Role of Fiscal and Monetary Policy in UK Economy

GROUP PRESENTATION
ORGANISATION:
VOLKSWAGEN

Content cover
• Introduction
• Role of Fiscal policy in United Kingdom
• Role of Monetary policy in United Kingdom
• Impact of fiscal and monetary policy on UK economy
• Conclusion
• References

Introduction
Business environment is the combination of all internal and external factors.
These factors can include:
-employees
-members of the company
-government
-suppliers
-investors
-creditors and many more.
The main aim of this presentation is to provide an understanding about fiscal
and monetary policy of the United Kingdom which impacts upon
organizational activities of Volkswagen.

Role of Fiscal policy in United Kingdom
Fiscal policy is the means by which a government:
-adjust their expenditures and tax rates to monitor and influence a
country's economy.
-effect the economy using the money supply and interest rates.
The main objective of fiscal policy is to create a healthy and
wealthy economy of nation so that it can benefit companies like
Volkswagen. There are two types of fiscal policy which are used
by the government which are as follows:

Impact of Fiscal policy
-Fiscal policy impacts consumer demand of an organization
such as Volkswagen. High tax rates on automobile decreases
the demand for products of this company.
-Fiscal policy is a tax related policy which affects demand of
consumer by effecting income of consumer. Exchange rate
decreases the import of these cars as exchange rate increases.

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Expansionary - This is most common and most widely
used policy by the government. In this policy, Govt. either
spends more or cut taxes rate or both which affects
Volkswagen.