International Marketing: UK Market Analysis Report - Economy and Trade

This report provides an analysis of the UK's economy, focusing on key aspects relevant to international marketing. It examines the UK's GDP, which is estimated at $2.9 trillion and explores its diverse economic sectors including services, construction, manufacturing, and tourism. The report details the GDP per capita, unemployment and inflation rates, and the balance of payments for services. It also covers major exports and imports, trade agreements, and the business environment. The analysis highlights factors such as currency exchange rates, FDI inflows, and the impact of Brexit on the UK's economic landscape. The report references data from various sources including the Office for National Statistics, PwC, and The Guardian to support its findings and provide a comprehensive overview of the UK's market potential.

INTERNATIONAL MARKETING

UK`s economy
The economy of UK is quite diversified, where services, construction, manufacturing,
and tourism contribute towards the nation`s GDP. The robust economic recovery from the
financial crisis aids effective rule of law. The GDP of the country is estimated at $2.9 trillion
and it is expected to grow with 1.8 percent (Office for national statistics, 2018). There is no
growth in last quarter of 2019, where it increases the construction and service sector, which
are offset by other party shown from the motor industry. Per capita of UK is $44118. The
unemployment rate is nearly 4.3 percent. The inflation rate of UK is 2.7 percent. FDI inflows
are estimated at $15.1 billion. The regulation efficiency of UK economy covers its business
freedom, monetary freedom, and labour freedom (Office for national statistics, 2018).
Currency exchange rate. UK`s service export will include 396579074270 in balance
of payments with the current service import of 256906844. Exports of goods and services
contribute a percentage of GDP nearly to 30.01 percent (PWC, 2019a). Import of goods is
nearly 31.77 percent GDP. Majority of export goods include packaged medicaments, gas
turbines, hard liquor, and crude petroleum. Only nations, which bought more from Ireland,
Malta, Denmark, and Sweden. The government provides open regime for trade. Furthermore,
EU has encouraged the policymakers while addressing the structural deficiencies especially
lack of productive growth (PwC, 2019b). The business environment of UK is liberal for
labour, which makes it most efficient investment and business. Trade agreements of UK will
expand its trade relationships at global level. According to the Guardian, it is seen that EU
allows UK to conduct their trade freely with other 27 nations (2019 Index of Economic
Freedom, 2019).
The country has the largest manufacturing group where value of exports has reached
to £18 billion of motor vehicles. It is expected that long-term projections can be improved by

exiting from EU (European Union). Economic risks have been weighted because of
possibility of disordered Brexit and global risks (2019 Index of Economic Freedom, 2019).
Consumer spending has been contributing towards the enhancement of the economy as
assisted by real earnings over the past few years. Housing market has cooled and it is seen
that business investments has declined trend due to Brexit uncertainty. UK`s long term
economic trouble is to cater the long term standing in production level. UK is third lowest
investment rate in OCED.
Saving rates is related to investment rates where the policies, which increases saving
rate in a positive way. Employment rate and growth highly depend on creation of jobs in
public sector where organisations across the private sector has slowed down the wage growth.
Inflation has decreased to its lowest level for nearly three years, which was increased by
struggling retailers who offer high discounts to induce the customers during the Christmas
Eve. As per the office for national statistics, the annual rate on CPI dropped to 1.3 percent.
High street discounting and price of hotel room has dragged inflation. The review of UK`s
economy states that Brexit is an major influencing factor, which is the reason behind its
collapse (The Guardian, 2020).

References
2019 Index of Economic Freedom, 2019 United Kingdom. Available on:
https://www.heritage.org/index//country/unitedkingdom [Accessed on: 12/02/2020]
Office for national statistics, (2018) Who does the UK trade with? Available on:
https://www.ons.gov.uk/businessindustryandtrade/internationaltrade/articles/
whodoestheuktradewith/2017-02-21 [Accessed on: 12/02/2020]
PWC, (2019a) UK Economic Outlook, 2019? Available on:
https://www.pwc.co.uk/services/economics-policy/insights/uk-economic-outlook.html
[Accessed on: 12/02/2020]
PwC, (2019b) The Productivity Puzzle revisited: why has UK productivity lagged behind
other advanced economies. Available on:
https://www.pwc.co.uk/economic-services/ukeo/ukeo-november-2019-productivity-
puzzle.pdf [Accessed on: 12/02/2020]
The Guardian, (2020) How has Brexit vote affected UK economy? January verdict. Available
on: https://www.theguardian.com/business/2020/jan/30/how-has-brexit-vote-affected-
uk-economy-january-verdict [Accessed on: 12/02/2020]