Evaluating Business Environment: Brexit's Impact on Demand & Supply

This presentation provides an overview of the impact of Brexit and COVID-19 on the business environment, focusing on demand and supply models, market structure, economic profit, costs and production, and elasticity. It highlights the issues of soaring shipping costs and port congestion due to increased demand for Chinese goods and disruptions in supply chains. The presentation discusses how these factors have led to higher transportation costs, strained shipping capacities, and changes in market structures, potentially promoting monopolies. It also explores the implications of Brexit on UK trade and the rising demand for containers in China, affecting the prices of goods like trampolines. The presentation concludes that businesses need to plan strategically for advance shipments and consider packaging to mitigate the challenges posed by these economic shifts, with a call for smaller retailers to leverage integrated transportation partners.

Business Environment

Contents
• Introduction
• Overview of the article
• Demand and supply
• Market structure
• Economic profit and business organization
• Costs and production
• Elasticity
• Conclusion
• References

Introduction
 Brexit has caused a range of issues for businesses resulting in fluctuations in demand and supply models
as well as caused shipping problems.
 The purpose of this presentation is to reflect upon the issues of soaring shipping costs resulting in high
prices of outdoor large toys such as trampoline and other swings.
 The presentation is based on understanding of economic concpets and how economic factors affects rising
prices as well as long term consequences of brexit.
 In this presentation the aspects of microeconomic theories are discussed related to the extract.
 It further reflects on economic issues and theories such as demand and supply models

Overview of the article
 The article mainly focus upon estimated high
prices of trampoline as said by owner of large
swings and outdoor toys which is mainly due to
issues of high transportation costs as well as port
congestion.
 According to a game retailer james owen who is
owner of outdoor toys stated that due to rising
prices of transportation and worsening
situatioins of port congestion implying increase
in prices of large toys as ships are not having
enough capacity to load these large sized items.

Continue
 He further stated that in some cases prices of shipping is even higher than the original cost of the item.
Issues are keep rising because of high climbing in rates due to port congestion.
 The increasing demands are resulting in high increase in shipping costs and it is also been observed that
ocean freight is outweighing the cost of the item.

Continue
 The main microeconomic concepts and theroies that are being outlined in this article is the issue of rising
shipping prices and port congestion because of high demand.
 Demand for chinese goods have rised all around the world which is having serious implications placing a
severe strain on existing shipping capacities.

Continue
 The prices are almost tripled on major world trade routes since a year ago of shipping a 40-foot container.
 The rates of hauler have also increased and they are charging high rates due to increase in demands.
 The cost of hauling a container has reached to 1800 euros if the retailers can't made it through haulers.
 The trends are emerging among Irish hauliers to bypass welsh ports for the purpose of avoiding
bureaucratic conditions of brexit implications.

Demand and supply
 Demand and Supply refers to the relationship existing between quantity that is expected by consumers of
a commodity which manufacturers are willing to sell at different prices and individuals are willing to buy.
 The article discuss the major issues of high transportation costs and port congestion which is critically
related to demand and supply models.
 Transportation prices and shipping costs are directly associated with demand and supply of commodities
which reduce their capacities to carry goods from one place to another.

Continue
 Since the demand of chinese goods are increasing and skyrocketting, the capacities of loading
commodities are getting low implying the conditions of port congestion.
 These situations are worsening and causing strain on economy due to increase in demand and measures
which are takent to combat the consequences of covid-19 which disrupted the whole supply chain.

Continue
 Demand refers to the quantity of commodities that consumers are willing to buy at different prices during
a given period of time.
 Demand is directly linked with various factors of economy and changes in demand as well as supply
models are likely to cause a range of microeconomic issues.
 Businesses are impacted greatly by changes in demand which has occured greatly due to the emergence of
pandemic.

Continue
 The pandemic has caused disruption in supply chains which is being reflecting in high shipping costs.
 Moroever due to increasing demand shipping loading capacities are increasing implying port congestion.
 Increasing demands as well as shortage of empty containers are causing great disturbance in the process
of distribution.

Market structure
 Market structure refers to the patterns according to which industries are categorised and differentiated on
the basis of their degrees as well as existing nature of competition among commodities. There are mainly
four market structures that are perfect competition, monopolistic competition, oligopoly and monopoly.
 The implications of pandemic and Brexit has caused great disturbances in market structures through
causing major regulations in trading resulting in a range of microeconomic issues.
 Covid-19 has promoted monopoly in markets providing organisations and companies with less options to
avail services from.