of the assets but it is the more
conventional assets which are listed as equity and the bonds of the corporate. Increased
regulations, investee companies, policymakers and the large public are expecting from the
investors for fulfilling play the role in decarbonisation the economy. There are growing trend
towards the change of the climate and the changes in the environment, governance and the social
factors by the organisations include in the international level.
10

Conclusion
This has to be concluded that this assignment is about the understanding business which has
discussed about the population change in the country after 20 years and the decarbonising of the
economy. it includes the impact of cheap resources on the business.
11

References
 Ramsay, D.G., 2017. A Proposal for a community development field placement in a socialist
country.
 Reed, P., Cort, T. and Yonavjak, L., 2017. Data-Driven Green Bond Ratings: A Market Catalyst.
 Lubik, T.A., and Matthes, C., 2015. Calculating the natural rate of interest: A comparison of two
alternative approaches. Richmond Fed Economic Brief, (Oct), pp.1-6.
 Carriero, A., Clark, T.E., and Marcellino, M., 2016. Measuring uncertainty and its impact on the
economy. Review of Economics and Statistics, (0).
 Twidell, J., and Weir, T., 2015. Renewable energy resources. Routledge.
 Clarke, J., Heinonen, J., and Ottelin, J., 2017. Emissions in a decarbonised economy? Global
lessons from a carbon footprint analysis of Iceland. Journal of Cleaner Production, 166,
pp.1175-1186.
12