Impact of Macro Economic Policy on Business Management in the UK

This report provides an analysis of the impact of macroeconomic policies on business management, focusing on the United Kingdom's economic concerns, particularly the impact of Brexit. It discusses general economic concerns, monetary policy (including the influence of real GDP on money supply), fiscal policy (taxation, social security, and public expenditure), and capital markets (primary and secondary markets, crowdfunding, peer-to-peer lending, and cryptocurrencies). The report concludes that various economic factors significantly affect the business environment, both positively and negatively, and highlights the different sources of funds available to companies for acquiring capital. It references academic sources to support its analysis.

Business management and
macro economic policy

Table of content
 Introduction
 General economic concerns
 Monetary policy
 Fiscal policy
 Capital market
 Conclusion
 References

Introduction
It is important for the organization to analyze the various
factors such as economic growth fiscal policies. Deficit
policies and other factors which are present in economy.
These factors impact the business environment in different
aspects such as positive and negative impact. The brief
discussion related top these impacts are given below.

General economic concern
One of the most important economic concern in United
kingdom is the impact of Brexit on the business
environment. United kingdom restricts all their trade
agreements with the European union. This impacts of this
agreement is negative on the business environment of the
country because the organization which perform their
business operations in European nations faces many
difficulty in operations.

Continue..
One of the most important impact which is seen due to Brexit
is that the wages of the labor are increased by the large
amount in the European nation and also the transportation
cost increases which minimize the profit margins of the
company. Many company of the united kingdom shuts down
their business which result to increase in the unemployment
in the country.

Monetary policy
Monetary policy is related to those policy developed
by the government to control the supply of money in
the country and also the different channels which is
used in this supply. This policy are executed by the
central bank authority of the country. These policies
helps the government to control the interest rates and
inflation and deflation in the country.

Continue..
Real GDP is the most important factor which influence the
demand and supply of money in the country. If real GDP
increases, then the purchase of product and services
becomes high the supply of money increases. If the real
GDP decreases than vice- versa.

Fiscal policy
 Fiscal policy refers to those policy under which the government
allocates and manipulates the rates of taxation and government
expenditure for the stability of economy.
 Taxation is related to amount of money which the citizen of
country given to their government for the development of
nation. Taxation plays an import role in the economy because it
provides huge amount of funds which is used by the government
for the betterment of economy.

Continue..
 Social security pension and other benefits
impact the expenditure of government in
different aspects because it include huge
amount of government spending.
 Public expenditure refers to the expenditure of
government on the health and other issues of
the country.

Capital market
 Capital market is related to those financial market where the
long term borrowing and equity backed securities are buy
and sold.
 Primary market is related to those market where the
securities are formed such as initial public offering and
secondary capital market refers to those market under which
the retailers traded the securities.
 Crowd funding is related those method of funding under
which the capital are introduced from large number of
people with the help of internet.

Continue..
 Peer to peer is related to those platforms which connect the
person in need of fund to those person who wants to lend their
capital for return.
 Cryptocurrencies are related to those electronic currencies which
is used in many countries as a source of acquiring capital.

Conclusion
It is conclude from this report that there are many factors in the
economy which impact the business environment positively and
negatively. There are different types of sources of funds are
present in the market which the company can use to acquire
capital for their business are concluded in this report.